High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 12/15/2007, Docket: RP08- 65-000, Status: Effective

First Revised Sheet No. 173C First Revised Sheet No. 173C : Effective

Superseding: Substitute Original Sheet No. 173C

GENERAL TERMS AND CONDITIONS

(Continued)

29. THIRD PARTY CHARGES

Shipper is responsible for delivering all Gas to Transporter's

system, and shall be free to contract with third party(ies) to

achieve such result. If Shipper requests, and Transporter

agrees, that Transporter shall, for service to Shipper, use

transportation service which Transporter has contracted for with

third party(ies) on behalf of Shipper, Shipper will pay

Transporter an amount equal to the charges Transporter is

obligated to pay to third party(ies) for transportation or other

services attributable to performance of Service on behalf of

Shipper under this Rate Schedule. Such charges include, but are

not limited to, compression fuel charges, compression fees, Gas

handling fees, measurement fees, processing fees, facility rents,

or charges that Transporter pays to a third party for

Transportation of Shipper's Gas, including the third party's

filing and regulatory fees. Such charges, as they may be from

time to time, shall be set forth as separate items on billings

rendered to Shipper.

30. OFF-SYSTEM CAPACITY

From time to time, Transporter may enter into transportation

and/or storage agreements with other interstate and intrastate

pipelines and storage providers ("off-system capacity"). In the

event that Transporter acquires off-system capacity, Transporter

will use such capacity for operational reasons or to render

service for its Shippers. In the event that Transporter uses

off-system capacity to render service for its Shippers, it will

only render service to Shippers on the acquired capacity pursuant

to Transporter's FERC Gas Tariff and subject to Transporter's

approved rates, as such tariff and rates may change from time to

time. For purposes of transactions entered into subject to this

section, the "Shipper must have title" requirement is waived.