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. 43 Original Sheet No. 43

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

(Continued)

2.3 In the event Customer desires to use Interruptible

balancing service for balancing at more than one delivery point on

Transporters' pipeline systems under its Interruptible Hourly

Balancing Service Agreement, hourly balancing quantities for each

such delivery point shall be separately determined, nominated and

used for purposes of billing Hourly Balancing Charges.

2.4 To the extent Interruptible storage capacity which is

being utilized by an Interruptible Customer hereunder is needed by

TRES PALACIOS in order to satisfy TRES PALACIOS' obligations to

Firm Storage Service Customers, TRES PALACIOS shall require

Customer to withdraw all, or any portion of, the IHBS Gas

quantities held in storage by TRES PALACIOS for the account of

Customer as specified by TRES PALACIOS. Unless TRES PALACIOS

otherwise agrees, Customer shall be required to make ratable

withdrawals. If Customer fails to withdraw such IHBS Gas from

storage, TRES PALACIOS may take, free and clear of any adverse

claims, title to such IHBS Storage Inventory as Customer was

instructed to withdraw. TRES PALACIOS' notice to Customer may be

given orally, but shall be confirmed in writing via e-mail or

facsimile to the Customer.

In the event that TRES PALACIOS retains and takes title to any

of Customer's Gas pursuant to this Section, TRES PALACIOS shall

credit the value of such Gas, net of any costs incurred by TRES

PALACIOS to take title to and/or resell such Gas, in accordance

with the provisions of Section 32 of the General Terms and

Conditions of this FERC Gas Tariff.

In the event TRES PALACIOS needs to require Customer to

withdraw its Gas from storage pursuant to this Section, TRES

PALACIOS shall provide day-ahead notice to Customer that it must

withdraw Gas at its MDWQ during the next Gas Day. TRES PALACIOS

shall repeat this notice on a daily basis until all of Customer's

Gas is withdrawn from storage or until the circumstances

necessitating interruption are alleviated. In the event Customer

makes a timely nomination in response to a notification by TRES

PALACIOS pursuant to this paragraph, Customer's obligation to

comply with that notification shall be tolled until such time as

TRES PALACIOS' operational conditions allow TRES PALACIOS to

schedule the nomination.

3. RATES AND CHARGES

Customer shall pay rates and charges for Interruptible hourly

balancing service under this Rate Schedule including the

applicable storage rate components set forth in the IHBS Rate

Statement and as described below:

(a) Hourly Balancing Charge. A usage charge for each

Dth of hourly balancing quantities injected to or withdrawn from

storage for Customer's account pursuant to Section 2.1(d) of this

Rate Schedule.

(b) Storage Inventory Charge. A usage charge for each

Dth of Gas in Customer's Storage Inventory pursuant to Section

2.1(b) of this Rate Schedule at the end of each Day, for each Day

during a given Month.