El Paso Natural Gas 10-Q 2009 Q2 Quarterly report

Exhibit 12
EL PASO NATURAL GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
	For the Six Months Ended June 30,
	2009		2008
Earnings
Pre-tax income	$	113	$	118
Fixed charges		46		46
Totals earnings available for fixed charges	$	159	$	164
Fixed charges
Interest and debt costs	$	46	$	46
Ratio of earnings to fixed charges		3.5		3.6

For purposes of computing these ratios, earnings means pre-tax income before:

 - fixed charges;

less 

 - allowance for funds used during construction, which was not material for the six months

    ended June 30, 2009 and 2008.

Fixed charges means the sum of the following:

 - interest costs, not including interest on tax liabilities which is included in income tax expense on our income statement;

 - amortization of debt costs; and

 - that portion of rental expense which we believe represents an interest factor, which was not material for the six months

    ended June 30, 2009 and 2008.