High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Original Sheet No. 142 Original Sheet No. 142 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

the posting be extended for an additional 30-day

period, at any time prior to the end of the period.

17.9(d) Any agreement for the release of capacity between a

Releasing Shipper and the prospective Replacement

Shipper that posted the Release Request shall be

subject to all requirements of this Section 17 that

pertain to such a transaction, including the

applicable posting and competitive bid requirements

of subsections 17.4, 17.5, and 17.6.

17.10 Active Marketing of Release Proposals by HIOS. If a

Releasing Shipper requests that HIOS actively market its

Release Proposal, HIOS will inform the Releasing Shipper

whether HIOS is willing to pursue the possibility of

providing active marketing service. HIOS and the Releasing

Shipper shall negotiate the terms of any marketing service

to be provided by HIOS and the marketing fee to be paid HIOS

for such service. HIOS shall be under no obligation to

actively market a Release Proposal on terms to which it has

not agreed.

17.11 Qualification for Participation in the Capacity Release

Program.

17.11(a) In order to qualify for participation in a

Prearranged Transaction or to submit a Qualified

Bid for a posted Release Proposal, a prospective

Replacement Shipper must first:

(i) 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

(ii) Provide to HIOS a statement of its willingness and

ability to: (1) execute a