High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 10/01/2007, Docket: RP06-540-004, Status: Effective

Third Revised Sheet No. 117 Third Revised Sheet No. 117 : Effective

Superseding: Substitute Second Revised Sheet No. 117

GENERAL TERMS AND CONDITIONS

(Continued)

16.5(c) The period of time that the Qualified Bidder proposes to take

the capacity; and

16.5(d) The reservation charge that the Qualified Bidder proposes to

pay for the capacity.

HIOS shall be under no obligation to accept or consider Qualified Bids

at less than the maximum reservation charge. However, HIOS will inform

the Existing Shipper of the maximum bid that was received, or the fact

that no bids were received.

16.6 Qualification of Bidders. In order to qualify for available capacity,

a prospective shipper must first:

16.6(a) Demonstrate, to HIOS' reasonable satisfaction, that it is

creditworthy in accordance with Sections 2.2(k) and 5 of the

General Terms and Conditions of this Tariff; and

16.6(b) Provide to HIOS a statement of its willingness and ability to:

(1) execute a Transportation Agreement for firm transportation

service in accordance with Rate Schedule FT-1 or FT-2 of this

Tariff; and (2) become a party to the Gas Allocation Agreement

between HIOS and its shippers.

In the interest of expediting HIOS' creditworthiness review, a

prospective shipper may submit to HIOS, at any time, the credit

evaluation materials described in Section 2.2(k) of the General Terms

and Conditions of this Tariff. HIOS reserves the right to request

additional or renewed credit evaluation materials at any time for the

purpose of reviewing a completed creditworthiness evaluation.