High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Second Revised Sheet No. 53 Second Revised Sheet No. 53 : Effective

Superseding: First Revised Sheet No. 53

RATE SCHEDULE IT

INTERRUPTIBLE TRANSPORTATION SERVICE

1. AVAILABILITY

This rate schedule is available to any Shipper in the High Island Offshore

System, L.L.C. (HIOS or Transporter) for the transportation of gas on an

interruptible basis, subject to available capacity in accordance with Section

7.8 of the General Terms and Conditions, where: (1) the Shipper has

demonstrated, to HIOS' reasonable satisfaction, that it is creditworthy in

accordance with Section 5 of the General Terms and Conditions; (2) the Shipper

has executed a Transportation Agreement with HIOS for interruptible service;

(3) the Shipper has become a party to the "Gas Allocation Agreement"; and (4)

the 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.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This rate schedule shall apply to all natural gas transported under a

Transportation Agreement executed with HIOS for interruptible service

under this rate schedule.

2.2 Pursuant to this rate schedule, HIOS will transport gas for Shipper up

to the Maximum Daily Quantity (MDQ) specified in the Transportation

Agreement (Agreement). Shipper may tender gas to HIOS at the Points

of Receipt specified in the 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 specified in said

agreement. If at any time, the capacity in HIOS is insufficient to

transport all of Shipper's nominations as well as nominations of all

other Shippers on HIOS, HIOS will allocate capacity among all shippers

in accordance with the Preliminary Statement of this Tariff and

Section 7.8 of the General Terms and Conditions.

3. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions of this Tariff are applicable to this rate

schedule.