High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 03/01/2007, Docket: RP06-540-002, Status: Effective

Substitute Third Revised Sheet No. 30 Substitute Third Revised Sheet No. 30 : Effective

Superseding: Second Revised Sheet No. 30

Rate Schedule FT-2

Firm Transportation Service

(Continued)

Shipper shall not receive any volumetric credit in the computation of the

Shipper's three (3) month average daily throughput for gas transported by

a Replacement Shipper relative to Shipper's FT-2 capacity, unless the gas

being transported by the Replacement Shipper is produced from Shipper's

Committed Lease(s).

4.3 Additional Charges. In addition to the charges specified above, Shipper

shall pay to HIOS the following charges and such other charges applicable

to service hereunder as may be set forth from time to time in the General

Terms and Conditions:

i. Commission and Other Regulatory Fees. Shipper shall reimburse

HIOS for all filing, reporting and application fees required by

the Commission or any other regulatory body which are related to

service provided under this Rate Schedule.

ii If Associated Liquids are transported hereunder for Shipper and

HIOS is required by any regulatory agency, from time to time, to

allocate a portion of its cost of service to such transportation

service or to charge, or impute, a fee for such service, then

Shipper shall reimburse HIOS for such allocated costs or such fee.

4.4 Maximum and Discount Rates. The rates which are stated on the

currently effective Sheet No. 10 set forth the maximum rates applicable

to each service provided under this Rate Schedule, and the range

represented by the maximum and minimum rates stated for each such

service. Shipper shall pay the maximum rates for service under this

Rate Schedule unless HIOS, in its reasonable judgment, agrees to

discount its rate to Shipper under this Rate Schedule. Any discount

agreed to by HIOS and the effective period thereof shall be stated on

an executed Exhibit C to the FT-2 Agreement and shall be made on a not

unduly