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. 146 Original Sheet No. 146

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Calculation of Credits Against Reservation Charges.

Calculation of Credits Against Reservation Charges. For

each Day on which a Customer's firm service under Rate Schedules

FSS, NNSS, FP or FL is curtailed such that (i) for curtailments

due to Force Majeure events, Customer does not receive at least

98% of its scheduled service, or (ii) for non-Force Majeure

curtailments, Customer does not receive 100% of its scheduled

service, 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; provided, that

TRES PALACIOS shall not be required to provide Reservation Charge

credits during the first ten (10) Days of curtailment due to an

event of Force Majeure declared by TRES PALACIOS and; provided

further, TRES PALACIOS shall not be required to provide

Reservation Charge credits for curtailments or other service

interruptions that are the result of Customer's conduct or the

result of actions or inactions by pipeline Transporters. TRES

PALACIOS shall calculate Reservation Charge Credits for each

applicable Day of curtailment using the following formulae:

Curtailment of a firm Customer's injections:

Reservation Charge Credit = RC/#Days X CNIQ/MDIQ

Curtailment of a firm Customer's withdrawals:

Reservation Charge Credit = RC/#Days X CNWQ/MDWQ

Where:

RC = The Customer's Reservation Charges for the Month, calculated

using the rates set forth in the Customer's Storage Service

Agreement. Customer's NNSS Reservation Charges, if applicable,

shall be combined with its FSS Reservation Charges for this

calculation.

#Days = The number of Days in the Month.

CNIQ = The Curtailed Nominated Injection Quantity, which shall be

the quantity of Customer's nominated injections actually curtailed

on each Day in the Month by TRES PALACIOS.

CNWQ = The Curtailed Nominated Withdrawal Quantity, which shall be

the quantity of Customer's nominated withdrawals actually

curtailed on each Day of the Month by TRES PALACIOS.

MDIQ = The firm Customer's Maximum Daily Injection Quantity, as

set forth in its Storage Service Agreement.

MDWQ = The firm Customer's Maximum Daily Withdrawal Quantity, as

set forth in its Storage Service Agreement.