High Island Offshore System, L.L.C.

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 235 Original Sheet No. 235 : Effective

NGL BANK AGREEMENT (Continued)

EXHIBIT "A" TO NGL BANK AGREEMENT (Continued)

EXAMPLE OF REPRESENTATIVE SHIPPER'S MONTHLY RECEIPT SETTLEMENT

Shipper 1 Expenses Transportation Cost Theoretical

Heat Content Shrinkage Cost Plant Fuel Cost Plant Fuel and Shrinkage Gross Margin

Components Dth/gallon $ $ $ $ $

C2 0.066369 $0 $0 $0 $0 $0

C3 0.091599 $136,006 $23,757 $2,396 $1,278 $633

iC4 0.099652 $53,480 $8,587 $931 $497 $6,641

nC4 0.103724 $44,947 $6,933 $778 $415 -$355

C5+ 0.112000 $100,800 $14,400 $1,728 $922 $10,766

Total $335,233 $53,677 $5,833 $3,112 $17,685

Value of Btu's Plant Fuel Use Commodity Rate Transportation Fuel

$/Dth Dth/gallon ¢/Dth %

$4.00 0.016000 6.0 0.8%

Shipper 1 Monthly Summary

Theoretical Revenue $415,540 Administrative Fee

Shrinkage Cost $335,233 $2,500 Monthly Fee

Plant Fuel Cost $53,677 $100 Per Point of Receipt Fee

Transportation Cost $8,945 4 Points of Receipt

Theoretical Gross margin $17,685 $2,900 Total Monthly Fee

Administrative Fee $825 $825 Shipper 1 Pro Rata Fee

Shipper 1 Credit/(Debit) $16,860

Procedure Notes

For positive processing economics:

Receipts into NGL Bank at above weighted average NGL content - Credit to Shipper

Receipts into NGL Bank at below weighted average NGL content - Debit to Shipper

For negative processing economics:

Receipts into NGL Bank at above weighted average NGL content - Debit to Shipper

Receipts into NGL Bank at below weighted average NGL content - Credit to Shipper