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. 42 Original Sheet No. 42

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

(Continued)

(b) The storage of Gas in amounts up to the Interruptible Maximum

Storage Quantity, as stated in Customer's executed Interruptible

Hourly Balancing Service Agreement, provided that all Firm Storage

Service requests to utilize Storage Inventory have been satisfied;

(c) The withdrawal from storage on any Day of Customer's Gas per

Customer's nomination up to the Maximum Daily Withdrawal Quantity

("MDWQ") as stated in Customer's executed Interruptible Hourly

Balancing Service Agreement and the delivery of such Gas to the

Point(s) of Delivery, provided that all Firm Storage Service

nominations for withdrawal have been satisfied and Customer has a

quantity of Gas in Customer's Interruptible Storage Inventory not

less than the quantity Customer shall have nominated for

withdrawal on such Day; and

(d) For each hour during a Day, subject to the maximum hourly

limit as set forth in Customer's Interruptible Hourly Balancing

Service Agreement, the receipt or delivery by TRES PALACIOS at the

Point(s) of Receipt/Delivery designated by Customer of hourly

balancing quantities of Gas which shall be the difference, on an

hourly basis, between (i) the injections to or withdrawals from

TRES PALACIOS' storage of Gas as nominated by Customer to meet

Customer's desired hourly pattern of deliveries at its delivery

point(s) on the Transporter's (s') pipeline system(s) and (ii)

Customer's ratable flow quantities on TRES PALACIOS' system (1/24

of Daily nominated quantities); provided that all Firm Storage

Service nominations have been satisfied and that hourly balancing

quantities shall not cause Customer's Interruptible Storage

Inventory to exceed the Maximum Storage Quantity set forth in

Customer's Interruptible Hourly Balancing Service Agreement or to

be less than zero (0).

2.2 Hourly balancing quantities must be nominated and

scheduled pursuant to this Rate Schedule and Section 8 of the

General Terms and Conditions of this FERC Gas Tariff. In addition

to the day-ahead and intraday nominations provided for in Section

8 of the General Terms and Conditions, Customer shall be permitted

to submit nominations for hourly balancing quantities, and to

adjust its hourly balancing quantity nominations within a Day by

providing not less than one hour notice to TRES PALACIOS before

the start of an hour for which Customer requests to change a

nomination, provided that such hourly nominations, including

changes in hourly nominations, are subject to confirmation with

the transporting pipeline. Interruptible Hourly Balancing Service

is not intended to serve as an Operational Balancing Agreement to

account for hourly deviations between scheduled volumes and

volumes actually taken by Customer at its point(s) of delivery on

the transporting pipeline(s). Such deviations shall be subject to

reconciliation pursuant to the Customer's transportation

agreement(s) with its pipeline Transporter(s) and the pipeline

Transporter's (s') tariff(s).