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. 134 Original Sheet No. 134

GENERAL TERMS AND CONDITIONS

(Continued)

(j) Liability of TRES PALACIOS: TRES PALACIOS shall

not be liable for any costs incurred by any Customer or point

operator in complying with an Action Alert or OFO. TRES PALACIOS

shall not be responsible for any damages that result from any

interruption in service that is a result of a Customer's or point

operator's failure to comply promptly and fully with an Action

Alert or OFO, and the non-complying Customer or point operator

shall indemnify TRES PALACIOS against any claims of

responsibility. However, TRES PALACIOS shall use reasonable

efforts to minimize any such costs or damages.

(k) Unilateral Action: In the event that (l)

Customer(s) or point operator(s) does (do) not respond to an OFO,

or (2) the actions taken thereunder are insufficient to correct

the system problem for which the OFO was issued, or (3) there is

insufficient time to carry out the procedures with respect to

OFOs, TRES PALACIOS may take unilateral action, including the

curtailment of firm service, to maintain the operational integrity

of TRES PALACIOS' system. For purposes of this Section, the

operational integrity of TRES PALACIOS' system shall encompass the

integrity of the physical system and the preservation of physical

assets and their performance, the overall operating performance,

the overall operating performance of the entire physical system,

as an entity, and the maintenance (on a reliable and operationally

sound basis) of total system deliverability and the quality of Gas

delivered.

6. STORAGE OPERATIONS

6.1 Customer shall tender or cause to be tendered to

TRES PALACIOS at the Point(s) of Receipt any Gas which Customer

desires to have injected into storage plus applicable Fuel

Reimbursement volumes. Customer shall also receive or cause to be

received Gas requested to be withdrawn from storage at the

Point(s) of Delivery.

6.2 Subject to the operating conditions then existing

on the delivering or receiving pipelines, TRES PALACIOS shall

receive Gas for injection from Customer at the Point(s) of Receipt

and deliver Gas to Customer at the Point(s) of Delivery as

scheduled by Customer from time to time; provided that TRES

PALACIOS shall not be obligated to receive for injection any

quantity of Gas if the injection of the same would cause the

quantity of Gas stored for Customer's account to exceed Customer's

Maximum Storage Quantity; nor shall TRES PALACIOS be obligated at

any time to deliver more Gas to Customer than Customer has stored

in its Storage Inventory or Park Balance, as applicable, or to

receive from Customer more Gas than Customer has outstanding in

its Loan Balance.