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 First Revised Sheet No. 107 Substitute First Revised Sheet No. 107 : Effective

Superseding: Original Sheet No. 107

GENERAL TERMS AND CONDITIONS

(Continued)

(b) The Average Monthly Index Price (AMIP) is the arithmetic average

of the Weekly Index Prices (WIPs). The WIP for any week is the

arithmetic average of the following two index prices reported in

"Gas Price Report" issued by "Natural Gas Week":

(1) Louisiana, Gulf Coast, Onshore, Spot Delivered to

Pipeline; and

(2) Louisiana, Gulf Coast, Offshore, Spot Delivered to

Pipeline.

In calculating the AMIP, the WIPs will be based on the prices

reported in the issue of "Natural Gas Week" dated on or after

HIOS' nomination deadline for first of the month service for that

month, and the subsequent issues dated prior to HIOS nomination

deadline for the following month's first of the month service.

(c) Shippers with any remaining TMI shall pay HIOS or will be

credited with the appropriate cashout amounts.

(d) In the event "Natural Gas Week" ceases to publish entirely or

fails to publish the index prices listed in subsection (b) above,

the following procedures shall apply in determining a month's

AMIP:

(1) Should, in any given week, "Natural Gas Week" fail to

publish one of the two index prices used in determining

that week's WIP, the WIP will be determined using the

remaining published index price.

(2) Should, in any given week, "Natural Gas Week" fail to

publish both of the index prices used in determining that

week's WIP, there will be no WIP for that week used in

determining the month's AMIP.

(e) In the event the foregoing prices are no longer available or

valid, HIOS will file to change the Tariff and may, at its

discretion, select a representative price in the interim

period, subject to adjustment.