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. 130 Original Sheet No. 130

GENERAL TERMS AND CONDITIONS

(Continued)

5.3 Interruption.

(a) If on any Day TRES PALACIOS' capability to receive

or deliver quantities is impaired so that TRES PALACIOS is unable

to receive or deliver all the quantities which are scheduled, then

interruption of service shall be implemented in the reverse order

of priority set forth in Section 5.1. If Firm Storage Service

must be interrupted, interruption of service to firm storage

Customers shall be pro rata based on MDWQ, MDIQ, MSQ, Maximum Park

Quantity or Maximum Loan Quantity, as applicable. Interruption of

service to Interruptible Customers under Rate Schedules ISS, IHBS,

IP, IW, and IL shall be on a pro rata basis.

(b) TRES PALACIOS shall provide Customer as much

advance notice of any interruption as is practicable under the

circumstances. Such notice shall be made by telephone, fax, e-

mail or via the Internet Web Site, as appropriate, and shall state

the reduced quantities of Gas that TRES PALACIOS estimates it will

be able to park, wheel, loan, store, inject, withdraw, receive or

deliver, as applicable, and the estimated duration of the

interruption.

(c) If interruption is required, TRES PALACIOS and

Customer shall cooperate to the extent possible in making

adjustments to receipts, deliveries, injections or withdrawals to

minimize injury to any property or facilities.

5.4 Interruption Liability. TRES PALACIOS shall not be

liable for any loss or damage to any person or property caused, in

whole or in part, by any interruption of service, except to the

extent caused solely by TRES PALACIOS' negligence or willful

misconduct.

5.5 Action Alerts and Operational Flow Orders.

(a) Circumstances Warranting Issuance: As specified in

this Section 5.5, TRES PALACIOS shall have the right to issue

Action Alerts or Operational Flow Orders ("OFOs") that require

actions by Customers in order (1) to alleviate conditions that

threaten to impair reliable service, (2) to maintain operations at

the pressures required to provide efficient and reliable services,

(3) to have adequate Gas supplies in the system to deliver on

demand, (4) to maintain service to all firm shippers and for all

firm services, and (5) to maintain the system in balance for the

foregoing purposes.

(b) Actions to be Taken to Avoid Issuance: TRES

PALACIOS shall, to the extent practicable, take all reasonable

actions necessary to avoid issuing an Action Alert or OFO. Such

actions shall include, in order of priority (1) working with point

operators to temporarily adjust receipts and/or deliveries at

relevant Point(s) of Receipt or Point(s) of Delivery, (2) working

with Customers and point operators to adjust scheduled flows on

the system, or (3) taking any other reasonable action designed to

mitigate the system problem. After taking all such reasonable

actions to avoid issuing an Action Alert or OFO, TRES PALACIOS

will have the right to issue Action Alerts or OFOs, if necessary,

in the circumstances described in Section 5.5(a).