High Island Offshore System, L.L.C.

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 10/01/2009, Docket: RP09-487-000, Status: Suspended

Fifth Revised Sheet No. 28 Fifth Revised Sheet No. 28

Superseding: Fourth Revised Sheet No. 28

Rate Schedule FT-2

Firm Transportation Service

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This Rate Schedule shall apply to firm transportation service rendered

by HIOS for Shipper pursuant to Part 284 of the Federal Energy

Regulatory Commission's (Commission) Regulations and pursuant to the

Service Agreement for transportation service under this Rate Schedule.

2.2 Service hereunder shall have a comparable priority with service under

Rate Schedule FT-1; and

2.3 Pursuant to this rate schedule, HIOS will provide transportation

service up to the Maximum Daily Quantity (MDQ) specified in the

Transportation 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 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 which,

subject to the provisions of Section 4.2, shall be determined as

follows:

(a) The reservation charge shall be the product of 100% of

Shipper's MBQ and Transporter's effective reservation rate per

Dth, as applicable, for FT-2 service, as set forth on Sheet

No. 10 of this Tariff. For purposes of this calculation, the

MBQ shall be equal to the average daily quantity transported

during the applicable billing month.

(b) The commodity charge shall be the sum of the product of the

monthly volumes of gas expressed in Dth received by HIOS from

Shipper, or for the account of Shipper, at the Points of

Receipt set forth in Exhibits A and B of the Transportation

Agreement, and HIOS' effective Long Haul or Short Haul

commodity rate per Dth, as applicable, as set forth on Sheet

NO. 10 of this Tariff.

4.2 Failure to Satisfy Minimum Throughput Obligation.

During each billing month, HIOS will analyze the average throughput

level for the production month being billed and the immediately

preceding two production months (the "3-Month Period") by dividing the

aggregate quantity of gas received for Shipper's account at the

Point(s) of Receipt by the number of days in the 3-Month Period. If

the result is less than 80% of the average of the MDQ's specified in

the FT-2 Agreement for the 3-Month Period, Shipper shall be subject to

Reservation and Commodity Charges for the second production month