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. 148 First Revised Sheet No. 148

Superseding: Original Sheet No. 148

GENERAL TERMS AND CONDITIONS

(Continued)

Fuel Reimbursement charges are intended to compensate TRES

PALACIOS for these categories of fuel usage and for lost and

unaccounted for Gas volumes to the extent required for the

operation and maintenance of TRES PALACIOS' Gas storage

facilities.

19.2 Fuel Reimbursement. Fuel Reimbursement shall be

calculated separately for storage services, wheeling, loaning and

parking under Rate Schedules FSS, FP, FL, ISS, IHBS, IP, IW, and

IL. Each Fuel Reimbursement charge shall be negotiated by TRES

PALACIOS and Customer such that reimbursement of fuel shall be

paid in kind, as set forth in Customer's Storage Service

Agreement(s).

20. GAS TITLE TRANSFERS

20.1 Title Transfers of Gas in Storage:

(a) A Customer that has executed a Storage Service

Agreement under Rate Schedules FSS, FP, FL, ISS, IHBS, IL or IP

may sell some or all of its Storage Inventory or Loan Balance to

any other Customer that has executed a Storage Service Agreement

under the same Rate Schedule to become part of such other

Customer's Storage Inventory or Loan Balance under the same Rate

Schedule if:

(1) Customer selling Storage Inventory or Loan Balance and

Customer purchasing Storage Inventory or Loan Balance execute a

Title Transfer Form identifying the details of the title transfer

transaction, as such form is posted of TRES PALACIOS' Internet Web

Site and amended from time to time, and submit such executed form

to TRES PALACIOS; and

(2) The purchase does not cause either Customer to exceed its

Maximum Storage Quantity, Maximum Loan Quantity, or Maximum Park

Quantity, as applicable and as specified in the Customer's Storage

Service Agreement, or cause either Customer's balance to go below

zero.

TRES PALACIOS may restrict transfers when such transfers would

result in an increase in the service obligations of TRES PALACIOS

or cause operational difficulties and such increase or operational

difficulties would, in the reasonable judgment of TRES PALACIOS,

impair the ability of TRES PALACIOS to meet all of its other

service obligations of equal or higher priority.

(b) TRES PALACIOS will recognize the transfer for

purposes of computing each Customer's available Storage Inventory

or Loan Balance on a prospective basis within one (1) Business Day

after receipt of the executed Title Transfer Form.

(c) For each title transfer of Gas in storage

performed under this section, each Customer shall pay the Title

Transfer rate as agreed upon by each Customer and TRES PALACIOS

and set forth on the executed Title Transfer Form.