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. 236 Original Sheet No. 236

INTERRUPTIBLE HOURLY BALANCING SERVICE AGREEMENT

(Continued)

(For Use Under Rate Schedule IHBS)

11.2 IF DEEMED NECESSARY BY A COURT OF LAW, PURSUANT TO SECTION 7-

202(2) OF THE TEXAS UNIFORM COMMERCIAL CODE, SHIPPER HEREBY AGREES

THAT:

(i) THIS AGREEMENT, WITH ALL SCHEDULES AND EXHIBITS HERETO, AND

ALL OF THE MONTHLY STATEMENTS RENDERED BY TRES PALACIOS TO

CUSTOMER PURSUANT TO THE GENERAL TERMS AND CONDITIONS CONTAINED IN

TRES PALACIOS' TARIFF, SHALL BE DEEMED A "WAREHOUSE RECEIPT" FOR

ALL PURPOSES WITH RESPECT TO ARTICLE 7 OF THE TEXAS UNIFORM

COMMERCIAL CODE, REGARDLESS OF WHEN THE GAS STORED PURSUANT TO THE

CONTRACT IS RECEIVED;

(ii) THE LOCATION OF THE WAREHOUSE, TO WHOM THE GAS WILL BE

DELIVERED, RATE OF STORAGE AND HANDLING CHARGES, AND DESCRIPTION

OF THE GOODS ARE AS SET FORTH, RESPECTIVELY, IN THE PREAMBLE OF

THIS AGREEMENT, ARTICLE II OF THIS AGREEMENT, THE MONTHLY INVOICE

(AS DESCRIBED IN SECTION 14.1 OF THE GENERAL TERMS AND CONDITIONS)

AND SECTION 2.16 OF THE GENERAL TERMS AND CONDITIONS;

(iii) THE ISSUE DATE OF THE WAREHOUSE RECEIPT WITH RESPECT TO EACH

RECEIPT OF GAS SHALL BE DEEMED TO BE THE DATE SUCH GAS WAS

RECEIVED,

(iv) THE CONSECUTIVE NUMBER OF THE RECEIPT SHALL BE DEEMED BASED

ON THE DATES OF RECEIPT WHEN LISTED IN CHRONOLOGICAL ORDER,

BEGINNING WITH THE FIRST RECEIPT OF GAS UNDER THE TERMS OF THE

CONTRACT, AND

(v) THE SIGNATURE OF TRES PALACIOS ON THE CONTRACT SHALL BE DEEMED

TO BE THE SIGNATURE OF THE WAREHOUSEMAN.

ARTICLE XII - MISCELLANEOUS

12.1. This Agreement sets forth all understandings and

agreements between the Parties respecting the subject matter

hereof, and all prior agreements, understandings and

representations, whether written or oral, respecting the subject

matter hereof are superseded by this Agreement. No modification

of the terms and provisions of this Agreement shall be made except

by the execution by both Parties of a written agreement.

12.2. No waiver by a Party of any default(s) by the other Party in

the performance of any provision, condition or requirement of this

Agreement shall operate or be construed as a waiver of any future

default(s), whether of a like or of a different character, nor in

any manner release the defaulting Party from performance of any

other provision, condition or requirement set forth herein.