Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 11 Original Sheet No. 11

IHBS RATE STATEMENT - INTERRUPTIBLE HOURLY BALANCING

SERVICE*

RATE UNITS

Hourly Balancing Market Based/ $/Dth

Charge Negotiable

Payment shall be equal to the Hourly Balancing Charge specified in

Customer's executed Interruptible Hourly Balancing Service

Agreement multiplied by the Dth of Customer's hourly balancing

quantity, such amounts summed for all hours in a given Month.

Storage Inventory Market Based/ $/Dth

Charge Negotiable

Payment shall be equal to the Storage Inventory Charge specified

in Customer's executed Interruptible Hourly Balancing Service

Agreement multiplied by the Dth quantity of Customer's Storage

Inventory at the end of each Day, such amounts summed for all Days

in a given Month.

Storage Injection Market Based/ $/Dth

Charge Negotiable

Payment shall be equal to the Storage Injection Charge specified

in Customer's executed Interruptible Hourly Balancing Service

Agreement multiplied by the Dth quantity Customer shall have

delivered to TRES PALACIOS for injection into storage for each Day

during a given Month.

Storage Withdrawal Market Based/ $/Dth

Charge Negotiable

Payment shall be equal to the Storage Withdrawal Charge specified

in Customer's executed Interruptible Hourly Balancing Service

Agreement multiplied by the Dth quantity TRES PALACIOS shall have

withdrawn from storage for Customer's account for each Day during

a given Month.