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. 102 Original Sheet No. 102 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

7.13 Limitation on Transporter's Obligation. HIOS is not obligated

to receive for transportation natural gas condensate (without

free water) in excess of 10 barrels per 1000 Dth of Gas delivered

by Shipper to HIOS at any point of receipt. Should Shipper's

deliveries of Gas to HIOS at any point of receipt exceed the MDV

for such point of receipt, HIOS will, in good faith, attempt to

accommodate the same but, in the event any such excess deliveries

would jeopardize the safety of HIOS' operations and/or its ability

to meet its contract commitments to others, such decisions to be

solely within the judgment and discretion of HIOS, HIOS shall have

the right to vent, without any liability to Shipper, or any other

person, all or such part of said excess delivery as HIOS, in its

sole judgment and discretion, deems necessary.

7.14 Adjustments to Equivalent Volumes.

7.14(a) HIOS shall adjust the deliveries of Gas as required

to balance any excess or deficiency variations in

order for Shipper to receive Equivalent Volumes.

Such balancing shall be consistent with the terms

and conditions of the Operational Balancing

Agreement in effect at the related Point of

Delivery, as provided for in Section 7.15, or in

the absence of such Agreement, under terms mutually

agreeable to the parties, provided that any such

terms are consistent with the terms of this Tariff.

7.14(b) In the event the quantities of gas received and to

be delivered are not in balance at the end of the

term of the Transportation Agreement, then such

balance shall be achieved within sixty (60) days by

extending receipts or deliveries as applicable at

the appropriate points of receipt or points of

delivery until such balance is achieved or by such

other method as is then mutually agreed upon by the

parties, including, but not limited to, the

conveyance by one party to the other party of the

quantity of Gas equal to the imbalance, provided

that any such method is consistent with the terms

of this Tariff.