High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/01/2000, Docket: RP99-227-004, Status: Effective

Original Sheet No. 27 Original Sheet No. 27 : Effective

Rate Schedule FT-2

Firm Transportation Service

(Continued)

1.3 HIOS shall have no obligation to accept any gas for

transportation under this Rate Schedule FT-2 unless Shipper

(i) agrees to dedicate for delivery into and transportation

through HIOS' pipeline facilities all gas produced by or for

the account of Shipper, or an affiliate of Shipper which

Shipper controls (as defined in Section 1.2 of the Reserve

Commitment Agreement), pursuant to the terms of a Reserve

Commitment Agreement, from Outer Continental Shelf (OCS)

Lease(s) specifically identified and committed to HIOS by the

Shipper and having estimated proven recoverable reserves

of at least 40 Bcf attributable to Shipper's interests and its

affiliates or aggregated with other Shipper(s) interests in such

leases which are committed to HIOS pursuant to a Reserve

Commitment Agreement (such Lease(s) being referred to herein as

"Committed Lease(s)"); and (ii) demonstrates with sufficient

information to HIOS' reasonable satisfaction the estimated

proven recoverable reserves attributable to Shipper's interest or

aggregate committed interests in the Committed Lease(s). Any

Shipper with Committed Lease(s) connected into HIOS' system on

February 16, 1999, may be eligible for this Rate Schedule

if the proven recoverable reserves associated with such Committed

Lease(s) are less than 40 Bcf; however, if a Shipper with such

Committed Lease(s) also has other Committed Lease(s) that were

not connected into HIOS' system on February 16, 1999, then

such other Committed Lease(s) must meet the 40 Bcf criteria set

forth above.

1.4 HIOS shall have no obligation to accept any gas for

transportation under this Rate Schedule FT-2 other than the gas

produced from working interests of Shipper or its affiliates in

the Committed Lease(s) and that is dedicated to HIOS' system

under a Reserve Commitment Agreement.