El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

Original Sheet No. 299F Original Sheet No. 299F : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

31. WASHINGTON RANCH FACILITY STRANDED INVESTMENT COST RECOVERY

(Continued)

31.4 Determination of the Reservation Surcharge and Monthly

Amortized Amount (Continued)

month interest projection, divided by six (6) months

to derive the interest for the applicable Recovery

Period.

(iv) Effective the third month following the end of the

Amortization Period, El Paso shall calculate the

actual interest for any past period of estimated

interest utilizing the appropriate Interest Rate,

and shall make a one time adjustment to reflect the

appropriate amount to each Shipper's invoice.

existing Shipper terminates during any Recovery Period,

the unamortized portion of the costs inclusive of

interest allocated to such Shipper under this Section

31.4 will be due within thirty (30) days or such other

period as mutually agreed to by El Paso and Shipper, not

to extend beyond the termination of the Amortization

Period.

(d) Each Shipper subject to this Section 31 shall have the

option of paying the amount allocated to it in a lump sum

or over a shorter Amortization Period if desired, with an

appropriate interest adjustment.

31.5 True-up of Actual Versus Estimated Loss or Gain Realized from

the Sale of Washington Ranch Gas Inventory - El Paso shall

adjust the remaining unamortized balance to reflect the

difference between the actual gain or loss and the previously

estimated gain or loss from the sale of gas inventory from the

Washington Ranch Facility. Such adjustment shall be reflected

in El Paso's earliest semi-annual filing following one year's

effectiveness of this Section 31. Such adjustment shall be

reflected in the balance as of February 1, 1993 for interest

accrual purposes.