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. 206 Original Sheet No. 206 : Effective







After such review, but within the six (6) month period,

Transporter shall notify Shipper of the additional MDQs, if

any, that may be available to Shipper under its FT-2

Agreements in such future Delivery Periods, and/or the

quantities of gas eligible for permanent release. If

Transporter (i) is unable, with existing facilities, to

provide to Shipper the increased MDQs requested or (ii) is

unable or unwilling to expand its system, by the later of

(a) 24 months after the date Transporter receives Shipper's

request for increased MDQs, or (b) Shipper's anticipated

start-up of deliveries from the new field(s), or (c) an

alternative, later date acceptable to Shipper, then

Transporter shall provide Shipper a written, permanent

release of quantities from this Agreement as provided below.

Such quantities shall be equal to amount(s) of up to (a) the

daily quantities of gas that Shipper reasonably expects to

nominate and have available for delivery from Committed

Lease(s) in future Delivery Periods, minus (b) the

quantities of FT-2 service made available to Shipper for

such future Delivery Periods including the additional MDQs,

if any, and MDQs under Shipper's existing FT-2 Agreements on

the date of such notice (the "Permanent Release

Quantities"). Within fifteen (15) days after such

notice, Shipper must notify Transporter in writing if

Shipper elects to implement the permanent release of the

obligations under Section 2.1 with respect to the Permanent

Release Quantities; provided, however, that the Permanent

Release Quantities shall be deemed to be based on the last

quantities produced so that any release under this Section

2.5 is applicable only to the daily production quantity in

excess of the level of additional FT-2 MDQs that were made

available to Shipper during such review.


Upon such notification to Transporter of Shipper's election

to release, Transporter will release the Permanent Release

Quantities from the obligations under Section 2.1. An

illustrative example of the permanent release provisions of

this Section 2.5 is provided at Exhibit B to this Agreement.

Shipper may deliver the Permanent Release Quantities from

any field(s) under the Committed Lease(s) of Shipper's