Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/01/2006, Docket: CP06-351-001, Status: Effective

Original Sheet No. 121 Original Sheet No. 121 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4.8 Qualification of Prospective Replacement Customer. A

prospective Replacement Customer must be on BLUEWATER's approved

bidders list before bids may be posted on the Internet Web Site,

must satisfy all requirements of the applicable Rate Schedule and

the General Terms and Conditions of this FERC Gas Tariff and must

have executed a Capacity Release Umbrella Agreement. To be on the

approved bidders list, the prospective Replacement Customer must

satisfy BLUEWATER's credit requirements as outlined in Section 3 of

the General Terms and Conditions, and, if applicable, provide the

information required by Section 3 of the General Terms and

Conditions. BLUEWATER will apply its creditworthiness criteria to

assess the submission. Such credit appraisal shall be reevaluated

and updated every three (3) months. The prospective Replacement

Customer shall remain on the approved bidders list until such

prospective Replacement Customer (i) notifies BLUEWATER to the

contrary, (ii) no longer meets the credit qualifications established

in Section 3 of the General Terms and Conditions, or (iii) is

suspended from the approved bidders list in the event, and for such

time as, such Replacement or Prearranged Replacement Customer fails

to pay part or all of the amount of any bill for service in

accordance with Section 14 of the General Terms and Conditions.

BLUEWATER will waive the creditworthiness requirement on a non-

discriminatory basis for Replacement Customers and permit them to

submit bids, if the Releasing Customer provides BLUEWATER with a

guarantee or other form of credit assurance in form and substance

satisfactory to BLUEWATER of all financial obligations of the

Replacement Customer with respect to the capacity being released by

Releasing Customer prior to the commencement of service to the

Replacement Customer. BLUEWATER shall not award capacity release

offers to a prospective Replacement Customer until and unless the

Customer meets BLUEWATER's creditworthiness requirements applicable

to all services that it receives from BLUEWATER, including the

service represented by the capacity release.

4.9 Nominations. Following its selection, and prior to the

flow of Gas, the Replacement Customer shall be permitted to submit

nominations pursuant to the terms and conditions of the applicable

Rate Schedule and the General Terms and Conditions of this FERC Gas

Tariff.

4.10 Billing. The Replacement Customer shall be billed and

make payments to BLUEWATER in accordance with the applicable Rate

Schedule, other provisions of this FERC Gas Tariff and of its

Storage Service Agreement incorporating its bid terms. In

accordance with the terms of the release, the Replacement Customer

shall pay or be liable for the usage charges (plus all applicable

surcharges, Fuel Reimbursement, taxes, penalties, etc.) applicable

under the relevant Rate Schedule attributable to its usage of the

released capacity. BLUEWATER shall continue to bill the Releasing

Customer all applicable charges under its existing Storage Service

Agreement, excluding usage charges (plus all applicable surcharges,

Fuel Reimbursement, taxes, penalties, etc.) billed to the

Replacement Customer and attributable to Replacement Customer's

usage of the released capacity. Invoices sent to the Releasing

Customer shall reflect a credit equal to any reservation charges

(plus all surcharges applicable thereto) being billed