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. 246 Original Sheet No. 246

FORM OF SERVICE AGREEMENT FOR

CAPACITY RELEASE UMBRELLA AGREEMENT UNDER

RATE SCHEDULES FSS, NNSS, FP AND FL

This Capacity Release Umbrella Agreement, made and entered into

this ___ day of _________, ______by and between___________________

, a _______________ (herein called "Replacement Customer"), and

TRES PALACIOS GAS STORAGE LLC, a Delaware limited liability

company herein called "TRES PALACIOS", (each of TRES PALACIOS and

Customer, a "Party," and collectively, the "Parties").

W I T N E S S E T H:

WHEREAS,

NOW, THEREFORE, for and in consideration of the mutual

covenants and promises herein contained, the Replacement Customer

and TRES PALACIOS hereby agree as follows:

ARTICLE I

SCOPE OF AGREEMENT

Subject to the terms, conditions and limitations hereof, so

long as the financial evaluation and credit appraisal requirements

are met in order for Replacement Customer to be on TRES PALACIOS'

approved bidder list for capacity releases and to execute this

Capacity Release Umbrella Agreement pursuant to Section 4 of the

General Terms and Conditions of TRES PALACIOS' FERC Gas Tariff,

and this Capacity Release Umbrella Agreement is effective,

Replacement Customer may bid from time to time on proposed

capacity releases under Rate Schedules FSS, NNSS, FP and FL

pursuant to the procedure set forth in Section 4 of TRES PALACIOS'

General Terms and Conditions. If at any time a bid submitted by

Replacement Customer is accepted by TRES PALACIOS with respect to

a given capacity release, TRES PALACIOS will promptly finalize the

appropriate Addendum to this Capacity Release Umbrella Agreement,

in the format attached hereto. The parties agree that each

Addendum is an integral part of this Capacity Release Umbrella

Agreement as if executed by the parties hereto and fully copied

and set forth herein at length and is binding on the parties

hereto. Upon finalization of such Addendum, Replacement Customer

and TRES PALACIOS agree that Replacement Customer shall be

considered for all purposes as a Customer with respect to the

released service.

Upon the finalization of an Addendum, subject to the terms,

conditions and limitations hereof and of TRES PALACIOS' Rate

Schedules FSS, NNSS, FP and FL, TRES PALACIOS agrees to provide

the released service for Replacement Customer under the applicable

Rate Schedule, provided however, the Replacement Customer shall

have qualified under the financial evaluation and credit appraisal

requirements set forth in Section 3 of TRES PALACIOS' General

Terms and Conditions at the time it submitted the bid TRES

PALACIOS accepted with respect to such release.

Replacement Customer hereby agrees promptly to provide any

information necessary for TRES PALACIOS to reevaluate TRES

PALACIOS' credit appraisal as contemplated by Section 3 of TRES

PALACIOS' General Terms and Conditions and to advise TRES PALACIOS

of any material change in the information previously provided by

the Replacement Customer to TRES PALACIOS.