High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 06/01/2004, Docket: RP04- 47-000, Status: Effective

Second Revised Sheet No. 26 Second Revised Sheet No. 26 : Effective

Superseding: First Revised Sheet No. 26

RATE SCHEDULE FT-2

FIRM TRANSPORTATION SERVICE

1. AVAILABILITY

1.1 This Rate Schedule is available to any Shipper in the High Island

Offshore System (HIOS or Transporter) that requests transportation of

gas on a firm basis under this Rate Schedule from HIOS when:

i. HIOS' pipeline facilities have sufficient available capacity and

are able to provide said transportation;

ii. Shipper submits a valid request consistent with the requirements

of this Rate Schedule and Section 2 of the General Terms and

Conditions applicable hereto including providing assurances of

Shipper's solvency and ability to perform;

iii. Shipper and HIOS have executed a Transportation Agreement for

service under this Rate Schedule FT-2 ("FT-2 Agreement");

iv. Shipper has executed a Reserve Commitment Agreement with HIOS in

the form contained in HIOS'S Tariff;

v. Shipper has become a party to the "Gas Allocation Agreement"; and

vi. 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.

Only gas dedicated pursuant to a Reserve Commitment Agreement is

eligible for firm transportation services only under this Rate Schedule

FT-2. Shipper shall execute no more than one (1) Transportation

Agreement per a Reserve Commitment Agreement.

1.2 HIOS shall not be obligated to construct, modify, or acquire facilities

to perform transportation services under this Rate Schedule; provided,

however, that HIOS may agree on a nondiscriminatory basis to construct,

modify, or acquire facilities to enable it to perform such service.