High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Substitute Fourth Revised Sheet No. 32 Substitute Fourth Revised Sheet No. 32 : Effective

Superseding: Third Revised Sheet No. 32

Rate Schedule FT-2

Firm Transportation Service

(Continued)

payments shall be paid to HIOS in addition to the charges otherwise

payable by Shipper under this or the appropriate Rate Schedule. HIOS

shall credit to non-offending Shippers all unauthorized overrun penalty

revenues received under this section in accordance with Section 27 of the

General Terms and Conditions of this Tariff. HIOS may waive, in whole or

in part, any overrun penalty provided for herein, if, in HIOS' sole

discretion, such penalty was incurred due to circumstances beyond

Shipper's control.

4.8 Required Reports. HIOS shall file with the Commission any and all

reports as required by the Commission's Regulations setting forth the

applicable charge, the individual Shipper(s) affected, the volume

transported, and provisions for discounts and any other information

which may be required.

4.9 Rate Changes. Subject to any rights or limitations imposed by additional

Transportation Agreement provisions agreed to by Shipper and Transporter,

Transporter may from time to time and at any time selectively adjust any

or all of the rates charged to any individual Shipper for which a Maximum

Rate and Minimum Rate are stated on Sheet No. 10 of this Tariff;

provided, however, that such adjusted rate(s) shall not exceed the

applicable Maximum Rate(s), nor shall they be less than the Minimum

rate(s), set forth on such sheets. Transporter shall have the right to

charge the Maximum Rate at any time as a condition of service under an

existing Agreement. Transporter shall make all information filings

required by the Commission's regulations with respect to any charges at

less than the Maximum Rate. Whenever Transporter adjusts the rate to be

charged to a Shipper pursuant to this Section 4.8, notice thereof shall

be given to Shipper not less than seventy-two (72) hours prior to the

effective date of such adjustment.

5. REQUESTS FOR FT-2 TRANSPORTATION SERVICE

5.1 Any party desiring transportation service under Rate Schedule FT-2 must

provide to HIOS the information required by Section 2 of the General

Terms and Conditions and the following information in order to qualify

for transportation service:

i. Production Profile. The MDQ to be transported shall be supported

by a life of reserves production forecast for the Committed

Lease(s) prepared by Shipper or the operator(s) of the Committed

Lease(s), which reflects production build-up and expected

production throughout the life of the lease. Shipper may request

a separately stated MDQ under its FT-2 Agreement for specified

delivery periods of not less than 3 consecutive months,

hereinafter the "Delivery Periods"; provided, however, such

separately stated MDQs must be supported by a life of reserves

production forecast for the Committed Lease(s) provided

hereunder; and provided