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. 127 Original Sheet No. 127

GENERAL TERMS AND CONDITIONS

(Continued)

the release and assignment subject to compliance with the

provisions of Section 20 of these General Terms and Conditions.

The Replacement Customer must withdraw the portion of its Maximum

Storage Quantity by the end of the term of the release. In lieu

of withdrawing the portion of its Storage Inventory, the

Replacement Customer can also attempt to effect a transfer of the

portion of its Storage Inventory to another storage service

Customer as provided in Section 20 of these General Terms and

Conditions. If the Replacement Customer fails to withdraw or

transfer the portion of its Storage Inventory by the end of the

term of its release, title to the portion of Customer's remaining

Storage Inventory will be vested, at no cost, in the Releasing

Customer which released its capacity to the Replacement Customer

on a temporary basis.

4.14 TRES PALACIOS' Rights to Terminate Temporary

Capacity Releases.

(a) In the event of a temporary release for which (1)

TRES PALACIOS has given notice of termination of the Releasing

Customer's Storage Service Agreement pursuant to Section 28 of

these General Terms and Conditions and (2) the reservation charge

specified in the effective Addendum to the Replacement or

Prearranged Replacement Customer's Capacity Release Umbrella

Agreement is less than the level of the reservation charge which

the Releasing Customer was obligated to pay TRES PALACIOS, then

TRES PALACIOS shall be entitled to terminate the Addendum, upon 30

days' written notice to the Replacement or Prearranged Replacement

Customer, unless the Replacement or Prearranged Replacement

Customer agrees prior to the end of said 30-day notice period to

pay for the remainder of the term of the Addendum either (i) the

reservation and commodity charges at levels which the Releasing

Customer was obligated to pay TRES PALACIOS, or (ii) such rate as

mutually agreed by TRES PALACIOS and Replacement or Prearranged

Replacement Customer. Customer may elect to pay the lesser of the

two foregoing options. TRES PALACIOS' right to terminate the

Addendum is subject to TRES PALACIOS providing written notice of

termination to the Replacement or Prearranged Replacement Customer

within 30 days of the determination by TRES PALACIOS that the

Releasing Customer no longer satisfies TRES PALACIOS' credit

requirements. Termination of the Addendum shall not occur prior

to termination of the Releasing Customer's contract.

(b) In the event that a Customer has received 30 days'

notice of termination of the Addendum to Customer's Capacity

Release Umbrella Agreement pursuant to Section 4.14(a) above for

storage service and there is Gas in storage for Customer's account

at the end of such 30-day period, the Addendum shall continue in

force and effect for the sole purpose of withdrawal of said Gas by

Customer until Customer's Storage Inventory is zero. TRES

PALACIOS shall require Customer to withdraw each Day a quantity

equal to the MDWQ, or such other lesser quantity acceptable to

TRES PALACIOS. The requirement to withdraw storage quantities

shall be suspended on any Day to the extent that TRES PALACIOS

cannot accommodate a nomination or withdraw such storage

quantities on such Day. Customer may also transfer title of Gas

remaining in Customer's Storage Inventory to another Customer

pursuant to Section 20 of TRES PALACIOS' General Terms and

Conditions. In the event Customer fails to withdraw its entire

Storage Inventory