Tres Palacios Gas Storage LLC

Original Volume No. 1

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Effective Date: 08/01/2008, Docket: RP08-424-000, Status: Effective

Original Sheet No. 23 Original Sheet No. 23






6.2 TRES PALACIOS shall have the right to propose to FERC or

any other governing regulatory body such changes in its rates and

terms of service as it deems necessary, and the Firm Storage

Service Agreement executed by the parties shall be deemed to

include any changes which are made effective pursuant to order or

regulation or provisions of law, without prejudice to Customer's

right to protest the same; provided however, that any market-based

rates negotiated between TRES PALACIOS and its Customer(s) shall

remain in effect during the term(s) of the Firm Storage Service

Agreement(s) specifying such rates.




If, due to an emergency situation or when unexpected capacity

loss occurs after scheduling, TRES PALACIOS' capability to receive

or deliver quantities is impaired so that TRES PALACIOS is unable

to receive or deliver the quantities provided for in its Storage

Service Agreements with Customers for Firm Storage Services, then

capacity, withdrawals and/or injections will be allocated

according to the priority of service as set forth in Section 5 of

the General Terms and Conditions of this FERC Gas Tariff.




8.1 Upon expiration without renewal or upon termination of

Customer's Firm Storage Service Agreement, any of Customer's Gas

remaining in the TRES PALACIOS storage facility shall be deemed

sold to TRES PALACIOS at a price equal to 80% of the price

realized for such Gas pursuant to an auction held in accordance

with Section 32 of the General Terms and Conditions of this FERC

Gas Tariff. However, if Customer was unable to withdraw its FSS

Gas quantities due to an interruption of Customer's withdrawal

service by TRES PALACIOS during the last ten Days before

termination, Customer shall be allowed to withdraw its Gas within

a reasonable period following the end of the contract term.


8.2 Payment for the remaining quantities of Gas shall appear

as a credit on the last statement rendered by TRES PALACIOS to

Customer. To the extent that the credit exceeds the total charges

in that statement, the difference shall be paid by TRES PALACIOS

to Customer on or before the 25th day of the Month following the

Month of such expiration or termination.


8.3 In the event that TRES PALACIOS purchases and takes

title to any of Customer's Gas pursuant to this Section 8, TRES

PALACIOS shall dispose of such Gas by auction and shall credit the

net proceeds received from such auction in accordance with the

provisions of Section 32 of the General Terms and Conditions of

this FERC Gas Tariff.