High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-221-000, Status: Effective

Third Revised Sheet No. 126 Third Revised Sheet No. 126 : Effective

Superseding: Second Revised Sheet No. 126

GENERAL TERMS AND CONDITIONS

(Continued)

17.4(e) The minimum reservation charge at which the Releasing Shipper

is willing to make the capacity available within the range from

$0 to the maximum reservation charge specified on the then-

effective Sheet No. 10 of this Tariff, or higher if applicable

pursuant to Section 17.2(e) hereof, and, for Prearranged

Transactions, the reservation charge that would be paid for the

capacity or for a release on a volumetric basis, the volumetric

commitments, and/or any other minimum conditions. The rate

specified may be in dollars and cents or percents of maximum

tariff rates, but in any event, Releasing Shipper must state

any rates equal to the number of decimal places in the stated

rates per HIOS' rate schedules. The maximum/minimum rates

specified by the Releasing Shipper shall include the tariff

reservation rate and all demand surcharges, as a total number

or as stated separately.

17.4(f) Whether the release of capacity in the proposed release or the

Prearranged Transaction, as applicable, would be subject to

interruption or recall, and, if so, the non-discriminatory

conditions, consistent with subsection 17.12(e) of the Section

17, under which the capacity may be interrupted or recalled;

17.4(g) If capacity is interrupted or recalled, whether the Replacement

Shipper will have option to refuse the capacity after a recall

or interruption has ended;

17.4(h) Whether the Releasing Shipper wants HIOS to actively market the

Release Proposal;