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. 44 Original Sheet No. 44

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

(Continued)

(c) Storage Injection Charge. A usage charge for each

Dth of Customer's Gas injected into TRES PALACIOS' facilities

pursuant to Section 2.1(a) of this Rate Schedule.

(d) Storage Withdrawal Charge. A usage charge for each

Dth of Customer's Gas withdrawn from TRES PALACIOS' facilities

pursuant to Section 2.1(c) of this Rate Schedule.

(e) Fuel Reimbursement. The amount of Gas for fuel and

losses determined in accordance with Section 19 of the General

Terms and Conditions of this FERC Gas Tariff and set forth in

Customer's Interruptible Hourly Balancing Service Agreement.

(f) Regulatory Fees and Charges. Customer shall

reimburse TRES PALACIOS for all fees and charges, as required by

the Commission or any other regulatory body, that are related to

service provided under this Rate Schedule, as set forth in

Customer's Interruptible Hourly Balancing Service Agreement.

(g) Taxes. Customer shall reimburse TRES PALACIOS for

all applicable taxes as may be assessed TRES PALACIOS, as set

forth in Section 15 of the General Terms and Conditions of this

FERC Gas Tariff and in Customer's Interruptible Hourly Balancing

Service Agreement.

4. INVOICE

Each invoice for Interruptible hourly balancing service shall

reflect the applicable charges set forth under Section 3 of this

Rate Schedule, at rates set forth in Customer's Interruptible

Hourly Balancing Service Agreement.

5. TERM

The term for service under this Rate Schedule shall be as set

forth in the executed Interruptible Hourly Balancing Service

Agreement.

6. AUTHORIZATION, RATES, TERMS AND CHANGES

6.1 The Interruptible Hourly Balancing Service Agreement and

the respective obligations of the parties hereunder are subject to

all valid laws, orders, rules and regulations of duly constituted

authorities having jurisdiction, and are conditioned upon the

issuance, by FERC, and any state or local governmental agency

having jurisdiction, of requisite authorization for TRES PALACIOS

to provide the storage service contemplated hereby and to

construct and operate the facilities necessary to provide such

service and for any connected pipeline to transport Gas to/from

the Point(s) of Receipt/Delivery necessary to effect the service

provided for herein.