High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Original Sheet No. 83 Original Sheet No. 83 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3.10 Correction of Metering Errors. If, upon any test, any

measuring equipment is found to be in error, such errors

shall be taken into account in a practical manner in

computing the deliveries. If the resultant aggregate error

in the computed receipts or deliveries is not more than 2

percent, then previous receipts or deliveries shall be

considered accurate. All equipment shall, in any case,

be adjusted at the time of test to record correctly. If,

however, the resultant aggregate error in computed receipts

or deliveries exceeds 2 percent at a recording corresponding

to the average hourly rate of gas flow for the period since

the last preceding test, the previous recordings of such

equipment shall be corrected to zero error for any period

which is known definitely or agreed upon, but in no event

shall such period be greater than 6 months. In case the

period is not known definitely or agreed upon, such

correction shall be for a period extending over one-half of

the time elapsed since the date of the last test, not

exceeding a correction period of 16 days.

3.11 Failure of Measuring Equipment. In the event any measuring

equipment is out of service, or is found registering

inaccurately and the error is not determinable by test, or

by previous recordings, receipts or deliveries through such

equipment shall be estimated:

3.11(a) By using the registration of any check meter or

meters, if installed and accurately registering, or in

the absence of (a);

3.11(b) By correcting the error if the percentage of error is

ascertainable by calibration, special test, or

mathematical calculation, or in the absence of both

(a) and (b) then;

3.11(c) By estimating the quantity of receipt or delivery

based on receipts or deliveries during preceding

periods under similar conditions when the measuring

equipment was registering accurately.