Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 08/01/2008, Docket: RP08-424-001, Status: Effective

Substitute Original Sheet No. 41 Substitute Original Sheet No. 41

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

1. AVAILABILITY

This Rate Schedule is available to any Customer for the

purchase of Interruptible hourly balancing storage service from

TRES PALACIOS, provided that:

(a) TRES PALACIOS has determined that it has

sufficient operationally available and uncommitted Interruptible

storage capacity and injection and withdrawal capacity to perform

the service Customer has requested;

(b) Customer and TRES PALACIOS have executed an

Interruptible Hourly Balancing Service Agreement under this Rate

Schedule;

(c) Customer accepts responsibility for arranging any

transportation service required for utilization of the storage

service provided under this Rate Schedule, including making any

necessary arrangements with pipeline Transporter(s) for Customer

to utilize hourly balancing service at one or more delivery points

on the Transporter's (s') pipeline system(s) (any such

arrangements for utilization of hourly balancing service must be

acceptable to TRES PALACIOS, in its reasonable judgment);

(d) TRES PALACIOS has determined that it can offer

Interruptible hourly balancing service between the Customer's

point(s) of delivery on the transporting pipeline(s) and TRES

PALACIOS' Point(s) of Delivery/Receipt;

(e) TRES PALACIOS has determined that the service

Customer has requested will not interfere with the efficient

operation of its system or with Firm Storage Services; and

(f) Service under this Rate Schedule may not be

available to the extent that TRES PALACIOS would be required to

construct, modify, expand or acquire any facilities to enable TRES

PALACIOS to perform the requested services.

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to all Interruptible hourly

balancing service rendered by TRES PALACIOS to Customer through

use of TRES PALACIOS' storage facility located in Texas pursuant

to an executed Interruptible Hourly Balancing Service Agreement.

2.1 Interruptible hourly balancing service rendered to

Customer under this Rate Schedule shall consist of:

(a) The receipt on any Day of Customer's Gas per Customer's

nomination up to the Maximum Daily Injection Quantity ("MDIQ") as

stated in Customer's executed Interruptible Hourly Balancing

Service Agreement, plus Fuel Reimbursement, at the Point(s) of

Receipt and the injection of Gas so received into storage,

provided that all Firm Storage Service nominations for injections

have been satisfied and Customer's Storage Inventory has not

exceeded Customer's Maximum Storage Quantity;