Blue Lake Gas Storage Company

First Revised Volume No. 1

Effective Date: 11/01/2007, Docket: RP08- 17-000, Status: Effective

Third Revised Sheet No. 154 Third Revised Sheet No. 154 : Effective

Superseding: Second Revised Sheet No. 154

GENERAL TERMS AND CONDITIONS

(Continued)

13. BILLING ADJUSTMENT FOR LIQUIDS REVENUES

13.1 Monthly Billing Adjustment. A billing adjustment shall be made

monthly to Customer's bills rendered pursuant to Section 8 of

these General Terms and Conditions, to reflect the credit, if

any, for Liquids Revenues collected by Seller. A pro rata

allocation of such revenue will be credited to each Customer,

and will appear on the invoice for the next Month's business

following actual receipt by Seller of such revenues.

13.2 Allocation Base. Customers will receive a pro rata allocation

of a particular Month's Liquids Revenues, based upon the

following allocation base:

(a) Rate Schedule FS Customers: The Maximum Storage Quantity

such Customer had a right to store in the Month the

Liquids Revenues were received; and

(b) Rate Schedule IS Customers: The Average Monthly Storage

Volume the Customer stored in the Month the Liquids

Revenues were received.

13.3 Monthly Credit. Each Customer will receive a Monthly credit

based upon the formula

X (Y / Z), where:

X = Total Liquids Revenues collected by Seller in a Month

Y = The Customer's allocation base derived in accordance with

Section 13.2, above; and

Z = The Sum of all of Customers' allocation bases derived in

accordance with Section 13.2, above.

14. INTERNET WEBSITE

Seller has established an Internet Website ("Internet Site") through

the use of a third party provider Latitude Technologies, Inc. that

will be available to any existing or potential Customer on Seller's

system. The Internet Site shall be interactive and contain relevant

informational posting requirements. Such site is located at

"www.latec.com/bluelake". Seller shall notify Customer of any change

to its Internet Site procedures or Web address.