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. 248 Original Sheet No. 248

FORM OF SERVICE AGREEMENT FOR

CAPACITY RELEASE UMBRELLA AGREEMENT UNDER

RATE SCHEDULES FSS, NNSS, FP AND FL

(Continued)

(a) TRES PALACIOS: ________________________________

________________________________

________________________________

(b) Replacement Customer: ________________________________

________________________________

________________________________

or such other address as either Party shall designate by formal

written notice. In all instances, the Parties shall use their

best efforts to provide notice by facsimile prior to 5 p.m.

Eastern Time. Notice received before 5 p.m. Eastern Time shall be

deemed effective the day of receipt. Notice received after 5 p.m.

Eastern Time shall be deemed effective the day following receipt.

ARTICLE V

INTERPRETATION

THE INTERPRETATION AND PERFORMANCE OF THIS CAPACITY RELEASE

UMBRELLA AGREEMENT SHALL BE IN ACCORDANCE WITH THE LAWS OF THE

STATE OF TEXAS, WITHOUT RECOURSE TO THE LAW GOVERNING CONFLICT OF

LAWS.

This Capacity Release Umbrella Agreement and the

obligations of the parties are subject to all present and future

valid laws with respect to the subject matter, either State or

Federal, and to all valid present and future orders, rules, and

regulations of duly constituted authorities having jurisdiction.

ARTICLE VI

RELATIONSHIP BETWEEN REPLACEMENT CUSTOMER

AND RELEASING CUSTOMER

The parties recognize that, pursuant to Commission orders,

Releasing Customer may require that the Replacement Customer agree

that a breach of this Capacity Release Umbrella Agreement,

including a failure to pay, or to pay timely, by Replacement

Customer under this Capacity Release Umbrella Agreement,

constitutes a breach of contract as between Replacement Customer

and Releasing Customer. The existence of such an agreement will

be indicated on the appropriate Addendum to this Capacity Release

Umbrella Agreement. If Replacement Customer fails to pay TRES

PALACIOS, fails to timely pay TRES PALACIOS, or otherwise breaches

this Capacity Release Umbrella Agreement with TRES PALACIOS: (a)

both Replacement Customer and Releasing Customer (except to the

extent otherwise provided in Section 4 of the General Terms and

Conditions and except with respect to penalties attributable to

Replacement Customer's conduct) shall be liable to TRES PALACIOS

for such failure to pay or breach (it being understood that

nothing in this Article VI relieves Releasing Customer from

responsibility to pay TRES PALACIOS in accordance with its Storage

Service Agreements with TRES PALACIOS) and (b) if, as a result of

such breach by Replacement Customer, Releasing Customer is

accordingly required to pay TRES PALACIOS or otherwise perform,

Releasing Customer may have a cause of action for breach against

Replacement Customer.