High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 05/01/2003, Docket: RP00-407-004, Status: Effective

Second Revised Sheet No. 99 Second Revised Sheet No. 99 : Effective

Superseding: First Revised Sheet No. 99

GENERAL TERMS AND CONDITIONS

(Continued)

HIOS shall acknowledge receipt and acceptance of the PDA by signing and

telefaxing (or returning via some other mutually agreeable means) the

PDA to the Designated Allocator, within fifteen (15) minutes.

7.7 Changes in Predetermined Allocations. The PDA accepted by HIOS will

continue in effect through the end of the period covered by the PDA

unless the Designated Allocator submits a revised PDA. Submittal of a

revised PDA, and acceptance by HIOS, shall be substantially as described

in Section 7.7 above. The Designated Allocator shall furnish HIOS with

the revised PDA after or during confirmation of nominations and before

the start of the gas day for which the proposed change is to take effect.

7.8 Scheduling of Transportation and Allocation of Capacity. For each day,

HIOS will schedule receipts and deliveries of gas on the basis of: (1)

transportation nominations and timely notices of changes made by Shippers

or Shipper's Nominating Agent, which HIOS is hereby authorized to rely

upon in its schedule; (2) transportation capacity available on HIOS'

System and portions thereof in light of such nominations and requests;

(3) proposed points of receipt and of delivery; and (4) overall operating

conditions from time to time.