Tres Palacios Gas Storage LLC

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 07/25/2009, Docket: RP09-260-000, Status: Effective

First Revised Sheet No. 149 First Revised Sheet No. 149

Superseding: Original Sheet No. 149

GENERAL TERMS AND CONDITIONS

(Continued)

20.2 Title Transfers of Gas

(a) Transfers of title between Customers and/or

Storage Service Agreements under which Gas is delivered to TRES

PALACIOS, withdrawn from TRES PALACIOS' storage or wheeled on TRES

PALACIOS' system may be permitted by TRES PALACIOS at Point(s) of

Receipt and Point(s) of Delivery on an Interruptible basis

pursuant to Customer's Title Transfer Form.

(b) Requests for such transfers shall be made in

accordance with the nomination procedures set forth in Section 8,

Nominations and Scheduling, of the General Terms and Conditions

herein. TRES PALACIOS shall not unreasonably withhold approval of

such transfers.

(c) For each title transfer nominated by Customer

under Section 20.2(b) herein, Customer shall pay the gas title

transfer rate set forth on the executed Title Transfer Form.

21. PENALTIES

21.l A Customer shall be liable for and shall be required

to reimburse TRES PALACIOS for all penalties, charges and fees

which TRES PALACIOS is required to pay to Transporter(s) as a

consequence of Customer's actions. The recovery of such penalty

amounts shall be on an as-billed basis.

21.2 In addition to the payment of the penalties set

forth in Section 21.1 herein, the responsible Customer shall also

be liable for, and shall reimburse TRES PALACIOS, for all costs

incurred by TRES PALACIOS as a consequence of such Customer's

actions.

22. TRANSMISSION PROVIDER STANDARDS OF CONDUCT

TRES PALACIOS does not meet FERC's definition of a

"Transmission Provider" (18 C.F.R. 358.3(a)) because it is a

storage company authorized to charge market-based rates, is not

interconnected with the facilities of any affiliated interstate

natural gas pipeline, has no exclusive franchise area, has no

captive customers and has no market power. Therefore, TRES

PALACIOS is not required to comply with FERC's Transmission

Provider Standards of Conduct, as promulgated in Order Nos. 2004,

et al., and codified at 18 C.F.R. Part 358.