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. 205 Original Sheet No. 205 : Effective







(c) Shipper may deliver the quantities released pursuant to

Sections 2.4(a) and/or (b) from any field(s) under its

Committed Lease(s) which Shipper chooses.


2.5 Permanent Release


(a) This Section 2.5(a) applies to gas produced from Committed

Lease(s) in excess of a Shipper's firm effective or future

Maximum Daily Quantity ("MDQ").


In the event Shipper has had quantities released pursuant

to Section 2.4(a) for more than 90 consecutive days or for

more than 90 days during any consecutive 180 day period or

if Shipper wishes to increase its MDQs to accommodate

production from new fields within the Committed Lease(s)

that were not included in Shipper's initial production

development plan for the Committed Lease(s) submitted to

Transporter under Section 1.1 above, at the time of

execution of this Agreement, Shipper may request in writing

from Transporter a prospective permanent release of the

daily quantities of gas in future Delivery Periods in

excess of the daily quantities of FT-2 service that

Transporter is able to make available to Shipper during

such future Delivery Periods as described below. Such

request shall include a schedule of quantities of gas that

Shipper reasonably expects to nominate and have available

for delivery from Committed Lease(s) in future Delivery

Periods based on production development data presented to

and verified by Transporter. Transporter shall act upon

Shipper's release request as soon as practicable, but in no

event later than six (6) months from the date of receipt of

Shipper's request. Such actions may include, without

limitation or obligation to take any action, the

installation of facilities or the solicitation of available

firm MDQs from other Shippers, to enable Transporter to

receive such additional quantities from Shipper. To that

end, Transporter shall review with Shipper the steps or

actions Transporter is taking, or proposes to take, as

soon as practicable, but in no event later than three (3)

months following Shipper's release request.