High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-244-001, Status: Effective

Substitute Original Sheet No. 105A Substitute Original Sheet No. 105A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(ii) HIOS Participation in Trading. From Month to Month, HIOS may

experience imbalances in its own gas account that it desires to

eliminate and will offer such imbalances for trading to Shippers on

a non-discriminatory basis. Any Shipper desiring to trade

imbalances with HIOS should notify HIOS in writing of its election

of HIOS as a trading partner. Each Month, HIOS will post any

imbalance that it has to trade so that Shippers may trade during the

trading window described in Section 8.3(c)(i). In the event that

HIOS has requests from Shippers to trade quantities that exceed

those which HIOS has available for trade, then HIOS shall allocate

on a pro-rata basis, among all requesting Shippers, those quantities

that it has available for trade.