High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective

Original Sheet No. 111 Original Sheet No. 111 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

considered "disputed", Shipper must provide remittance

detail identifying which portion of the statement amount is

being disputed and appropriate documentation supporting and

identifying the basis for the dispute, in accordance with

10.3.

10.3 Adjustment of Billing Errors. Subject to the provisions of

Sections 3.10 and 3.12 hereof, if an error is discovered in

the allocated quantities, the rate billed, or any other item

in any statement rendered by HIOS, Shipper shall make a

claim therefor within six (6) months of the date of such

statement. HIOS shall have three (3) months from the date

the claim is made to dispute or resolve the claim. If there

is an agreement as to the amount of an error, any adjustment

shall be made within thirty (30) days of the determination

thereof. Such time limits shall not apply in the case of

government required rate changes, deliberate omission or

misrepresentation, or mutual mistake of fact. If the

parties are unable to agree on the adjustment of any claimed

error, any resort by either of the parties to legal procedure,

either at law, in equity, or otherwise, shall be commenced

within 15 months after the supposed cause of action is alleged

to have arisen, or shall thereafter be forever barred.

11. RESPONSIBILITY FOR GAS AND ASSOCIATED LIQUIDS

As between the Parties hereto, Shipper shall be in exclusive

control and possession of the Gas and Associated Liquids until

such have been delivered to HIOS at the Points of Receipt and

after such Gas and Associated Liquids have been redelivered to or

for the account of Shipper by HIOS at the Points of Delivery.

HIOS shall be in exclusive control and possession of such Gas and

Associated Liquids while same are in the System between the Points

of Receipt and the Points of Delivery. As between the parties,

the party which shall be in exclusive control and possession of

such Gas and Associated Liquids shall be responsible for all

injury or damage caused thereby.