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. 232 First Revised Sheet No. 232

Superseding: Original Sheet No. 232

INTERRUPTIBLE HOURLY BALANCING SERVICE AGREEMENT

(For Use Under Rate Schedule IHBS)

This Agreement is made as of the _______day of _________, ____, by

and between TRES PALACIOS GAS STORAGE LLC, a Delaware limited

liability company herein called "TRES PALACIOS," and

_____________________, an __________________, herein called

"Customer," (each of TRES PALACIOS and Customer, a "Party," and

collectively, the "Parties"), pursuant to the following recitals

and representations:

WHEREAS, TRES PALACIOS owns and operates an underground natural

gas storage facility known as the Tres Palacios Gas Storage

facility, located in Texas, and is authorized to provide natural

gas storage and related services in interstate commerce by way of

the Tres Palacios Gas Storage facility; and

WHEREAS, Customer has requested that TRES PALACIOS provide certain

interruptible hourly balancing natural gas storage services for

Customer; and

WHEREAS, TRES PALACIOS has agreed to provide such interruptible

hourly balancing storage services for Customer subject to the

terms and conditions set forth in this Agreement.

NOW, THEREFORE, TRES PALACIOS and Customer agree as follows:

ARTICLE I - SCOPE OF AGREEMENT

Following the commencement of service hereunder, in accordance

with the terms of TRES PALACIOS' Rate Schedule IHBS, and of this

Agreement,

TRES PALACIOS shall receive on any Day for injection into storage

for Customer's account a quantity of Gas up to Customer's Maximum

Daily Injection Quantity as set forth on Exhibit "A" hereto, shall

store quantities of Gas so injected in the Tres Palacios Gas

Storage LLC underground gas storage facility located in Texas, up

to a Maximum Storage Quantity as set forth on Exhibit "A" (on a

cumulative basis) and on demand on any Day shall withdraw from

Customer's Storage Inventory and deliver to Customer a quantity of

Gas up to Customer's Maximum Daily Withdrawal Quantity as set

forth on Exhibit "A;" and

TRES PALACIOS shall, for each hour during a Day, subject to

maximum hourly limit as set forth on Exhibit "A," receive or

deliver at the Point(s) of Receipt/Delivery designated by Customer

hourly balancing quantities of Gas which shall be the difference,

on an hourly basis, between (i) the injections to or withdrawals

from TRES PALACIOS' storage of Gas as nominated by Customer to

meet Customer's desired hourly pattern of deliveries at its

delivery point(s) on the Transporter's (s') pipeline system(s) and

(ii) Customer's ratable flow quantities on TRES PALACIOS (1/24 of

Daily nominated quantities).