High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 06/01/2004, Docket: RP04- 47-000, Status: Effective

Original Sheet No. 222 Original Sheet No. 222 : Effective

NGL BANK AGREEMENT

This NGL Bank Agreement ("Agreement") is made and entered into this _____ day

of ____________, ______, between SPL Incorporated ("Administrator"),

_______________________________ ("Shipper") and High Island Offshore System, L.L.C.

("Transporter").

WHEREAS, Transporter owns the High Island Offshore System ("HIOS"); and

WHEREAS, Shipper's gas is transported on HIOS pursuant to Transportation

Agreement(s) between Shipper and Transporter; and

WHEREAS, Participating in this NGL Bank is a condition of receiving service

on HIOS; and

WHEREAS, Administrator has agreed to administer such an NGL Bank for the

benefit of all shippers on HIOS in accordance with the terms and conditions contained

herein;

NOW THEREFORE, in consideration of the mutual covenants of the parties,

Administrator, Shipper and Transporter agree as follows:

ARTICLE I - PURPOSE

The purpose of the NGL Bank is to provide a mechanism by which to mitigate inequities

in gas processing economics that may occur among shippers on HIOS as a result of such

shippers' gas streams containing different NGL (as defined herein) compositions being

commingled in a pipeline with multiple delivery points located upstream of gas

processing plants ("Plants"). Participation in the NGL Bank is a condition of

receiving service on HIOS. Transporter's obligation to accept gas tendered by Shipper

at the Points of Receipt and to deliver Equivalent Volumes, as defined in Transporter's

FERC Gas Tariff, at the Points of Delivery under the provisions of a Transportation

Agreement shall not be modified by any provision of this Agreement. Shipper

acknowledges that Transporter is not obligated to deliver to any shipper at a Point of

Delivery the same volume of NGL's as it received from that shipper at a Point of

Receipt.

ARTICLE II - DEFINITIONS

2.1 Natural Gas Liquids or NGL's are hydrocarbons produced with a gas stream and

include natural gasoline (pentanes plus heavier hydrocarbons), butanes, propane

and ethane. These components are present in the vapor phase in a gas pipeline

and may be condensed to a liquid phase and extracted by a Plant. The

concentration of each NGL component in the vapor phase in a gas stream is

expressed either as mole percent or as gallons per Mcf of gas ("GPM"). NGL's

are Plant products and do not include either injected condensate or retrograde

condensate.