GENERAL TERMS AND CONDITIONS
                       (Continued)


           (f) Action Alerts:  In the event that TRES PALACIOS
determines that due to (1) an ongoing or anticipated weather
event, (2) a known equipment problem, or (3) the anticipated
continuation of a current system operational problem, action is
necessary to avoid a situation in which the system integrity is
jeopardized or TRES PALACIOS' ability to render firm service is
threatened, TRES PALACIOS may issue an Action Alert as set out
herein to forestall the development of the situation.


(1)  Issuance of Alerts:  Action Alerts will be noticed in accord
with the procedures set forth in Section 5.5(e) and TRES PALACIOS
will endeavor to provide a minimum of four hours notice.


(2)  Action Alerts can be issued to effect any of the following:


(A)  restriction of Interruptible services;


(B)  restrictions of deliveries or receipts at specific Point(s)
of Receipt or Point(s) of Delivery covered by an operational
balancing agreement to the aggregate MDRQ or MDDQ under the
Storage Service Agreements for Firm Storage Services whose Primary
Point(s) of Delivery/Receipt, which are specified in the Storage
Service Agreement, are at the affected locations; and/or


(C)  forced balancing such that point operators will be required
to assure that nominations equal flows or that receipts and
deliveries fall within the tolerance level designated in the
Action Alert.


           (g) OFOs:  In the event that, in TRES PALACIOS'
judgment, immediate action is required to alleviate conditions
which threaten to impair reliable firm service, to maintain
operations at the pressures required to provide efficient and
reliable service, to have adequate Gas supplies in the system to
deliver on demand, to maintain services to all firm Customers and
for all firm services, and/or to maintain the system in balance
for the foregoing purposes, TRES PALACIOS may forgo the action
described in Section 5.5(f) and immediately issue an OFO.  In the
event that (l) Customer or point operator does not respond to an
Action Alert, (2) the actions taken thereunder are insufficient to
correct the system problem for which the Action Alert was issued,
or (3) there is insufficient time to carry out the procedures with
respect to Action Alerts, TRES PALACIOS may issue an OFO pursuant
to this Section 5.5(g) or take unilateral action, including the
curtailment of firm service, to maintain the operational integrity
of TRES PALACIOS' system.  For purposes of this Section, the
operational integrity of TRES PALACIOS' system shall encompass the
integrity of the physical system and the preservation of physical
assets and their performance, the overall operating performance of
the entire physical system as an entity, and the maintenance (on a
reliable and operationally sound basis) of total system
deliverability and the quality of Gas delivered.