Tres Palacios Gas Storage LLC

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 126 Original Sheet No. 126

GENERAL TERMS AND CONDITIONS

(Continued)

The amount of capacity allocated to the Replacement

Customer(s) shall equal the original released quantity less the

recalled capacity. This allocated daily contractual quantity

shall be used for purposes of nominations, billing, and, if

applicable, for overrun calculations. As a result of the

allocation of capacity described in this Section, TRES PALACIOS

shall not be obligated to deliver a combined quantity to the

Releasing Customer and the Replacement Customer(s) that is in

excess of the total daily contract quantity of the release.

(g) Reput Provisions. TRES PALACIOS shall support the

function of reputting by the Releasing Customer. The Releasing

Customer may reput previously recalled capacity to the Replacement

Customer pursuant to the reput rights and methods identified in

the Releasing Customer's Notice to release capacity, as required

by Section 4.1(g). When capacity is recalled, such capacity may

not be reput for the same Day. The deadline for the Releasing

Customer to notify TRES PALACIOS of a reput of capacity is 8:00

A.M. CCT to allow the Replacement Customer to submit timely

nominations for gas to flow on the next Day.

(h) Following the awarding of capacity to a Replacement

Customer in accordance with the procedures provided in this

Section 4, the Releasing Customer's rights and TRES PALACIOS'

obligations under the Releasing Customer's Storage Service

Agreement shall be modified and subject to the capacity rights

released and assigned to the Replacement Customer for the term of

such release. Effecting a release pursuant to the provisions of

this Section 4 shall constitute Releasing Customer's consent and

agreement to such amendment or modification of its existing

Storage Service Agreement.

(i) The offer to release by a Customer under Rate

Schedules FSS, NNSS, FP or FL must specify the quantities of MDDQ,

MDRQ, MSQ (or No-Notice Maximum Daily Quantity, Maximum Park

Quantity or Maximum Loan Quantity, as applicable), MDIQ, MDWQ or

rights offered, and actually available on the effective date of

the assignment, and the exercise of which rights, in conjunction

with Releasing Customer's exercise of its retained rights, will

not violate any maximum or minimum quantity requirements or

limitations applicable under the Rate Schedule or the respective

Storage Service Agreements. Releasing Customer shall be

responsible for ensuring that the Firm Storage Service quantities

offered for release shall be available upon the commencement of

the release, in accordance with the terms and conditions of the

applicable Rate Schedule. A Replacement Customer under Rate

Schedules FSS, NNSS, FP or FL shall be responsible for arranging

transportation to and from the Point(s) of Receipt and Point(s) of

Delivery consistent with its rights and obligations under its

Storage Service Agreement and Rate Schedules FSS, NNSS, FP or FL.

The Replacement Customer must comply with all obligations imposed

under such Rate Schedule and its rights to store, withdraw and/or

inject Gas will be subject to the provisions thereof. If the

Releasing Customer proposes to, or requires a transfer-in-place of

the portion of its Storage Inventory in conjunction with its

release and assignment of storage capacity rights, it shall so

specify in its offer to release and such transfer shall be

implemented contemporaneously with