High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 10/01/2009, Docket: RP09-487-001, Status: Effective

Substitute Third Revised Sheet No. 67 Substitute Third Revised Sheet No. 67

Superseding: Second Revised Sheet No. 67

GENERAL TERMS AND CONDITIONS

(Continued)

1.15 The term "Short Haul Volumes" shall mean all volumes from offshore blocks

delivered to HIOS transmission facilities located north of High Island

Block 264 and at or south of West Cameron Block 167.

1.16 The term "Long Haul Volumes" shall mean all volumes from offshore blocks

delivered to HIOS gathering facilities located at or south of High Island

Block 264.

1.17 The term "Currently Effective Contract Demand" shall mean the aggregate

of the maximum daily volumes of Gas, expressed in Dth per day, which HIOS

is obligated to accept for transportation for the account of each firm

shipper under HIOS' F.E.R.C. Gas Tariff, Third Revised Volume No. 1.

1.18 The term "System" shall mean the pipeline and related facilities at the

time owned by HIOS.

1.19 The term "Unaccounted for Gas" shall mean the difference between the sum

of all input volumes of Gas to the System and the sum of all output

volumes of Gas from the System, which difference shall include but shall

not be limited to Gas vented (other than gas vented pursuant to Section

7.13) and Gas used and accounted for in pipeline operations, and Gas lost

as a result of an event of force majeure, the ownership of which cannot

be reasonably identified, adjusted to such degree as is practicable for

variations in Gas volumes due to the transportation of Associated Liquids

during any given period of time.

1.20 The term "Maximum Daily Volumes" shall mean a maximum daily volume (MDV)

of Gas and Associated Liquids, expressed in Dth, stipulated by Shipper

and HIOS from time to time for delivery at each Point of Receipt or Point

of Delivery, the aggregate of all such stipulated MDVs at Points of

Receipt or Points of Delivery, respectively, not to exceed the MDQ.

1.21 The term "Operator" shall mean the entity selected by HIOS and which has

entered into a service agreement with HIOS to operate the HIOS system.