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. 39 Original Sheet No. 39

ISS RATE SCHEDULE

INTERRUPTIBLE STORAGE SERVICE

(Continued)

6.2 TRES PALACIOS shall have the right to propose to FERC or

any other governing regulatory body such changes in its rates and

terms of service as it deems necessary, and the Interruptible

Storage Service Agreement executed by the parties shall be deemed

to include any changes which are made effective pursuant to order

or regulation or provisions of law, without prejudice to

Customer's right to protest the same; provided however, that any

market-based rates negotiated between TRES PALACIOS and its

Customer(s) shall remain in effect during the term(s) of the

Interruptible Storage Service Agreement(s) specifying such rates.

7. CURTAILMENT

If, due to any cause whatsoever, TRES PALACIOS' capability to

receive or deliver quantities of Gas is impaired so that TRES

PALACIOS is unable to receive or deliver the quantities provided

for in its Storage Service Agreements with Customers for

Interruptible services, then capacity, withdrawals and/or

injections will be allocated according to the priority of service

as set forth in Section 5 of the General Terms and Conditions of

this FERC Gas Tariff.

8. EXPIRATION OF TERM

8.1 Upon expiration without renewal or upon termination of

Customer's Interruptible Storage Service Agreement, any of

Customer's Gas remaining in the TRES PALACIOS storage facility

shall be deemed sold to TRES PALACIOS at a price equal to 80% of

the price realized for such Gas pursuant to an auction held in

accordance with Section 32 of the General Terms and Conditions of

this FERC Gas Tariff. However, if Customer was unable to withdraw

its ISS Gas quantities due to an interruption of Customer's

withdrawal service by TRES PALACIOS during the last ten Days

before termination, Customer shall be allowed to withdraw its Gas

within a reasonable period following the end of the contract term.

8.2 Payment for the remaining quantities of Gas shall appear

as a credit on the last statement rendered by TRES PALACIOS to

Customer. To the extent that the credit exceeds the total charges

in that statement, the difference shall be paid by TRES PALACIOS

to Customer on or before the 25th day of the Month following the

Month of such expiration or termination.

8.3 In the event that TRES PALACIOS purchases and takes

title to any of Customer's Gas pursuant to this Section 8, TRES

PALACIOS shall dispose of such Gas by auction and shall credit the

net proceeds received from such auction in accordance with the

provisions of Section 32 of the General Terms and Conditions of

this FERC Gas Tariff.