*El Paso Natural Gas Company*

*Second Revised Volume No. 1A*

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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective

**Second Revised Sheet No. 284B **Second Revised Sheet No. 284B

Superseding: First Revised Sheet No. 284B

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

9. CAPACITY RELEASE PROGRAM (Continued)

9.9 Awarding of Released Capacity (Continued)

(b) (Continued)

(ii) OPTION 1 - Weighted Composite Bid Calculation

Releasing Releasing Bidding Bidding

Shipper's Shipper's Shipper's Shipper's

Assigned Bid Maximum Bid Actual Bid Actual Bid

Weighting (%) Values Values Weighting (%)

(a) (b) (c) (d)

(1) Quantity in Dth

Weighted to Offer

Term

(2) Term Stated in

Months

(3) Reservation

Charge(s) and

Reservation

Surcharge(s)

Actual Weighted _______

Composite Bid ______%

* d = c/b x a

(iii) OPTION 2 - Net Present Value Calculation

n

Present Value = R x Q/((1+ i) )

where: i = interest rate per Day to be used in discounting

n = the number of Days in each Bid Month

Q = the Bid Quantity (in Dth)

R = the Bid Rate per unit of capacity (Bid Rate/30.4167)