Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP08-436-004, Status: Effective

Substitute Original Sheet No. 211 Substitute Original Sheet No. 211

(c) In evaluating the timing and costs of repairing its

facilities, it shall be prudent for Stingray to (1)

consider the time of the Year in which any Event

damage repair occurs, (2) incur Eligible Costs

reflecting high demand for offshore repair services

and equipment (for example, special barges) at the

time of or after the Event occurred, (3) incur

Eligible Costs as necessary to return its pipeline

system (or any part thereof) damaged by the Event back

into service as soon as possible, including but not

limited to in response to urging by any governmental

authority, and (4) incur costs to arrange for

temporary housing, meals, travel and other necessities

for personnel to be available to repair Stingray's

system.

(d) Prior to making an Event Surcharge filing, Stingray

shall provide a draft of the Event Surcharge to its

shippers and offer to meet with its shippers in

Houston, Texas to preview the filing and answer any

questions.

(e) By each March 1, Stingray shall file with the

Commission an annual report setting forth (1) all the

revenue Stingray has collected through the Event

Surcharge, (2) all the Eligible Costs it has incurred,

and (3) any Insurance Recoveries and other recoveries

from third parties of Eligible Costs previously

included in the Event Surcharge Cost Account, for each

Month during the 12-Month period ending on the same

date of the Event Surcharge Cost Account balance used

by Stingray in its revision to the Event Surcharge

filed on or before the same March 1. Interested

parties shall have the right to protest any such

annual filing.

36.4 EVENT SURCHARGE COST ACCOUNT

Stingray shall establish and maintain separately an Event

Surcharge Cost Account as follows:

(a) Each Month, the Event Surcharge Cost Account shall be

(1) debited by the Eligible Costs incurred that Month,

(2) credited by any Insurance Recoveries and other

recoveries from third parties for that Month of any

Eligible Costs previously debited to the Event

Surcharge Cost Account, (3) credited by the revenue

collected by Stingray that Month through collection of

the Event Surcharge, and (4) debited or credited, as

appropriate, each Month by carrying charges calculated

at the FERC-prescribed interest rate on the monthly

balance of the Event Surcharge Cost Account for the

prior Month.