a meaningful company doing meaningful work delivering meaningful results Monthly Imbalance Settlement and Volume Allocation Working Group Changes

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1 a meaningful company doing meaningful work delivering meaningful results Monthly Imbalance Settlement and Volume Allocation Working Group Changes 1

2 Creating a New Culture the place to work the neighbor to have the company to own 2

3 Defining Our Purpose El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner 3

4 Agenda Monthly Imbalance Settlement Provisions Volume Allocation Working Group Changes Frequently Asked Questions Netting Review Noms & Scheduling Questions 4

5 Flowing Gas Table of Contents Page Overview of Changes 5 Shipper Imba la nce State ment Overview.. 10 Summary Report.. 12 Imbalance Activity. 14 Daily Summary - Current.. 18 Daily Summary - Other Daily Detail 22 SOC/COC Screens Summary Screen. 26 Detail Screen. 28 Contact Us

6 Monthly Imbalance Settlement Changes Overview El Paso has begun implementation of the Monthly Imbalance Settlement provisions in Dockets RP and RP The major changes related to these provisions are: 1) Flow Day Diversion, 2) Monthly Imbalance Percentage Determination, 3) Make-up, Payback, Trading and Cash-out Procedures, and 4) Prior Period Measurement Adjustments. This Monthly Imbalance Settlement is the result of El Paso and the settling parties to the 2006 Rate Case working diligently and in good faith to put new procedures in place to address the various issues associated with monthly imbalances. This Settlement is premised on all Shippers commitment to use commercially reasonable efforts to reduce daily and monthly imbalances as close to zero as possible. Therefore, this Shippers commitment goes beyond merely achieving a monthly imbalance that barely prevents cash-out. In addition to that, this Settlement includes a commitment, on the part of Shippers/Operators who provide measurement data (Third-party Measurement) to El Paso, that such data will be provided to El Paso as soon as reasonably possible after it is available, instead of waiting until the end of the month. Flow Day Diversion Payback Shippers may utilize Flow Day Diversion to reduce an imbalance due El Paso. Shippers owing gas to El Paso may divert scheduled transactions from the original delivery point to a System delivery point to make-up an existing imbalance. All parties must agree to the diversion Delivery point operator, Shipper with imbalance and El Paso New transaction type will be used: FR Flow Day Diversion Payback Existing Flow Day Diversion tariff provisions pursuant to Section 4.1 (g) of GT&C will apply to these transactions FDD makeup transactions can only be entered in Cycles 3 7 FDD makeup transactions can only be used for the following rate schedules: FT-1, FT-H, NNTD, and NNTH Monthly Imbalance Percentage Determination The method used to determine a Shipper s monthly imbalance percentage where it is the Swing agreement for a location using the NAES B swing allocation method has changed. The monthly imbalance percentage for Swing agreements at delivery points using the NAESB swing method, which designates a specific contract to which imbalances are allocated, will be determined by dividing the monthly imbalance quantity allocated to the designated swing contract by the total scheduled quantities of all contracts for all Shippers at the delivery locations where the contract with the imbalance is the swing contract. See Section 32.3 (d) (xiii) of the El Paso Tariff. On the Shipper Imbalance Statement, this total scheduled quantity volume to be used for the imbalance percentage calculation, will be located under a new column titled Imbalance Calculation Denominator. 6

7 Monthly Imbalance Settlement Changes Make-up, Payback, Trading and Cash-out The following cash-out items will not change: Shipper may still elect to cash-out to zero 3-month tiering remains the same (5%, 3%, 0) Small Quantity Imbalances - Tracked by month from December through November - Netted each month if possible - Cashed out at year-end (January invoice) using 100% December index price Starting in August 2007, Make-up/payback, Trading and Cash-out processes are enhanced to permit Shippers to make-up, payback and trade imbalances after they have received final imbalance data from El Paso. The current month invoice generated on the 9th business day will not include a Month 1 imbalance cash-out to 5% Shippers will have 5 business days after the invoice date to reduce the Month 1 imbalance to below 5% using either: 1) makeup/payback transactions or 2) trades with other Shippers. At the end of the 5-business day period after the invoice is issued, any remaining Month 1 imbalance in excess of 5% will then be cashed out to 5% Shippers will have until the end of Month 2 (approx. 10 days) to reduce remaining Month 1 imbalance to the 3% level or below or have such excess subject to cash-out The 5-Day Cash-out rate will no longer be used. The imbalances subject to cash-out will be priced at the index price for the month the imbalance was created. With the implementation of these enhanced procedures, the Month 2 invoice may possibly contain two cash-outs for the Month 1 imbalance: 1) Cash-out to 5% 2) Cash-out to 3% 7

8 Monthly Imbalance Settlement Changes Prior Period Measurement Adjustments Beginning in August, 2007, there will be changes made to the handling of Prior Period Measurement Adjustments (PPA) to provide a more favorable treatment of the PPA impact on imbalances. Any PPA made in a month that would reduce the shipper s current month imbalance, will be applied to the shipper s current month imbalance activity. Any PPA made in a month that would increase the shipper s current month imbalance will be applied in the month following the month in which the shipper receives the adjustment. In the following month if the shipper s total imbalance exceeds 5%,and is in the same direction as the prior period measurement adjustment, an amount up to that which exceeded the 5%, but not more than the prior period measurement adjustment, shall be cashed out at 100% of the applicable cash out index price for that following month. In order to facilitate the tracking of the PPA amounts, four new columns will be added to the Shipper Imbalance Statement: 1. PPA Brought Forward This column will reflect PPA volumes that were not applied to the previous month s imbalance but will be included in the current month processing. 2. Pending PPA This column will reflect PPA volumes that have been received during the current month. The volumes in this column will be applied to the month or carried forward at the end of the month depending on if it will decrease or increase the imbalance. 3. PPA Applied This column will reflect PPA volumes received during the month that have been applied to reduce the imbalance during the current month processing. 4. PPA Carried Forward This column will reflect PPA volumes received during the month that have not been applied to the imbalance during the current month processing but will be included in the imbalance for the following month. 8

9 Volume Allocation Working Group Changes Additional Volume Allocation Process Beginning on June 28, 2007, El Paso added another volume allocation process to the daily processing. This is to provide shippers with more current imbalance data during the day. Prior to this change, El Paso provided imbalance data to Shippers by 6:30 a.m. for the gas day which ended the previous calendar day at 8:00 a.m. Through the Simplification process, Shippers requested that El Paso provide this information earlier. As a result, El Paso has advanced the roll of measurement data for the previous gas day in order to have preliminary measurement quantities available by 2:00 p.m. The allocation process will then be run and new imbalance information will be available to Shippers by 3:00 p.m. for the gas day which ended at 8:00 a.m. the same calendar day. No change will be made to the existing allocation process. It will continue to run at 6:00 a.m., with imbalance data available to Shippers by 6:30 a.m. It is important to note that the additional allocation process could result in a Shippers' imbalance quantities changing during the day. Therefore, imbalance quantities may now change twice per day. The Operator Allocation and Shipper Imbalance daily reports will include a Last Update Date/Time in the upper right hand portion of the report to alert Shippers as to what allocation data is reflected in such report. The Following is an example of this timeline: June 29, :00 a.m. - gas day ends for June 28, 2007 June 29, :00 p.m. - measurement (CMS) data available, allocation process run June 29, :00 p.m. - imbalance information available to shippers for the period through the end of gas day June 28 June 30, :30 a.m. - additional measurement and scheduled data available through June 29, allocation process run, updated imbalance data available for gas day June 28 SOC/COC Screen Changes The Strained Operating Condition/Critical Operating Condition screen changes in Passport are scheduled for implementation in Fall

10 Shipper Imbalance Statement 10

11 Consolidated Shipper Imbalance Statement Overview The daily and monthly versions of the Shipper Imbalance Statement have been consolidated into one report. The report provides Shipper transportation contract activity on a daily basis. Displays daily detail with a preliminary watermark until final on the 9th business day of each month Displays final imbalance information for the previous month Displays which delivery locations caused an imbalance on a contract Provides daily and month-to-date imbalance through the month, updated each day Comprised of five reports - Summary Imbalance Activity Daily Summary - Current Imbalance Activity Daily Summary - Other Activity Daily Detail Filter Options Busn Month - Default is the current month. Select prior months from the drop down pick list. The note to the right shows whether the data for the month is preliminary or final. Choose Agmt Code - Default is All to display information for all contracts for the Shipper. Shipper can select a specific contract from the drop down pick list Available Formats Export - Exportable to Excel Print - Displays the On-line view, select Print or Export to Adobe Acrobat (.pdf) from this view Close - Select to exit the report section Where to Find Passport Flowing Gas Statements - Shipper Imbalance Menu Item 11

12 Filter Option Screen PROD: El Paso Natural Gas Company xx-xxx-xxxx [Shipper Imbalance for: XYZ Company] Report Options Shipper Imbalance for: XYZ Company

13 Shipper Imbalance Summary Report Overview The Summary report lists the Shipper s contracts to which imbalances are allocated based on the Predetermined Allocation (PDA) methodology chosen. The report shows the Beginning Imbalance, Net Receipt, Net Delivered, and Ending Imbalance summarized for the month for each contract. Where to Find The Summary report is the front page displayed in the Shipper Imbalance Report Changes from the Monthly Imbalance Statement Moved MMBtu from columns to the report heading Things to Note Service Type - Type of Transportation Service Agreement Svc Req K - Service Request Contract number Beginning Imbalance - Previous accounting month ending imbalance carried forward Net Receipt - Quantity scheduled as received minus fuel during the month Net Delivered - Allocated measured quantity Ending Imbalance - Beginning imbalance minus received plus delivered activities during the month Imbalance Due column removed, replaced with Negative = Due Shipper and Positive = Due EPNG note in the upper right section of the page Added Quantity heading line and deleted Qty from each column heading. Changed Received to Receipt 13

14 Shipper Imbalance Summary Report El Paso Nat ural Gas Company Shipper Imbalance Statement Summary All Quantities in MMBtu Statement Recipient ID: XYZ Company Contact: Customer Service (877) Accounting Period: August 2007 Business Month: July 2007 Negative = Due Shipper Positive = Due EPNG Quantity Beginning Net Ending Service Type Svc Req K Imbalance Net Receipt Delivered Imbalance Firm Transportation FT4XZ000 (Previous accounting (Qty scheduled (Allocated (Beginning Firm Transportation FT4XX000 month ending as received measured imbalance Interruptible Transportation IT2XY000 imbalance) minus fuel) qty) minus received plus delivered) Total Total Total Total 14

15 Shipper Imbalance Activity Report Overview The new section of the report shows the items used for calculating the end of the month imbalance, imbalance percentage, and cashouts. The report details the end of month and mid-month (extended) imbalance calculations. The report is in two sections. Section 1 shows the current month activity through the 7th business day of the following month. The example includes the mid-month view at the bottom of the screen for extended activity. For Month 1 imbalances, cashout to 5% will occur after the end of the extended payback period Rate Sched - Rate schedule as defined in the EPNG Tariff Delv Month - Month in which the imbalance originally occurred Scheduled - Scheduled quantities on the contract for the current month Allocated Delivered - Allocated volumes delivered on contract for the current month (scheduled quantities plus allocated measurement (DA s)) PPA Brought Forward - Prior Period Adjustment brought forward from the prior month, because it would have made the imbalance greater during that month,to be part of the next month s imbalance Shipper Election to Cash-out to zero Options: Zero - Cash-out to Zero, Shipper elects to cash-out to zero; does not use the 5 business days after Invoice extension Mid-Zero - Cash-out after mid-month, Shipper elects cash-out to zero at end of month; cash-out occurs after the 5 business days after invoice extension Things to Note Busn Month - the month in which a transaction took place which is applied to the current month or a prior month s imbalance Contract - Swing contract to which the imbalance is applied Cashout Type - Denotes if this row reflects the mid-month (M) extended activity or the non-mid-month activity ( blank ) Begin Imbal - Imbalance carried forward from a prior month Current Imbal - Imbalance created during the current month ( Allocated Delivered minus Scheduled ) MR - Makeup Received transaction directed to the current or a prior month imbalance where the Shipper owes EPNG (makeup). MD - Makeup Delivered transaction directed to the current or a prior month imbalance where EPNG owes the Shipper (payback). Imbal Before Netting - Cumulation of PPA Brought Forward, Begin Imbal, Current Imbal, MR, and MD columns during the business month Imbalance Calculation Denominator - Quantity used in calculating imbalance percent. If NAESB Swing contract, includes all scheduled volumes at locations where contract is Swing contract plus scheduled quantities at prorata delivery locations. Imbal % Before Netting - Imbalance Before Netting divided by the Imbalance Calculation Denominator 16 Pending PPA - Prior Period Adjustments pending until the end of the month when a determination is made as to whether the PPA will increase or decrease the imbalance. 15

16 Shipper Imbalance Activity Report LAST UPDATED: El Paso Nat ural Gas Company Shipper Imbalance Statement Imbalance Activity 1 All Quantities in MMBtu Accounting Period: August 2007 Statement Recipient ID: XYZ Company Business Month: July 2007 Contact: Customer Service (877) Negative = Due Shipper Positive = Due EPNG PPA Imbal Imbalance Imbal% Busn Cashout Rate Delv Allocated Brought Begin Current Before Calculation Before Pending Month Contract Type Sched Month Scheduled Delivered Forward Imbal Imbal MR MD Netting Denominator Netting PPA Jul-07 FT4XZ000 FT-1 Jun (800) 0 40, % Jul-07 IT2XY000 IT-1 Jul , , (10,000) 9,000 (1,000) 500, % Jul-07 FT4XX000 FT-1 Jul-07 20,000 24, ,000 (4,000) 0 30, % Jul-07 FT4XZ000 FT-1 Jul , , ,000 (4,000) 6,000 40, % 1, , , ,000 (8,800) 9,000 5,000 FT4XZ000 Mid Month Calcs Aug-07 FT4XZ000 M FT-1 Jul ,500 0 (1,500) 0 3,000 40, % 0 Aug-07 FT4XZ000 FT-1 Aug-07 1,000 16

17 Shipper Imbalance Activity Report (continued) Overview Section 2 shows the end of the month processed data, including, netting, trading, application of PPAs, and cashouts. The example includes the mid-month view at the bottom of the screen for extended payback activity. 7 8 Imbal Before Cashout - Imbal Before Trading minus Trade Quantity Imbal % Before Cashout - Imbal Before Cashout divided by the Imbalance Calculation Denominator 1 2 Things to Note Netted Quantity - combining of positive and negative imbalances among the shipper s contracts SQID (Small Quantity Imbal Dth) - the SQID indicator is Yes (Y) if the imbalance is less than 2,000 dth. This is determined after within month netting and will not be cashed out each month. The indicator is No (N) if the imbalance is 2,000 dth or greater Cashout Quantity - There is no Cashout Quantity for the current month (Month 1). At the end of the 5-business day period after the invoice is issued, any remaining Month 1 imbalance in excess of 5% will be cashed out to 5%. Cashout PPA - If there is a PPA Applied quantity, there is no Month 1 PPA cashout quantity as the PPA has been used to reduced the imbalance for the month. There may be a Cashout PPA in the next month from the PPA Carried Forward quantity Ending Imbal - Imbal Before Cashout minus Cashout Quantity 3 Imbalance Before Trading - Imbalance Before Netting minus the Netted Quantity 12 Ending Imbal % - Ending Imbal divided by the Imbalance Calculation Denominator 4 5 Imbal % Before Trading - Imbal Before Trading divided by Imbalance Calculation Denominator Trade Quantity - reallocation of imbalances from Shipper to another Shipper to reduce the total amount of the imbalances for each Shipper 13 PPA Carried Forward - Prior Period Adjustment is carried forward to the next month because it would have increased the imbalance. If the PPA that was carried forward is part of cashout to 5%, the PPA is cashed-out at 100% of index to protect the PPA from being penalized 6 PPA Applied - Prior Period Adjustment applied to the current month imbalance. It is only applied if it reduces the imbalance 17

18 Shipper Imbalance Activity Report LAST UPDATED: El Paso Natural Gas Company Shipper Imbalance Statement Imbalance Activity 2 All Quantities in MMBtu Accounting Period: August 2007 Statement Recipient ID: XYZ Company Business Month: July 2007 Contact: Customer Service (877) Negative = Due Shipper Positive = Due EPNG SQID (Small Imbal Imbal % Imbal Imbal % PPA Busn Cashout Rate Delv Netted Quantity Before Before Trade PPA Before Before Cashout Cashout Ending Ending Carried Month Contract Type Sched Month Quantity Imbal Dth) Trading Trading Quantity Applied Cashout Cashout Quantity PPA Imbal Imbal % Forward Jul-07 FT4XZ000 FT-1 Jun-07 0 Y % % % 0 Jul-07 IT2XY000 IT-1 Jul-07 1,000 N % % % 0 Jul-07 FT4XX000 FT-1 Jul-07 0 N % % % 0 Jul-07 FT4XZ000 FT-1 Jul-07 (1,000) N 5, % (500) 0 4, % 0 0 4, % 1,000 FT4XZ000 FT-1 MidMonth calcs Aug-07 FT4XZ000 M FT-1 Jul-07 0 N 3, % 0 0 3, % 1, , % 18

19 Shipper Imbalance Daily Summary - Current Overview The previous Shipper Imbalance Daily Summary included both current month activity and Makeup Received (MR) and Makeup Delivered (MD) applied to prior months during the current month. The Current month activity is now on a separate page of the report. Changes from the Monthly Imbalance Statement The Daily Summary - Current Imbalance Activity Report only shows current month activity The headings have changed Moved MMBtu to Title Heading Things to Note Gross - Quantity scheduled at a receipt location Fuel - Fuel deducted for transport across the pipeline Net - Gross Allocated Receipt minus Fuel is the scheduled quantity delivered at a location Allocated Delivered - Allocated volumes delivered on contract for the current month (scheduled quantities plus allocated measurement (DA s)) Daily - Allocated Delivery minus Net Allocated Receipt Cumulative - Cumulate daily imbalances throughout the month 19

20 Shipper Imbalance Daily Summary - Current LAST UPDATED: El Paso Nat ural Gas Company Shipper Imbalance Statement Daily Summary All Quantities in MMBtu Statement Recipient ID: XYZ Company Accounting Period: August 2007 Contact: Customer Service (877) Business Month: July 2007 Contract: FT4XZ000 Negative = Due Shipper Positive = Due EPNG Daily Summary - Current Imbalance Activity Quantity Scheduled Receipt Imbalance Delivery Date Gross Fuel Net Allocated Delivery Daily Cumulative 7/1/2007 5,000 (144) 4,857 5, /2/ ,000 (287) 9,713 10, /3/2007 6,000 (172) 5,828 6, /4/2007 7,000 (201) 6,799 6,000 (799) (196) 7/5/2007 9,000 (258) 8,742 6,000 (2,742) (2,938) 7/6/2007 2,000 (57) 1,943 2, (2,881) 7/7/ ,800 (310) 10,490 9,000 (1,490) (4,371) 7/8/2007 7,000 (201) 6,799 7, (4,170) 7/9/2007 4,500 (129) 4,371 5, (3,541) 7/10/2007 4,500 (129) 4,371 5, (2,912) 7/11/2007 1,000 (29) 971 1, (2,883) 7/12/2007 5,000 (144) 4,857 4,000 (857) (3,739) 7/13/2007 4,000 (115) 3,885 3,000 (885) (4,625) 7/14/ ,000 (316) 10,684 5,000 (5,684) (10,309) 7/15/2007 4,000 (115) 3,885 4, (10,194) 7/16/2007 4,000 (115) 3,885 5,000 1,115 (9,079) 7/17/2007 4,000 (115) 3,885 4, (8,964) 7/18/2007 4,000 (115) 3,885 3,000 (885) (9,850) 7/19/2007 8,000 (230) 7,770 7,000 (770) (10,620) 7/20/2007 8,000 (230) 7,770 7,100 (670) (11,290) 7/21/2007 8,000 (230) 7,770 7,200 (570) (11,861) 7/22/2007 8,000 (230) 7,770 7,300 (470) (12,331) 7/23/2007 8,000 (230) 7,770 7,400 (370) (12,702) 7/24/2007 8,000 (230) 7,770 7,100 (670) (13,372) 7/25/2007 8,000 (230) 7,770 7,000 (770) (14,142) 7/26/2007 8,000 (230) 7,770 6,900 (870) (15,013) 7/27/2007 8,000 (230) 7,770 5,000 (2,770) (17,783) 7/28/2007 8,000 (230) 7,770 14,000 6,230 (11,554) 7/29/2007 8,000 (230) 7,770 16,000 8,230 (3,324) 7/30/2007 8,000 (230) 7,770 8, (3,094) 7/31/2007 8,000 (230) 7,770 16,865 9,095 6, ,800 (5,935) 200, ,865 6,000 20

21 Shipper Imbalance Daily Summary - Other Overview Makeup Received (MR) and Makeup Delivered (MD) transactions separated from the Daily Summary report The MR transactions shown are reflected on the Imbalance Activity pages. The MD and PPA transactions are merely sample transactions to show how they will appear in the Daily Summary. Things to Note 1 2 MRs - Scheduled from a valid receipt location into SYSTEM; includes makeup Received and Flow Day Diversion Payback MDs - Scheduled from SYSTEM to a valid delivery location 3 PPAs - Prior Period Adjustment 21

22 Shipper Imbalance Daily Summary - Other El Paso Natural Gas Co mpany Shipper Imbalance Statement Daily Summary All Quantities in MMBtu LAST UPDATED: Statement Receipent ID: XYZ Company Contact: Customer Service (877) Accounting Period: August 2007 Business Month: July 2007 Negative = Due Shipper Contract: FT4XZ000 Positive = Due EPNG Daily Summary - Other Quantity Scheduled Receipt Imbalance Delivery Payback Allocated Date Month Gross Fuel Net Delivery Daily MRs 1 7/8/2007 Jun (5) 400 (400) 7/9/2007 Jun (5) 400 (400) Total Other MRs 0 (10) (800) 2 MDs 7/6/2007 Jun Total Other MDs PPAs 3 03/1/07 (402) (402) Total Other PPAs (402) (402) 22

23 Shipper Imbalance Daily Detail Overview The Daily Detail allows the shipper to view the daily transactions during the month. Transactions on 07/01/07 are reflected on previous Imbalance Statement Imbalance Activity pages. The remaining transactions are merely samples of some of the other types of transactions. Changes from the Monthly Imbalance Statement The report displays individual days instead of groups of days based on how a transaction was scheduled Headings have changed Columns have been added Things to Note - Examples of Transactions Scheduled Forward Haul Transaction DA-Delivery Adjustment Transaction, represents allocation to measurement 07/1/07 overpull of 144 MR-Makeup Received Transaction; gas owed to EPNG on Shipper s contract scheduled from valid receipt point to System FDD (Flow Day Diversion) transaction FR-Flowday Diversion Transaction to makeup imbalance due EPNG on Shipper s contract; transaction diverts gas scheduled to Shipper s location on Shipper s agreement with the imbalance due EPNG MD-Makeup Delivered Transaction; gas owed to Shipper on Shipper s contract scheduled from System to valid delivery point Scheduled Delivered Transaction; generated when the upstream operator underconfirms after the last confirmation period when capacity has already been allocated Scheduled Received Transaction; generated when the downstream operator underconfirms after the last confirmation period w hen capacity has already been allocated End of Month Netting Transaction; reflects Shipper s contract netting activity 10 End of Month Trading Transaction; reflects Shipper s activity to trade imbalances with another Shipper 23

24 Shipper Imbalance Daily Detail El Paso Natural Gas Company LAST UPDATED: Shipper Imbalance Statement Daily Detail All Quantities in MMBtu Accounting Period: August 2007 Statement Recipient ID: XYZ Company Business Month: July 2007 Contact: Customer Service (877) Contract: FT4XZ000 Negative = Due Shipper Positive=Due EPNG MR/MD Svc Delivery Recv Delv Scheduled Receipt Allocated Imbalance Payback Adj# Req Up Up Date Location Location Path Transaction Type Desc Gross Fuel Net Delv Qty Qty M onth R/S Pkg Down Contract Down ID Code 07/01/ NS3 Current Business-FH 5,000 (144) 4,857 4, ABC ABC Company BLANCO CUSTDRN /01/ NS3 Delivery Adjustment-DA ABC ABC Company SYSTEM CUSTDRN /01/ Imbal Payback to-mr 206 (6) (200) 3 BLANCO SYSTEM Total for 07/01/07 5,206 (150) 5,056 5,000 (56) 07/03/ Flowday Diversion 10, ,000 10,000 0 CUSTDRN1 CUSTLOC2 Total for 07/03/07 10, ,000 10, /04/ FDD with Payback 10, ,000 0 (10,000) CUSTDRN1 SYSTEM Total for 07/04/07 10, ,000 0 (10,000) /06/ Imbal Payback to-md Feb-07 SYSTEM CUSTDRN Total for 07/06/ /07/ Scheduled Delivered 2,017 2,017 SYSTEM CUSTDRN Total for 07/07/ ,017 2, /08/ Scheduled Received ( 250) BLANCO SYSTEM Total for 07/08/ (250) 07/31/ Current Business-TR ,500 NET 9 IT2XY000 XYZ Company IMBALANC 07/31/ Current Business-TR ,000 TRAD FGH Company IMBALANC 8 24

25 SOC/COC 25

26 SOC COC Operational Data Purpose The SOC/COC screens provide operational flow data during a Strained Operating Condition (SOC) or Critical Operating Condition (COC). The data is shown at a daily and at an hourly level and is based on allocated data at the location. See EPNG Tariff General Terms and Conditions Sec. 33. The SOC/COC screen changes shown here are scheduled for implementation Fall Where to Find Passport Flowing Gas SOC/COC Menu item Available Formats Online View Print Report Exportable to Excel or Adobe Acrobat (.pdf) Things to Note Agmt Code - Contract to which the imbalance is allocated Scheduled - Scheduled quantity at the location for the day Estimated Delivery - based on VISA data Preliminary Allocated Imbalance - the Estimated Delivery minus the Scheduled quantity Catch-up Nom - available during an SOC to reduce the prior day s imbalance for penalty calculation purposes. Application is subject to certain conditions listed in Section 33.1 (f) and is not available during an COC. Preliminary Imbalance Percent - the Preliminary Allocated Imbalance divided by the Scheduled quantity Imbalance After Catch-up Nom - the Preliminary Allocated Imbalance on a day less the Catch-up Nom entered for the next gas day. In the example, it is Preliminary Allocated Imbalance of 22,534 less the Catch-up Nom of 20,000 scheduled on the next day Notice # - EBB Notice number Del Date - Delivery Date of the SOC/COC event Condition - SOC Draft, SOC Pack, COC Draft, COC Pack Emergency - COC condition in the event of an emergency situation where safety or overall system integrity is at immediate risk Threshold percent - percentage of scheduled quantities determined by the operational judgment of El Paso based on the severity of the pipeline conditions necessitating the SOC/COC. DRN - Data Reference Number assigned to identify specific location (DCode) Location Description - Proprietary 8-digit description of point Imbalance Percent After Catch Up Nom - the Imbalance After Catch-up Nom divided by the Scheduled quantity Notice Eff Date - Effective date of Condition as stated on the EBB notice Notice End Date - End date of the Condition as stated on the EBB notice Error Message - If a system outage occurs on VISA where no readings are available. No Readings will be displayed in that hour s Error Message and the most recent hour where data existed will be posted as a proxy for the current hour flow. If VISA shows zero for the volume, zero will be reported for that hour. 26

27 SOC/COC Summary Screen SOC/COC Operational Flow Data for ABC Company Quantities in MMBtu Dat e/t ime_(tim e Stamp) Imbalance Imbalance Preliminary Preliminary After Percent Location Agmt Estimated Allocated Catch-up Imbalance Catch-up After Catch- Notice Eff Notice# Del Date Condition Emergency Threshold % DRN Description Code Scheduled Delivery Imbalance Nom Percent Nom Up Nom Date /1/2004 SOC Draft N 4% DTEST LOC ,616 62,150 22, % 2, % 10/1/ /2/2004 SOC Draft N 4% DTEST LOC ,100 79,100 9,213 20, % 9, % /3/2004 SOC Draft N 4% DTEST LOC , ,700 26, % 26, % On Passport, screen, scroll to the right to view the Notice End Date, and Error Message columns. 17 Notice End 18 Date Error Message 10/3/2004 Positive = draft, due EPNG Negative = pack, due Shipper 27

28 SOC/COC Screen Things to Note Hour - Hour of the day just completed (MCT) Scheduled - Latest scheduled quantity at this hour for this day Operational Flow - Daily rate of flow (from VISA) at that particular hour Current scheduled - Current scheduled quantity for the day as of the most recent scheduling cycle Balance to Deliver - Current Scheduled minus (sum of) Operational Hourly Flow ; i.e., the amount that can flow the rest of the day and Shipper not exceed Current Scheduled 4 5 Operational Hourly Flow - Operational Flow for the hour Balance of Day Estimated Flow - Current hour rate of flow times remaining hours in the day 12 Estimated Delivery - Operational Hourly Flow plus Balance of Day Estimated Flow, i.e, this is the gas that has flowed through the current hour of the day and is estimated to flow the remainder of the day 6 7 Preliminary Allocated Imbalance - Operational Flow minus Scheduled ; If NAES B Swing location, includes all scheduled volumes at the location for Swing contract (pending approval of the Rate Case Settlement) Error Message - If a system outage occurs on VISA where no readings are available, No reading will be displayed in that hour s Error Message and the most recent hour where data existed will be posted as a proxy for the current hour flow If VISA shows zero for the volume, zero will be reported for that hour Estimated Imbalance - Estimated Delivery minus Current Scheduled Preliminary Imbalance Percent - Estimated Imbalance divided by Current Scheduled 8 Data will be displayed for only the most recent hour 9 Data will be populated for each hour as it is completed 28

29 SOC/COC Detail Screen SOC/COC Hourly Operational Flow Data for ABC Company Quantities in MMBtu Date/Time: _(Time Stamp) Notice # 1052 Del Date 10/01/04 Condition SOC Draft Emergency N Threshold 4% DRN Desc DTEST LOC Agmt 9123 Notice Eff Date 10/01/ Preliminary 7 Operational Hourly Balance of Day Allocated Hour Scheduled Operational Flow Flow Estimated Flow Imbalance Error Message 9:00 AM 28,989 13, (15,281) 10:00 AM 28,989 13, (15,789) 11:00 AM 28,989 18, (10,089) 12:00 PM 28,989 30,000 1,250 25,000 1, ,159 25,000 Daily Activity Estimated Preliminary Current Scheduled Balance to Deliver Estimated Delivery Imbalance Imbalance Percent 28,989 25,830 28,159 (830) -2.9%

30 Contact Us Volume Analysis - Customer Service Customer Service Line Mary Sue McNeal Sue Mayher Troy Jackson