Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 07/25/2009, Docket: RP09-260-000, Status: Effective

First Revised Sheet No. 139 First Revised Sheet No. 139

Superseding: Original Sheet No. 139

GENERAL TERMS AND CONDITIONS

(Continued)

and control the manner in which Gas is delivered or received.

TRES PALACIOS and Customer each agree to provide to the other, in

as prompt a manner as reasonable, all information necessary to

permit scheduling pursuant to such requirements. In addition,

TRES PALACIOS will not be required to begin wheeling, injections

or withdrawals for a Customer's account unless and until the data

required for nominations, provided for in Section 8, have been

confirmed by the applicable Transporter to TRES PALACIOS' Gas

dispatcher.

9.4 Transportation Imbalances. In the event that TRES

PALACIOS or Customer delivers or causes to be delivered to

Transporter at the Point(s) of Receipt or Delivery a quantity of

Gas not equal to the quantity of Gas received or taken by Customer

or TRES PALACIOS, a "Transportation Imbalance" may occur. Provided

that TRES PALACIOS has taken or delivered the quantity of Gas

nominated by Customer and scheduled by Transporter, Customer shall

be liable for all imbalances under its transportation agreement

with Transporter. Upon notification by Customer or Transporter

that a Transportation Imbalance exists because TRES PALACIOS

failed to deliver or receive the quantity of Gas nominated by

Customer and scheduled by Transporter, TRES PALACIOS will endeavor

to correct the Transportation Imbalance subject to any

restrictions imposed by Transporter but TRES PALACIOS shall be

solely responsible and liable for any charges, penalties, costs

and expenses incurred or payable by either party as a result of

the Transportation Imbalance. Customer agrees to use its best

efforts to prevent or diminish any occurrences of imbalances.

9.5 Measurement. Customer and TRES PALACIOS agree that

the quantity of Gas delivered hereunder shall be measured by TRES

PALACIOS in accordance with the Transporter's pipeline tariff

applicable to each Point of Delivery/Receipt, and, as such, may be

allowed to fluctuate within the applicable measurement or flow

tolerances on a daily and Monthly basis.

9.6 Costs and Penalties. Customer shall hold TRES

PALACIOS harmless for all costs and penalties which may be

assessed by Transporter(s) under Customer's transportation

agreement(s) with Transporter(s), unless the costs and penalties

are due to the negligence of TRES PALACIOS. Customer and TRES

PALACIOS shall cooperate with each other and with the

Transporter(s) to verify delivery and receipt of the volumes of

Gas delivered hereunder on a timely basis.

9.7 Downstream and Upstream Transportation. Customer

shall be responsible for transportation from the Point(s) of

Delivery and payment of all transportation charges relating

thereto. Customer shall be responsible for transportation to the

Point(s) of Receipt and payment of all transportation charges

relating thereto.

10. QUALITY

10.1 Specifications. The Gas delivered by either party

to the other hereunder shall meet the quality specifications of

the Transporter which receives or delivers such Gas at the Point

of Receipt or Delivery, as applicable, and, unless such

Transporter's quality specifications are more stringent, shall be

of such quality that it shall meet at least the following

specifications: