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. 145 Original Sheet No. 145

GENERAL TERMS AND CONDITIONS

(Continued)

16. INSURANCE

As an accommodation to Customers under Rate Schedules FSS,

ISS, FP, IP and IHBS, TRES PALACIOS shall be responsible for

obtaining for the benefit of such customers insurance coverage

against casualty events that result in the loss of Gas held in

storage in the TRES PALACIOS storage facility, provided that such

insurance coverage is available to TRES PALACIOS on commercially

reasonable terms. TRES PALACIOS' undertaking to obtain such

insurance coverage shall not be deemed to shift the risk of loss

of Customers' Gas in storage to TRES PALACIOS. TRES PALACIOS

shall use commercially reasonable efforts from time to time to

identify each Customer under Rate Schedules FSS, ISS, FP, IP and

IHBS as a named insured under any insurance policy or policies

obtained pursuant to this Section 16. A Customer's recovery of

the proceeds of any insurance payment made in respect of a

casualty event involving the loss of Gas held in storage shall be

limited to the Customer's allocable share of the proceeds of

insurance paid over to TRES PALACIOS, such share to be determined

in accordance with the provisions of Section 12.2 of these General

Terms and Conditions. TRES PALACIOS shall make insurance

policy(ies) obtained from time to time pursuant to this Section 16

available to Customer for review upon Customer's reasonable

request.

17. FORCE MAJEURE, RESERVATION CHARGE CREDITS

17.1. (a) Effect of Force Majeure. In the event TRES

PALACIOS is rendered unable, wholly or in part, by reason of an

event of Force Majeure, as defined herein, to perform, wholly or

in part, any obligation or commitment under Customer's Storage

Service Agreement, it is agreed that upon TRES PALACIOS' giving

notice and full particulars of such Force Majeure event on its

Internet Web Site and/or in writing to Customer within seventy-two

(72) hours after the occurrence of the cause relied on, then the

obligations of TRES PALACIOS shall be suspended to the extent that

TRES PALACIOS' ability to perform such obligations is affected by

such Force Majeure event and for the period of such Force Majeure

condition, but for no longer period, and such cause shall as far

as possible be remedied with all reasonable dispatch.

(b) Force Majeure and Obligation to Pay/Credit

Reservation Charges. A Customer taking firm service under Rate

Schedules FSS, NNSS, FP or FL shall not be relieved of its

obligation to pay Reservation Charges specified in such firm Rate

Schedules due to an event of Force Majeure and TRES PALACIOS shall

include the full amount of such Reservation Charges on the

Customer's invoice for any Month in which an event of Force

Majeure shall have occurred, provided, however, that TRES PALACIOS

shall calculate credits against the Customer's Reservation Charges

payable under Rate Schedules FSS, NNSS, FP or FL and its Storage

Service Agreement to reflect any reduction in TRES PALACIOS'

ability to render firm services resulting from an event of Force

Majeure declared by TRES PALACIOS and shall include such credits

on the firm Customer's invoice for the next succeeding Month, in

accordance with Section 17.1(c) below.