High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/01/2000, Docket: RP99-227-004, Status: Effective

Original Sheet No. 211 Original Sheet No. 211 : Effective

 

 

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

EXHIBIT B

(Continued)

 

Assume, for this example, Transporter informs Shipper that it has

25,000 Dth/d of additional MDQs available to Shipper under its FT-2

Service Agreement effective 6/l/2001 and another 30,000 Mcf/d of

additional MDQs available to Shipper under its FT-2 Service Agreement

beginning 1/l/2002.

 

Permanent Release Quantities:

 

1. Shipper's Permanent Release Quantities are up to: 5,000 Dth/day

during 7/l/2001 through 12/31/2002; 20,000 Dth/day during

1/l/2002 through 12/31/2003, and 0 beginning 1/l/2004 (see

below):

 

7/l/2001

through 130,000 - 125,000 (FT-2) = 5,000 Dth/day

12/31/2001

 

1/1/2002

through 175,000 - 155,000 (FT-2) = 20,000 Dth/day

12/31/2003

 

beginning 120,000 - 125,000 (FT-2) = 0 permanent

1/1/2004 release

quantities

 

2. If Shipper's actual production in calendar year 2002 is 165,000

Dth/day, only 10,000 Dth/day will be released (last quantities

produced rule).

 

 

_____________________

This example is for illustrative purposes only. The actual

application of any permanent releases shall be governed by the

provisions of Section 2.5.