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. 131 Original Sheet No. 131

GENERAL TERMS AND CONDITIONS

(Continued)

PALACIOS shall provide, via posting on the Internet Web Site and

to affected parties through the affected party's choice of

electronic notice delivery mechanism(s), prior notice to all

Customers and point operators of upcoming system events such as

anticipated weather patterns and operational problems that may

necessitate the issuance of an Action Alert or OFO.

(d) Applicability of Action Alert or OFO: TRES

PALACIOS shall make an Action Alert or OFO as localized as is

reasonably practicable based on TRES PALACIOS' good faith and

reasonable judgment concerning the situations requiring

remediation such that an Action Alert or OFO will be directed

first to Customers and point operators causing the problem

necessitating the Action Alert or OFO and second, if necessary, to

all Customers and point operators. TRES PALACIOS will tailor the

Action Alert or OFO to match the severity of the known or

anticipated operational problem requiring remediation as more

fully set forth in subsections 5.5(f) and 5.5(g). The declaration

to the affected parties of OFOs, critical periods and/or Critical

Notices shall describe the conditions and the specific responses

required from the affected parties.

(e) Notice: All Action Alerts and OFOs will be issued

via telephone to be followed by a facsimile to the affected

Customer(s) or point operator(s), with subsequent posting on the

Internet Web Site, and notification to the affected parties

through the affected party's choice of electronic notice delivery

mechanism(s). TRES PALACIOS shall also provide such notification

via e-mail communication to those Customers and point operators

that have provided e-mail address information for at least one

contact person, and have requested via TRES PALACIOS' Internet Web

Site, e-mail notification of Critical Notices issued by TRES

PALACIOS. The Action Alert or OFO will set forth (1) the time and

date of issuance, (2) the actions Customer or point operator is

required to take, (3) the time by which Customer or point operator

must be in compliance with the Action Alert or OFO, (4) the

anticipated duration of the Action Alert or OFO, and (5) any other

terms that TRES PALACIOS may reasonably require to ensure the

effectiveness of the Action Alert or OFO. In addition to the

other information contemplated by this Section 5.5(e), such notice

shall also include information about the status of operational

variables that determine when an Action Alert or OFO will begin

and end, and TRES PALACIOS shall post periodic updates of such

information, promptly upon occurrence of any material change in

the information. TRES PALACIOS will post a notice on the Internet

Web Site informing the Customers and point operators when any

Action Alert or OFO in effect will be lifted and specifying the

factors that caused the Action Alert or OFO to be issued and then

lifted, to the extent such factors are known. TRES PALACIOS shall

post a notice on its Internet Web Site specifying the factors that

caused the Action Alert or OFO to be issued, to the extent such

factors are known. TRES PALACIOS shall also provide such

notification via e-mail communication to those Customers who have

submitted a request and provided e-mail address information for at

least one contact person, via TRES PALACIOS' Internet Web Site to

receive e-mail notification of Critical Notices issued by TRES

PALACIOS.