Tres Palacios Gas Storage LLC

Original Volume No. 1

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

First Revised Sheet No. 119 First Revised Sheet No. 119

Superseding: Original Sheet No. 119

GENERAL TERMS AND CONDITIONS

(Continued)

TRES PALACIOS shall post offers and bids, including pre-arranged

deals, upon receipt, unless Releasing Customer requests otherwise.

If Releasing Customer requests a posting time, TRES PALACIOS

shall support such request insofar as it comports with the

standard timeline. A Releasing Customer cannot specify an

extension of the original bid period or the pre-arranged deal

match period, without posting a new release.

4.4 Pre-arranged Releases. Releasing Customer may

designate an entity (a designated "Pre-arranged Replacement

Customer") to which it has agreed to release the capacity upon

specified terms and conditions. Customer's offer to release under

such a pre-arranged transaction shall be subject to the prior

posting and bidding procedures described in Sections 4.5 and 4.6,

herein, with the designated Pre-arranged Replacement Customer

being given a right to match the best bid submitted during the bid

period; provided, however, if a pre-arranged transaction with a

Pre-arranged Replacement Customer is for a period of thirty-one

(31) Days or less, to an asset manager (as defined by FERC

regulations at 18 C.F.R. 284.8(h)(3)) or to a marketer

participating in a state-regulated retail access program (as

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

Releasing Customer shall provide notice to TRES PALACIOS in

accordance with this Section and may implement the release without

complying with such prior posting and bidding procedures. Notices

of such exempted releases shall be posted on the Internet Web Site

in accordance with Section 4.3 herein.

4.5 Posting. Following receipt of a notice of offer to

release capacity which satisfies the requirements set forth in

this Section, TRES PALACIOS will post such information on its

Internet Web Site in accordance with the timeline set forth in

Section 4.3 herein. TRES PALACIOS shall also post offers to

purchase capacity from those who desire current Customers to

release capacity upon receipt of the applicable information as set

forth in this Section.

4.6 Bidding and Selection of Replacement Customer.

(a) If Releasing Customer desires to solicit bids for

releases of thirty-one (31) Days or less, it may direct TRES

PALACIOS to post notice of the availability of such capacity and,

in lieu of permitting bids during the otherwise applicable posting

period, Releasing Customer may direct TRES PALACIOS to award the

capacity to the bidder which submits first in time a valid bid

meeting any minimum terms specified by the Releasing Customer.

(b) Any bid submitted by a prospective Replacement

Customer shall include an e-mail address for at least one contact

person, and it is the Customer's responsibility to update e-mail

address information provided to TRES PALACIOS, as necessary. A

bidder may not have more than one eligible bid for the same

release offer at any time. Bids shall be binding until written or

electronic notice of withdrawal is received by TRES PALACIOS

before the end of the bid period. Bids cannot be withdrawn after

the bid period ends. Once a bid is withdrawn, that bidder may only

submit a new bid pursuant to that release offer if it is at a

higher rate than the withdrawn bid.