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. 37 Original Sheet No. 37






(c) The withdrawal from storage on any Day of Customer's Gas per

Customer's nomination up to Customer's Maximum Daily Withdrawal

Quantity ("MDWQ") as stated in the executed Interruptible Storage

Service Agreement and the delivery of such Gas to the Point(s) of

Delivery, provided that all Firm Storage Service nominations for

withdrawal have been satisfied and Customer has a quantity of Gas

in Customer's Interruptible Storage Inventory not less than the

quantity Customer shall have nominated for withdrawal on such Day.


2.2 To the extent Interruptible storage capacity which is

being utilized by an Interruptible Customer hereunder is needed by

TRES PALACIOS in order to satisfy TRES PALACIOS' obligations to

Firm Storage Service Customers, TRES PALACIOS shall require

Customer to withdraw all, or any portion of, the ISS Gas

quantities held in storage by TRES PALACIOS for the account of

Customer as specified by TRES PALACIOS. Unless TRES PALACIOS

otherwise agrees, Customer shall be required to make ratable

withdrawals. If Customer fails to withdraw such ISS Gas from

storage, TRES PALACIOS may take, free and clear of any adverse

claims, title to such ISS Storage Inventory as Customer was

instructed to withdraw. TRES PALACIOS' notice to Customer may be

given orally, but shall be confirmed in writing via e-mail or

facsimile to the Customer.


In the event that TRES PALACIOS retains and takes title to

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

shall credit the value of such gas, net of any costs incurred by

TRES PALACIOS to take title to and/or resell such Gas, in

accordance with the provisions of Section 32 of the General Terms

and Conditions of this FERC Gas Tariff.


In the event TRES PALACIOS needs to require Customer to

withdraw its Gas from storage pursuant to this Section, TRES

PALACIOS shall provide day-ahead notice to Customer that it must

withdraw Gas at its MDWQ during the next Gas Day. TRES PALACIOS

shall repeat this notice on a daily basis until all of Customer's

Gas is withdrawn from storage or until the circumstances

necessitating interruption are alleviated. In the event Customer

makes a timely nomination in response to a notification by TRES

PALACIOS pursuant to this paragraph, Customer's obligation to

comply with that notification shall be tolled until such time as

TRES PALACIOS' operational conditions allow TRES PALACIOS to

schedule the nomination.




Customer shall pay rates and charges for Interruptible

storage service under this Rate Schedule including the applicable

storage rate components set forth in the ISS Rate Statement and as

described below:


(a) Storage Inventory Charge. A usage charge for each

Dth of Gas in Customer's Storage Inventory pursuant to Section

2.1(b) of this Rate Schedule at the end of each Day, for each Day

during a given Month.