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. 142 Original Sheet No. 142

GENERAL TERMS AND CONDITIONS

(Continued)

13. MEASUREMENT

13.1 The unit of volume for measurement of all

quantities of Gas wheeled, parked, loaned or stored by TRES

PALACIOS or delivered to and received from storage hereunder shall

be one (1) cubic foot of Gas at the base temperature of sixty

degrees Fahrenheit (60 degrees F) and at an absolute pressure of

fourteen and seventy-three hundredths (14.73) pounds per square

inch and dry. All fundamental constants, observations, records,

and procedures involved in determining and/or verifying the

quantity and other characteristics of Gas delivered hereunder

shall, unless otherwise specified herein, be in accordance with

the standards prescribed in Report No. 3 of the American Gas

Association, as now in effect and from time to time amended or

supplemented. All measurements of Gas shall be determined by

calculation into terms of such unit. All quantities given herein,

unless expressly stated otherwise, are in terms of such unit.

Notwithstanding the foregoing, it is agreed that, for all

purposes, the Btu content of the Gas received and delivered by

TRES PALACIOS hereunder shall be measured on a "dry" basis rather

than a fully saturated or "wet" basis. For Gas volumes reported

in cubic meters, the standard conditions are 101.325 kPa, 15

degrees C, and dry.

13.2 TRES PALACIOS shall install, maintain and operate,

or cause to be installed, maintained and operated, the measurement

facilities required hereunder. Said measurement facilities shall

be so equipped with meters, recording gauges, chromatographs or

other types of related and/or similar equipment of standard make

and design commonly acceptable in the industry, as to accomplish

the accurate measurement of Gas delivered hereunder. The

retrieval of data and calibrating and adjustment of meters shall

be done by TRES PALACIOS or its agent.

14. BILLINGS AND PAYMENTS

14.1 Invoice. Not later than the ninth (9th) Business

Day of each month, TRES PALACIOS shall provide Customer (including

a Replacement Customer) an invoice and any required backup data

(which may be transmitted by fax) setting forth (i) the charges

due for the current Month; (ii) the total quantity of Gas, stated

in Dekatherms, received from and delivered to Customer hereunder

during the preceding Month(s), with applicable Point(s) of Receipt

and Point(s) of Delivery properly identified, and the amount due

therefor; and if applicable, (iii) the amount of Customer's Gas in

storage as of the close of the preceding Month and information

sufficient to explain and support any adjustments made by TRES

PALACIOS in determining the amount billed. If actual quantities

are not available by the ninth (9th) Business Day of the month,

TRES PALACIOS may invoice based on best available data subject to

adjustment to actual at a later date. Quantities at points where

Operational Balancing Agreements exist shall be invoiced based on

scheduled quantities.