Tres Palacios Gas Storage LLC

Original Volume No. 1

Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 156 Original Sheet No. 156

GENERAL TERMS AND CONDITIONS

(Continued)

31.5 "Unsecured Collateral Limit" means the maximum

amount of credit TRES PALACIOS will extend to a Customer, without

Customer providing Financial Assurances pursuant to this Section

31, based upon the Customer's Credit Rating, as provided in the

table below:

S&P AAA $25,000,000

Moody's Aaa

S&P AA+ to AA- $15,000,000

Moody's Aa1 to Aa3

S&P A+ to A- $5,000,000

Moody's A1 to A3

S&P BBB+ to BBB- $1,000,000

Moody's Baa1 to Baa3

S&P BB+ and lower $0

Moody's Ba1 and lower

31.6 "Material Adverse Change" means the failure of

Customer at any time to satisfy the requirements pertaining to

creditworthiness set forth in Section 3.3, to maintain an

Acceptable Credit Rating or to maintain or reinstate one of the

forms of Financial Assurances specified in Section 31.10.

31.7 "Financial Assurances" means one or more of the forms

of security set forth in Sections 31.10(a), 31.10(b), 31.10(c) and

31.10(d), in accordance with and in an amount as set forth in

Section 31.10.

31.8 If Customer suffers a Material Adverse Change,

Customer shall provide TRES PALACIOS with one or more of the forms

of Financial Assurances as set forth in this Section 31. Customer

shall provide such Financial Assurances within five (5) Business

Days of written notice from TRES PALACIOS in an amount equal to

one month of firm service reservation charges, one month of

Interruptible service charges calculated on a one hundred percent

load factor basis and/or the market value of Customer's loaned

gas, each determined in the manner described in Section 31.10

below, as applicable. Customer shall fully comply with Financial

Assurances provisions of Section 31.10 of these General Terms and

Conditions within 30 days of written notice from TRES PALACIOS.