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. 101 Original Sheet No. 101

GENERAL TERMS AND CONDITIONS

(Continued)

2.11 "Elapsed Prorata Capacity" means that portion of

the capacity that would have theoretically been available for use

prior to the effective time of the intraday recall based upon a

cumulative uniform hourly use of the capacity.

2.12 "Elapsed-prorated-scheduled Quantity" shall mean

that portion of the scheduled quantity that would have

theoretically flowed up to the effective time of the intraday

nomination being confirmed, based upon a cumulative uniform hourly

quantity for each nomination period affected.

2.13 "FERC" or "Commission" means the Federal Energy

Regulatory Commission or any successor agency.

2.14 "Firm Storage Service" means any service under Rate

Schedules FSS, NNSS, FP or FL.

2.15 "Fuel Reimbursement" shall have the meaning set

forth in Section 19 of the General Terms and Conditions of this

FERC Gas Tariff.

2.16 "Gas" means natural gas in its natural state,

produced from wells, including casinghead gas produced with crude

oil, natural gas from gas wells and residue gas resulting from

processing both casinghead gas and gas well gas.

2.17 "Internet Web Site" means TRES PALACIOS' HTML site

accessible via the Internet's World Wide Web and located at

http:/www.trespalaciosgasstorage.com.

2.18 "Interruptible" means that the storage, parking,

wheeling, or loaning is subject to interruption at any time by

TRES PALACIOS. A Customer may be required to withdraw Gas held in

storage pursuant to Customer's Storage Service Agreement for

Interruptible service or Exhibit A of Customer's Hub Services

Agreement, or provide Gas to TRES PALACIOS, should such capacity

or quantities be required by a Firm Storage Service.

2.19 "Intraday nomination" means a nomination submitted

after the nomination deadline whose effective time is no earlier

than the beginning of the Day and runs through the end of that

Day.

2.20 "Loan Balance" means the quantity of Gas, expressed

in Dth, that TRES PALACIOS has loaned to Customer, provided that

the Loan Balance shall never exceed Customer's Maximum Loan

Quantity specified in Customer's Firm Loan Service Agreement or

Exhibit A of Customer's Hub Services Agreement.

2.21 "Maximum Daily Delivery Quantity" or "MDDQ"

means the maximum quantity of Gas, expressed in Dths, specified in

Customer's Storage Service Agreement (Exhibit A of the Hub

Services Agreement), that Customer may nominate and that TRES

PALACIOS shall deliver at a Point of Delivery, subject to Section

8.3 of these General Terms and Conditions.