FW: Proposed Rates for TGP's Rio Bravo Expansion

-----Original Message-----
From: "Troutman, Preston" <Preston.Troutman@ElPaso.com<@ENRON
Sent: Monday, November 19, 2001 1:16 PM
To: Concannon, Ruth
Subject: Proposed Rates for TGP's Rio Bravo Expansion

Proposal - Rio Bravo
Type of Service: FT-A

Transportation Quantity ("TQ"): 95,000 Dth/d

Term: 15 years from commencement of service

Primary Receipt Points(s): Mutually agreed upon points located south of
Tennessee's Compressor Station 1

Primary Delivery Point: A new interconnect with a proposed open
access pipeline in Mexico located approximately 9.6 miles southeast of
Tennessee's Alamo Compressor Station

Negotiated Demand: Years 1-10 Years 11-15
$0.0975 per Dth/day $0.0975 per Dth/day

The Negotiated Demand Rate is applicable to
Primary Receipt Point(s) and Secondary Receipt Point(s) for delivery to the
Primary Delivery Point.
The Negotiated Demand Rate is inclusive of
all applicable surcharges specified in TGP's currently effective FERC
approved gas tariff ("TGP Tariff"). The Negotiated Demand Rate shall also
apply to any Primary Receipt Point amendment(s) effectuated in Zone 0,
provided the amended Primary Receipt Point is south of Tennessee's Station
1, except as otherwise mutually agreed upon by both parties.

Negotiated Commodity Rate 1: Years 1-10 Years 11-15
$0.0050 per Dth $0.0150 per Dth

Negotiated Commodity Rate 1 is applicable to
the Primary Receipt Point(s) and Secondary Receipt Point(s) located south of
Tennessee's Station 1 for delivery to the Primary Delivery Point:

Negotiated Commodity Rate 2: Years 1-10 Years 11-15
$0.0250 per Dth $0.0350 per Dth

Negotiated Commodity Rate 2 is applicable to
Secondary Receipt Point(s) located north of Tennessee's Station 1 for
delivery to the Primary Delivery Point.

Other Conditions: Shipper shall pay the applicable fuel and
loss charges according to the currently effective TGP Tariff.

The total amount of Primary Receipt Point
capacity and Primary Delivery Point capacity shall be equal and the capacity
amount will equal the TQ described above.

TGP shall apply the maximum applicable
commodity rate under Rate Schedule FT-A, as well as the applicable fuel and
loss charges and surcharges, to any Secondary Receipt and/or Secondary
Delivery quantities that exceed the contract TQ specified above at any one
time.

The maximum Primary volume combined with
Secondary Receipt volume to which the Negotiated Commodity Rate applies is
90,000 Dth/day.

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