Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 3500 Original Sheet No. 3500 GENERAL TERMS AND CONDITIONS Section 2323. Processing Rights 23.1 Transporter and Customer recognize that the right to process gas may have been retained by Customer or Customer's supplier. Such processing shall be for recovery and disposition solely by or for the account of Customer or Customer's supplier of liquefiable hydrocarbons. It is understood that Transporter shall not acquire any right, title or interest under this contract in any products resulting from such processing and Transporter shall not process gas received for transportation hereunder for the extraction of liquefiable hydrocarbons. 23.2 Customer shall execute or cause its supplier or processor to execute a separate agreement with Texas Gas providing for the transportation of any liquids/liquefiables, and shall pay or reimburse Texas Gas, or cause Texas Gas to be paid or reimbursed, for any applicable rates or charges associated with the transportation of such liquids/liquefiables, as specified in this Section 23. 23.3 Associated Liquid Hydrocarbons: Transporter agrees to accept the associated liquid hydrocarbons produced with the gas hereunder and to transport and deliver the same to, or for the account of, Customer or Customer's supplier under the following terms and conditions and such other terms as may be mutually agreeable: (a) Any injection of liquids shall be accomplished at a point immediately downstream from the measurement facilities at the Transporter Receipt Point(s); (b) Injected liquid hydrocarbons shall contain sufficient quantities of corrosion inhibitors and the composition and characteristics of the liquid hydrocarbons shall be such that they will not (i) cause undue formation of hydrates in Transporter's Facilities, (ii) cause undue damage to Transporter's Facilities by internal corrosion, or (iii) cause the gas in said Facilities to fail to meet the Quality Specifications provided for herein after such liquid hydrocarbons have been removed from Transporter's Facilities. The type and quantity of any corrosion inhibitors shall be subject to Transporter's approval prior to the introduction of such inhibitors into Transporter's Facilities; (c) Liquid hydrocarbons with an American Petroleum Institute (API) gravity of less than 40 shall not be transported in Transporter's Facilities. The Bottom Sediment and Water (BS&W) content of the injected liquid hydrocarbons shall not exceed one percent of the total liquid hydrocarbons being injected from any platform at any time. Liquid hydrocarbons with more than 3% hydrocarbon paraffins shall not be transported in Transporter's facilities. If, at any time, the injected liquid hydrocarbons shall fail to conform to these specification, Transportation shall have the right, without advance notice, to refuse to allow injection of liquid hydrocarbons into Transporter's Facilities and shall be absolved of any further obligation to perform pending correction by Customer;