El Paso Natural Gas Company submits tariff filing per 154.204: MDO/MHO Non-Critical Penalty Rate Charge Filing and Variance Activity Report to be effective 4/1/2012 under RP12-367 Filing Type : 570

Ms. Kimberly D. Bose, Secretary July 31, 2012 Page 2 Non-Conforming Service Agreements Sections 154.1(d) and 154.112(b) of the Commissions regulations require pipelines to file any agreement that deviates in any material aspect from the form of service agreement in the pipelines tariff.4 As reaffirmed by the Commissions July 25, 2003 order modifying its negotiated rate policy, the Commission defines a material deviation as any provision of a service agreement that goes beyond the filling-in of the spaces in the form of service agreement with the appropriate information provided for in the tariff and that affects the substantive rights of the parties.5 The Commissions policy is that such material deviations may be acceptable if such deviations do not change the conditions under which service is provided and do not present a risk of undue discrimination.6 Consistent with the Commissions regulations regarding non-conforming agreements, Texas Eastern is submitting for review the SCT Service Agreement and the SS-1 Service Agreements (collectively referred to herein as the Liberty Service Agreements) (see Appendix B). The Liberty Service Agreements conform in all respects to the currently effective form of service agreement for Rate Schedule SCT or SS-1, as applicable, with the exception of one provision in each service agreement described in detail below. As a result of the permanent release by Atmos of SS-1 storage capacity under its Contract Nos. 400227 and 400243 (the Atmos Contracts), Liberty is assuming all of Atmos rights and obligations under those service agreements. The Atmos Contracts were previously approved by the Commission. Therefore, Texas Eastern respectfully requests that the Commission accept the applicable provisions in the Liberty Service Agreements described below as permissible deviations that do not present a risk of undue discrimination. Pursuant to Section 154.1(d) of the Commissions regulations, Texas Eastern submits herewith for filing, as part of its Tariff, a revised version of Section 3.18 of the General Terms and Conditions (GT&C) to include the Liberty Service Agreements as non-conforming agreements and to delete the Atmos Contracts. Texas Eastern is also submitting the Liberty Service Agreements as Sections 11 through 13 of its Filed Agreements Tariff. A marked version of the tariff records filed herewith is attached, including a marked version of the executed SCT Service Agreement and the executed SS-1 Service Agreements against the currently effective version of the form of service agreement for the applicable rate schedule. Deviations Omission of Evergreen and Notice Provisions: Section 3 in the body of the SCT Service Agreement ...