High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 10/01/2007, Docket: RP06-540-004, Status: Effective

Fifth Revised Sheet No. 64 Fifth Revised Sheet No. 64 : Effective

Superseding: Substitute Fourth Revised Sheet No. 64

GENERAL TERMS AND CONDITIONS

1. DEFINITIONS

1.1 The term "Administrator" shall mean SPL Incorporated or its successor-in-

interest to the NGL Bank Agreement.

1.1A The term "Associated Liquids" shall mean condensate (without free water)

produced in conjunction with the production of Gas to be transported in

the System and liquefiable hydrocarbons contained in such Gas but not

including oil.

1.2 The term "Btu" shall mean one (1) British thermal unit, the amount of

heat required to raise the temperature of one (1) pound of water one (1)

degree Fahrenheit at sixty (60) degrees Fahrenheit. (Btu is measured on

a dry basis at 14.73 psia).

1.3 The term "Maximum Daily Quantity" shall mean the aggregate of the

Maximum Daily Volumes of Gas, expressed in Dth per day, which HIOS,

subject to Rate Schedules FT-1, FT-2, and IT and the terms and

provisions of the Transportation Agreement executed by HIOS and the

Shipper, has agreed to accept for transportation for the account of

Shipper from the Points of Receipt as set forth in Exhibits A and B of

the Transportation Agreement.

1.4 The term "Central Time" shall mean Central Clock Time, which includes the

recognition of Daylight Savings Time.

1.5 The term "Day" or "Gas Day" shall mean a period of 24 consecutive hours,

ending at 9:00 a.m. Central Time.

1.6 The term "Equivalent Volumes" shall mean the sum of the volumes of Gas as

expressed in Dth received by HIOS for the account of Shipper at the Points

of Receipt identified in Exhibits A and B of the Transportation Agreement

during any given period of time, reduced by the Company Use Percentage

described in Section 28.