High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 09/01/2000, Docket: RP00-439-000, Status: Effective

Original Sheet No. 214 Original Sheet No. 214 : Effective

SYSTEM LICENSE AGREEMENT (continued)

3.2 With respect to requests for new transportation service, Subscriber, at the time

that it executes on-line its request in accord with Section 3.1 above, agrees to

be bound by the terms and conditions of the pro-forma service agreement contained

in Pipeline's FERC Gas Tariff which corresponds to the Rate Schedule under which

the Subscriber is seeking service, as modified to incorporate the terms of the

service request.

3.3 With respect to requests for modifications to meters in an existing service

agreement between Subscriber and Pipeline, the Subscriber agrees to be bound by

the terms and conditions of the pro forma contract amendment contained in

Pipeline's FERC Gas Tariff, as modified to incorporate the meter modifications

executed on-line by Subscriber.

ARTICLE IV - RELEASE AND DISCLAIMER OF LIABILITY/INDEMNIFICATION

4.1 Except for the negligence, bad faith, fraud or willful misconduct of Pipeline,

Pipeline expressly disclaims any and all liability for loss or damage to

Subscriber or to any third parties associated with Subscriber's use of the System,

including but not limited to any loss or damage resulting from any one or more of

the following: (1) Subscriber's negligent or otherwise improper use of the

System; (2) any unauthorized use of the System, whether by Subscriber,

Subscriber's employees or former employees, or by any other persons; (3) any acts

of God or force majeure, as defined in Article X of Transporter's General Terms

and Conditions, and also including electrical shortage and/or power outages; (4)

any defects in computer hardware; (5) any interruption in or malfunction of

electronic communication or transmission not within the Pipeline's control. Such

causes or contingencies affecting the performance of this Agreement shall not

relieve Pipeline of liability in the event (a) it fails to use due diligence to

remedy the situation and remove the causes or contingencies affecting performance

of this Agreement or (b) it fails to give Subscriber notice and full particulars

of the same in writing or by telegraph or facsimile as soon as possible after the

event or situation arises.

4.2 Subscriber agrees to protect, defend, indemnify, and hold harmless Pipeline

against any and all loss, costs, damages, and expenses of any nature whatsoever

(including court costs and reasonable attorney's fees), resulting from or

otherwise related to any claim, demand, or action asserted against Pipeline,

arising from or connected with Subscriber's use of the System except for the

negligence, bad faith, fraud or willful misconduct of Pipeline.