High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/01/2000, Docket: RP99-227-004, Status: Effective

Original Sheet No. 35 Original Sheet No. 35 : Effective


Rate Schedule FT-2

Firm Transportation Service



Exhibits A and B to the FT-2 Agreement to conform the MDQs with

the updated production profile, subject to the availability of

capacity. Any changes in MDQs under this Section shall be

effective January 1 of each year, provided that Shipper has

provided HIOS with a timely update of the production profile as

provided herein. When considering a system expansion or

evaluating a Shipper's request to increase its MDQ or a Shipper's

request for a permanent release of quantities of production from

Committed Lease(s) under the Reserve Commitment Agreement, HIOS

may request that Shipper update its production information to

support its MDQs.


6.2 No more than one time in any calendar year, if in HIOS'S

reasonable judgment the submitted estimated production profile

(including updates) and MDQs provided in Section 5.1 or Section

6.1 are not reasonable, then, subject to a mutually acceptable

confidentiality agreement, HIOS and Shipper shall meet and review

the associated technical data that is the basis for the

estimated production profile submitted by Shipper. HIOS and

Shipper shall make a good faith attempt to concur on an

estimated production profile which shall be utilized pursuant to

this Section. If the parties cannot reach agreement on an

estimated production profile and MDQs, then the technical data

shall be supplied to a mutually agreeable engineering firm to

develop an estimated production profile which shall be utilized

pursuant to this Section. Such engineering firm shall not

have been previously retained by Shipper or and other Shipper(s)

holding an interest in the Committed Lease(s) for any analysis of

the Committed Lease(s) prior to the Shipper or other Shipper(s)

entering into their respective FT-2 Agreement. All such

engineering firm costs shall be equally borne by Shipper and

HIOS. Upon completion of such engineering firm report, HIOS and

Shipper shall amend Exhibits A and B to the FT-2 Agreement to

reflect the MDQs supported by such production profile to the

extent capacity on the system is available.


6.3 Shipper shall have the right for any reason, at any time and from

time to time, to permanently change in whole or in part, the MDQs

under its FT-2 Agreement, for any Delivery Period(s) set forth on

Exhibit A hereto, on six (6) months prior written notice to HIOS;

provided, however, that the MDQ shall not be less than 1,000