High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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

Original Sheet No. 234 Original Sheet No. 234 : Effective

 

 

 

NGL BANK AGREEMENT (Continued)

 

 

EXHIBIT "A" TO NGL BANK AGREEMENT

 

EXAMPLE OF REPRESENTATIVE SHIPPER'S MONTHLY RECEIPT SETTLEMENT

 

 

In this example calculation, Shipper 1 would receive a payment from the NGL Bank for the Month.

Ethane gross margin is negative, propane gross margin is positive and processing is not required.

 

 

Receipts to NGL Bank Weighted

Shipper's NGL Average

Components Point of Receipt 1 Point of Receipt 2 Point of Receipt 3 Point of Receipt 4 NGL

GPM Shipper 1 Shipper 2 Shipper 3 Shipper 4 Shipper 5 Shipper 6 Components

C2 1.33 1.33 1.07 1.07 0.81 0.73 1.097

C3 0.74 0.74 0.60 0.60 0.45 0.40 0.611

iC4 0.24 0.24 0.19 0.19 0.14 0.13 0.195

nC4 0.21 0.21 0.17 0.17 0.13 0.11 0.174

C5+ 0.44 0.44 0.36 0.36 0.27 0.24 0.365

Total 2.96 2.96 2.39 2.39 1.80 1.61 2.442

Btu/cf 1160 1160 1130 1130 1100 1090 1133

Volume (Mcf) 3,000,000 1,500,000 1,500,000 1,500,000 3,000,000 300,000 10,800,000

Volume (Dth) 3,480,000 1,740,000 1,695,000 1,695,000 3,300,000 327,000 12,237,000

 

 

Shipper 1 Revenue Difference for Point of Receipt 1

Shipper's GPM Representative Theoretical Plant Representative NGL Transportation Theoretical

Difference From Recovery NGL Recovery Settlement Sales Price and Fractionation Revenue

Components Weighted Average Factors gallons gallons ¢/gallon $ $

C2 0.233 0% 0 0 35.00 $0 $0

C3 0.129 96% 371,200 315,520 56.00 $12,621 $164,070

iC4 0.045 100% 134,167 114,042 65.50 $4,562 $70,136

nC4 0.036 100% 108,333 92,083 61.25 $3,683 $52,718

C5+ 0.075 100% 225,000 191,250 71.25 $7,650 $128,616

Total 0.518 838,700 712,895 $28,516 $415,540

 

Plant Settlement Basis Commodity Rate

% ¢/gallon

85% 4