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. 128 Original Sheet No. 128 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

required by this Section, BLUEWATER shall auction any remaining

Storage Inventory and credit the proceeds of such sale to Customer,

net of withdrawal charges and fuel, if applicable. Customer shall

indemnify BLUEWATER and hold it harmless from all costs, damages and

liabilities arising out of the failure of Customer to remove such

Storage Inventory and the disposal of such Storage Inventory by sale

by BLUEWATER. BLUEWATER shall post such quantities on the Internet

Web Site as soon as reasonably practicable. BLUEWATER shall accept

bids only during the time period from 7:00 a.m. until ll:00 a.m. CCT

on the second Business Day following such posting. Prior to 4:00

p.m., CCT of the same Day, BLUEWATER shall notify the Customer

submitting the highest bid. When the Gas is purchased at auction,

Customer purchasing the Gas must provide identification of the

existing Storage Service Agreement with BLUEWATER under which

Customer shall store all such Gas purchased. Customer purchasing

the Gas agrees to pay the applicable storage rate on the Gas

purchased beginning on the date the bid was accepted at auction.

(c) BLUEWATER shall provide the original Releasing

Customer with Internet e-mail notification reasonably proximate in

time with any of the following formal notices given by BLUEWATER to

the Releasing Customer's Replacement Customer(s), of the following:

(1) Notice to the Replacement Customer regarding the

Replacement Customer's past due, deficiency, or default

status pursuant to BLUEWATER's tariff;

(2) Notice to the Replacement Customer regarding the

Replacement Customer's suspension of service notice;

(3) Notice to the Replacement Customer regarding the

Replacement Customer's contract termination notice due

to default or credit-related issues; and

(4) Notice to the Replacement Customer that the Replacement

Customer(s) is no longer creditworthy and has not

provided credit alternative(s) pursuant to BLUEWATER's

tariff.