High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 10/01/2007, Docket: RP06-540-004, Status: Effective

Third Revised Sheet No. 14 Third Revised Sheet No. 14 : Effective

Superseding: Substitute Second Revised Sheet No. 14

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

1. AVAILABILITY

This rate schedule is available to any Shipper in the High Island Offshore

System L.L.C. (HIOS or Transporter) for the transportation of gas on a firm

basis where: (1) Transporter has determined that it has sufficient available

capacity to perform service requested by Shipper; (2) the Shipper has

demonstrated, to HIOS' reasonable satisfaction, that it is creditworthy in

accordance with Section 5 of the General Terms and Conditions; (3) the Shipper

has executed a Transportation Agreement with HIOS for firm service; (4) the

Shipper has become a party to the "Gas Allocation Agreement"; and (5) the

Shipper has executed an NGL Bank Agreement with HIOS and with the

Administrator in the form contained in HIOS' Tariff. For any period when

there is no corresponding NGL Bank Agreement in effect ("non-compliance

period") HIOS is entitled to suspend service on any Transportation Agreement

executed with HIOS for service under this rate schedule for the duration of

the non-compliance period.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This rate schedule shall apply to all natural gas transported under a

Transportation Agreement executed with HIOS for firm service under this

rate schedule.

2.2 Service hereunder shall have a comparable priority with service under

FT-2; and

2.3 Pursuant to this rate schedule, HIOS will provide firm transportation

for Shipper up to the Maximum Daily Quantity (MDQ) specified in the

Transportation Agreement (Agreement). Shipper may tender gas to HIOS

at the Points of Receipt specified in said Agreement, and HIOS shall

receive such gas at said Points of Receipt and redeliver an Equivalent

Volume for the account of Shipper at the Points of Delivery specified

in said Agreement.

3. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions of this Tariff are applicable to this rate

schedule.

4. RATES AND CHARGES

4.1 Transportation Charge. Shipper agrees to pay HIOS an amount each month

equal to the sum of a reservation charge and a commodity charge

determined as follows: