Tres Palacios Gas Storage LLC

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 02/25/2009, Docket: RP09-260-000, Status: Effective

First Revised Sheet No. 114 First Revised Sheet No. 114

Superseding: Original Sheet No. 114

GENERAL TERMS AND CONDITIONS

(Continued)

4. CAPACITY RELEASE

Any Customer under Rate Schedules FSS, NNSS, FP or FL may seek

to release to others any or all of its firm service entitlements

on a full Day or an intraday basis, on a permanent or a temporary

basis, and on a firm or recallable basis, subject to the following

terms and conditions:

4.1 Notice of Offer. A Customer offering to release firm

service entitlements shall post the terms of its proposed release

on TRES PALACIOS' Internet Web Site by the posting deadline as

determined pursuant to Section 4.3 herein. If Customer is unable

to post such information on TRES PALACIOS' Internet Web Site,

Customer shall notify TRES PALACIOS via the Internet Web Site of

the terms of its offer, by the posting deadline as determined

pursuant to Section 4.3 herein, and TRES PALACIOS will post this

information on the Internet Web Site. The Customer may propose a

designated Pre-arranged Replacement Customer to which the capacity

would be released. Offers shall be binding unless written or

electronic notice of withdrawal is received by TRES PALACIOS prior

to the close of the applicable bid period; provided, however, such

withdrawal shall only be valid if such Customer has an

unanticipated requirement for such capacity and no minimum bid has

been made. The notice must contain the reason for withdrawal

which TRES PALACIOS shall post on the Internet Web Site. The

offer shall contain the following minimum information:

(a) Customer's legal name and the name/title of

individual who has authorized the offer to release;

(b) TRES PALACIOS' Storage Service Agreement number;

(c) A description of the capacity to be released,

including the Maximum Storage Quantity, No-Notice Maximum Daily

Quantity, Maximum Park Quantity or Maximum Loan Quantity, as

applicable, and the Maximum Daily Receipt Quantity, the Maximum

Daily Delivery Quantity, the Maximum Daily Injection Quantity, and

the Maximum Daily Withdrawal Quantity and the associated Point(s)

of Receipt and Point(s) of Delivery (Replacement Customer may

request changes to such Receipt and Delivery Point(s) subject to

the proposed release and subject to the daily quantity limitations

described in Section 4.2 below);

(d) The proposed effective date and term of the

release;

(e) The identity of any designated Pre-arranged

Replacement Customer (pursuant to Section 4.4), a statement as to

whether the Pre-arranged Replacement Customer is an asset manager

(as defined by FERC regulations at 18 C.F.R. 284.8(h)(3)) or

marketer participating in a state-regulated retail access program

(as defined by FERC regulations at 18 C.F.R. 284.8(h)(4)), and

the full terms of such pre-arranged release;

(f) The method to be applied in evaluating bids,

allocating capacity and breaking ties, as described below;