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. 152 Original Sheet No. 152

GENERAL TERMS AND CONDITIONS

(Continued)

24. JOINT OBLIGATIONS

When Customer under a Storage Service Agreement consists of

two or more persons, the obligations of such persons under such

agreement shall be joint and several and, except as otherwise

provided, any action provided to be taken by Customer shall be

taken by such persons jointly.

25. NONDISCRIMINATORY WAIVER OF TARIFF PROVISIONS AND

NONWAIVER OF FUTURE DEFAULTS

TRES PALACIOS may waive any of its rights hereunder or any

obligations of Customer on a basis which is not unduly

discriminatory; provided that no waiver by either Customer or TRES

PALACIOS of any one or more defaults by the other in the

performance of any provision of the Storage Service Agreement

between Customer and TRES PALACIOS shall operate or be construed

as a waiver of any future default or defaults, whether of a like

or of a different character.

26. MODIFICATION

No modification to the terms and provisions of any Storage

Service Agreement or exhibit thereto shall be or become effective

except by the execution of a superseding Storage Service Agreement

or exhibit thereto.

27. SUCCESSORS IN INTEREST

Any company which shall succeed by purchase, merger,

consolidation or otherwise to the properties substantially as an

entirety, of TRES PALACIOS or of Customer, shall be entitled to

the rights and shall be subject to the obligations of its

predecessors in title under a Storage Service Agreement. In

accordance with the capacity release procedures set forth in

Section 4 of the General Terms and Conditions, Customer may,

without relieving itself of its obligations under such Storage

Service Agreement, assign any of its rights and obligations

thereunder to another shipper, but otherwise no assignment of such

Storage Service Agreement, or of any of the rights or obligations

thereunder shall be made unless there first shall have been

obtained the consent thereto of TRES PALACIOS, in the event of any

assignment by Customer, or the consent thereto of Customer, in the

event of an assignment by TRES PALACIOS. These restrictions on

assignment shall not in any way prevent any party from pledging or

mortgaging its rights under a Storage Service Agreement as

security for its indebtedness.