High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Fourth Revised Sheet No. 100 Fourth Revised Sheet No. 100 : Effective

Superseding: Substitute Third Revised Sheet No. 100

GENERAL TERMS AND CONDITIONS

(Continued)

7.9 Receipt and Delivery Point Priority

7.9(a) HIOS shall schedule the receipts and deliveries of gas of each

Shipper, on each day, in sequence, from highest to lowest

priority, as follows: (1) first, among HIOS' firm Rate Schedules

FT-1, and FT-2 transportation customers at Primary Points of

Receipt and Primary Points of Delivery, up to each such

customer's Maximum Daily Quantity, as applicable; (2) second,

among HIOS' firm Rate Schedules FT-1, and FT-2 transportation

customers at Secondary Points of Receipt and Secondary Points of

Delivery only within the Primary Path, up to each such customer's

Maximum Daily Quantity, as applicable; (3) third, among HIOS'

firm Rate Schedules FT-1, and FT-2 transportation customers at

any points outside of the Primary Path, up to each such

customer's Maximum Daily Quantity, as applicable; (4) fourth,

among HIOS' interruptible Rate Schedule IT transportation

customers, up to each such customer's Currently Effective Maximum

Daily Quantity, as applicable, and all overrun service. In the

event that nominations received in sequencing category (1), (2)

or (3) above exceed the capacity available, then the available

capacity shall be allocated pro rata based on the nominations

received in each such category. In the event that the

nominations received in sequencing category (4) above exceed the

capacity available to that individual sequencing category, then

the available capacity shall be allocated within the sequencing

category as follows: first, on the basis of the price paid to

HIOS for the service being nominated, with the nominated service

paying the highest price receiving the highest priority; and if

insufficient capacity still remains, then on the basis of the

date of the service agreement underlying the nomination, with the

nomination under the service agreement having the oldest date

receiving the highest priority, provided that, in the event of a

tie in service agreement dates, then pro rata among the tieing

service agreements based on the nominations received under each

of the tieing agreements.