High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-418-000, Status: Effective

Second Revised Sheet No. 146 Second Revised Sheet No. 146 : Effective

Superseding: First Revised Sheet No. 146

GENERAL TERMS AND CONDITIONS

(Continued)

Releasing Shipper that has released capacity subject to a right

of recall must provide HIOS and the Replacement Shipper to whom

the capacity was released with notice of its intent to recall

capacity. The notice shall identify, by volume, receipt point,

and delivery point, the capacity being recalled, and state

whether the recall is permanent or temporary and, if the

latter, the duration of the recall. Any Replacement Shipper

that wants to release capacity that was released to it, subject

to interruption or recall, must fashion its own release of the

capacity so as to accommodate the conditions of interruption or

recall.

17.12(f) Permanent Release. If a Releasing Shipper releases capacity

for the remaining term of its Transportation Agreement and

the Replacement Shipper has agreed to pay the maximum rates,

or higher if applicable pursuant to Section 17.2(e) hereof,

and executes a Transportation Agreement with HIOS where

under all of the Releasing Shipper's obligations have been

assumed, the Releasing Shipper may request from HIOS a

release from its obligations under the underlying

Transportation Agreement; subject to the approval of HIOS'

creditors to whom said Transportation Agreement has been

pledged, HIOS shall act on Releasing Shipper's request for

release from its obligations on a non-discriminatory basis,

and shall not unreasonably withhold approval thereof.

Inasmuch as the Replacement Shipper must at all times meet

HIOS credit-worthiness standard under Section 5 of the

General Terms and Conditions, the criteria for creditor's

approval shall generally be satisfied thereby, absent

extenuating circumstances.