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. 114 Fourth Revised Sheet No. 114 : Effective

Superseding: Substitute Third Revised Sheet No. 114

GENERAL TERMS AND CONDITIONS

(Continued)

Volumes shall be curtailed in the following order: (1) pro rata among both

requests for overrun service and confirmed nominations for service under Rate

Schedule IT, up to the Maximum Daily Volumes of the shippers nominating Rate

Schedule IT service; (2) pro rata among confirmed nominations for service under

Rate Schedules FT-1 and FT-2, up to the Maximum Daily Quantities, as applicable,

of the shippers nominating Rate Schedules FT-1 or FT-2 service.

15. CONSTRUCTION OF DELIVERY LATERALS

Unless otherwise agreed to in writing, HIOS shall not be required to construct,

own or operate delivery lateral facilities. In the event that HIOS does agree

to construct, own, or operate delivery lateral facilities, it will do so in a

nondiscriminatory manner, and HIOS may require the reimbursement of the costs

associated therewith as agreed to by the parties. Nothing herein shall require

HIOS to file an application for a certificate of public convenience and

necessity under Section 7(c) of the Natural Gas Act, nor shall anything herein

be construed to authorize the filing of such an application by others on its

behalf. Moreover, nothing herein shall prevent HIOS from contesting an

application for service filed pursuant to Section 7(a) of the Natural Gas Act.

HIOS reserves the right to seek a waiver of the policy set forth herein for good

cause shown.

16. RIGHT OF FIRST REFUSAL

16.1 Purpose of Section. Subject to the procedures and conditions set forth

in the following subsections of this Section 16, an existing firm shipper

that is served by HIOS pursuant to a Transportation Agreement under this

Tariff with a primary term of one year or longer shall be afforded a

right of first refusal, at the end of such primary term or any extension

thereof of one (1) year or longer, to continue its firm capacity

entitlements under the Transportation Agreement. Any such existing firm

shipper is hereinafter referred to as an "Existing Shipper".