High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/2004, Docket: RP04-288-000, Status: Effective

First Revised Sheet No. 227 First Revised Sheet No. 227 : Effective

Superseding: Substitute Original Sheet No. 227






5.3 Data Requirements. Transporter hereby agrees to provide Administrator with each

producer's volume (Dth and/or Mcf), heat content (Btu/cf) and NGL component data

(mole percent and/or GPM) for each Point of Receipt used by Shipper, by the 15th

day of the succeeding month for the previous month; and any other information

Administrator may reasonably require in the performance of this Agreement from

time to time including, but not limited to, downstream pipeline routing.


Administrator agrees to provide settlement statements to Shipper or its agent

by the end of the succeeding month for the previous month, or within 15 days of

receipt of the above volume, heat content and NGL component data, whichever is

later. If Administrator has not received such data in a timely manner,

Administrator, at its sole discretion, may make reasonable approximations in

lieu of late or missing data. If Administrator utilizes estimated data then

Administrator shall so state on the settlement statement.


Calculated settlements for any month shall be adjusted such that total credits

are equal to total debits. Such adjustment shall be pro rata based on the

gallons of ethane and heavier NGL components contained in the gas from each

Point of Receipt.


Shipper and Transporter agree to indemnify and hold Administrator harmless

from and against any and all claims that arise from Administrator's exclusive

reliance on such data provided by Transporter in the performance of this

Agreement. Administrator and Shipper shall have the right to audit any

information supplied to Administrator by Transporter or the operator of the

Points of Receipt in connection herewith including, but not limited to,

inspecting the facilities, equipment and procedures used in supplying such

information to Administrator. In the case of gas sampler failure, or

associated like equipment, Administrator may use, at its reasonable

discretion, a spot sample, the previous month's data, or some other reasonable

estimate. All NGL component data in mole percent shall be converted to GPM

using the respective factors as set forth under the heading "Volume, Ft3 ideal

gas/gal liquid" in the most recent GPA Standard 2145, currently Standard 2145-

03, and adjusted to a 14.73 psia pressure base.


5.4 Administrative Fees. Total monthly payments due Administrator to administer

the NGL Bank for the period beginning June 1, 2004, and ending March 31, 2005,

as further detailed on Exhibit "B," attached hereto and incorporated herein by

reference, shall be $2,500.00 per month, plus an additional $100.00 per month

multiplied by the total number of active Points of Receipt on HIOS. The total

of such monthly payments shall be charged pro rata to each shipper based upon

each shipper's total monthly quantity of gas, in Dth, transported on HIOS as

compared with the total monthly quantity of gas, in Dth, transported by all

shippers on HIOS for such month.


Any additions or modifications to the model used to calculate the NGL Bank

settlements as provided in Sections 5.1 and 5.2, other than those relating to

new shipper setup, shall be charged by Administrator at $50.00 per hour. Any

such fees shall be charged to shippers based on the above allocation.