High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective

Original Sheet No. 68 Original Sheet No. 68 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

1.22 The term "Business Day" shall mean Monday through Friday,

excluding Federal Banking holidays.

1.23 The term "Authorized Overrun" shall mean nominations of a

Shipper, in excess of contract MDV's, that HIOS is obligated

to schedule and transport, to the extent of available

capacity, under Section 7.8 of the General Terms and

Conditions.

1.24 The term "Unauthorized Overrun" shall mean a delivery of gas

to any HIOS receipt point, by a HIOS shipper, without a

nomination for service at that receipt point, as authorized

by HIOS in whole or in part under the scheduling provisions

of Section 7.8 of the General Terms and Conditions.

1.25 The term "Spot Market Price" shall mean the cost of gas as

reported in the Natural Gas Week, Gas Price Report, Texas

Gulf Coast, Offshore.

1.26 The term "nomination period" shall mean that period of time

that the Shipper includes in a nomination for gas service.

All nominations must include begin and end dates which shall

not exceed the term of the Shipper's contract, and shall not

be less than one day.

1.27 The term "Nominating Agent" shall mean the party, other than

the Shipper, who has been designated in writing by the

Shipper to act as Shipper's agent in providing nominations

and nomination changes to the Transporter, and to be

responsible for all other nomination related activities.

Transporter will assume that the designated Nominating Agent

will remain the same from month to month, until otherwise

changed or revoked in writing by the Shipper.

1.28 The term "Designated Allocator" shall mean the production

operator at the individual HIOS measurement point, or an

alternate party designated by the production operator, who

will be responsible for providing HIOS with the required

predetermined allocations at such HIOS measurement point.