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. 144 Original Sheet No. 144

GENERAL TERMS AND CONDITIONS

(Continued)

14.5 Billing Disputes. If Customer withholds payment of

any disputed amount as authorized herein, Customer shall within

ten (10) days after the due date of the disputed invoice submit to

TRES PALACIOS a written explanation of the dispute and any

available supporting documentation. The parties shall then

cooperate in good faith to resolve such dispute as expeditiously

as possible, and the portion, if any, of such disputed amount

eventually determined to be due shall bear interest at the rate

stated in Section 14.4 above from the original due date until the

date actually paid.

14.6 Right to Audit. Both TRES PALACIOS and Customer

shall have the right at their own expense to examine and audit at

any reasonable time the books, records (including measurement,

billing and payment) and charts of the other to the extent

necessary to verify the accuracy of any statements or charges made

under or pursuant to any of the provisions of Customer's Storage

Service Agreement. Upon request, Customer shall also make

available to TRES PALACIOS for audit purposes any relevant records

of the Transporters to which Customer has access. A formal audit

of accounts shall not be made more often than once each Contract

Year. Any inaccuracy will be promptly corrected when discovered;

provided, however, that neither TRES PALACIOS nor Customer shall

be required to maintain books, records or charts for a period of

more than two (2) Contract Years following the end of the Contract

Year to which they are applicable. Neither TRES PALACIOS nor

Customer shall have any right to question or contest any charge or

credit if the matter is not called to the attention of the other

in writing within two (2) years after the end of the Contract Year

in question.

15. TAXES

If at any time TRES PALACIOS is required to remit any taxes

assessed on the Gas pursuant to Customer's Storage Service

Agreement, then TRES PALACIOS shall have the right to collect from

Customer such taxes, including any penalties and interest.

Customer agrees to reimburse TRES PALACIOS for the taxes assessed

on the Gas, including any penalties and interest, within fifteen

(15) days of the date of invoice from TRES PALACIOS. Customer

shall furnish TRES PALACIOS information, satisfactory to TRES

PALACIOS, to enable TRES PALACIOS to comply with any reports

required by state or federal government and agencies. Customer

recognizes that TRES PALACIOS may be required to file federal and

state tax returns, and Customer agrees to furnish TRES PALACIOS

with adequate information pertaining to the taxation on the Gas.

Customer shall coordinate such filings with TRES PALACIOS.