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. 139 Original Sheet No. 139 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

all information necessary to permit scheduling pursuant to such

requirements. In addition, BLUEWATER will not be required to begin

wheeling, injections or withdrawals for a Customer's account unless

and until the data required for nominations, provided for in Section

8, have been confirmed by the applicable Transporter to BLUEWATER's

Gas dispatcher.

9.4 Transportation Imbalances. In the event that BLUEWATER

or Customer delivers or causes to be delivered to Transporter at the

Point(s) of Receipt or Delivery a quantity of Gas not equal to the

quantity of Gas received or taken by Customer or BLUEWATER, a

"Transportation Imbalance" may occur. Provided that BLUEWATER has

taken or delivered the quantity of Gas nominated by Customer and

scheduled by Transporter, Customer shall be liable for all

imbalances under its transportation agreement with Transporter.

Upon notification by Customer or Transporter that a Transportation

Imbalance exists because BLUEWATER failed to deliver or receive the

quantity of Gas nominated by Customer and scheduled by Transporter,

BLUEWATER will endeavor to correct the Transportation Imbalance

subject to any restrictions imposed by Transporter but BLUEWATER

shall be solely responsible and liable for any charges, penalties,

costs and expenses incurred or payable by either party as a result

of the Transportation Imbalance. Customer agrees to use its best

efforts to prevent or diminish any occurrences of imbalances.

9.5 Measurement. Customer and BLUEWATER agree that the

quantity of Gas delivered hereunder shall be measured by BLUEWATER

in accordance with the Transporter's pipeline tariff applicable to

each Point of Delivery/Receipt, and, as such, may be allowed to

fluctuate within the applicable measurement or flow tolerances on a

daily and Monthly basis.

9.6 Costs and Penalties. Customer shall hold BLUEWATER

harmless for all costs and penalties which may be assessed by

Transporter(s) under Customer's transportation agreement(s) with

Transporter(s), unless the costs and penalties are due to the

negligence of BLUEWATER. Customer and BLUEWATER shall cooperate

with each other and with the Transporter(s) to verify delivery and

receipt of the volumes of Gas delivered hereunder on a timely basis.

9.7 Downstream and Upstream Transportation. Customer shall

be responsible for transportation from the Point(s) of Delivery and

payment of all transportation charges relating thereto. Customer

shall be responsible for transportation to the Point(s) of Receipt

and payment of all transportation charges relating thereto.

10. QUALITY

10.1 Specifications. The Gas delivered by either party to

the other hereunder shall meet the quality specifications of the

Transporter which receives or delivers such Gas at the Point of

Receipt or Delivery, as applicable, and, unless such Transporter's

quality specifications are more stringent, shall be of such quality

that it shall meet at least the following specifications: