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. 128 Original Sheet No. 128

GENERAL TERMS AND CONDITIONS

(Continued)

within the time required by this Section, TRES PALACIOS shall

auction any remaining Storage Inventory and credit the proceeds of

such sale to Customer, net of withdrawal charges and fuel, if

applicable. Customer shall indemnify TRES PALACIOS and hold it

harmless from all costs, damages and liabilities arising out of

the failure of Customer to remove such Storage Inventory and the

disposal of such Storage Inventory by sale by TRES PALACIOS. TRES

PALACIOS shall post such quantities on the Internet Web Site as

soon as reasonably practicable. TRES PALACIOS shall accept bids

only during the time period from 7:00 a.m. until ll:00 a.m. CCT on

the second Business Day following such posting. Prior to 4:00

p.m., CCT of the same Day, TRES PALACIOS shall notify the Customer

submitting the highest bid. When the Gas is purchased at auction,

Customer purchasing the Gas must provide identification of the

existing Storage Service Agreement with TRES PALACIOS under which

Customer shall store all such Gas purchased. Customer purchasing

the Gas agrees to pay the applicable storage rate on the Gas

purchased beginning on the date the bid was accepted at auction.

(c) TRES PALACIOS shall provide the original Releasing

Customer with Internet e-mail notification reasonably proximate in

time with any of the following formal notices given by TRES

PALACIOS to the Releasing Customer's Replacement Customer(s), of

the following:

(1) Notice to the Replacement Customer regarding the Replacement

Customer's past due, deficiency, or default status pursuant to

TRES PALACIOS' tariff;

(2) Notice to the Replacement Customer regarding the Replacement

Customer's suspension of service notice;

(3) Notice to the Replacement Customer regarding the Replacement

Customer's contract termination notice due to default or credit-

related issues; and

(4) Notice to the Replacement Customer that the Replacement

Customer(s) is no longer creditworthy and has not provided credit

alternative(s) pursuant to TRES PALACIOS' tariff.