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. 143 Original Sheet No. 143 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

14.2 Application of Payments for Released Capacity. Payments

to BLUEWATER by a Replacement Customer for released capacity shall

be applied as follows: (i) BLUEWATER shall retain amounts equal to

the Replacement Customer's usage charges; (ii) BLUEWATER will credit

the balance to reservation charges due from the Replacement

Customer; and (iii) BLUEWATER shall remit the remaining balance, if

any, or shall charge any balance due, to the Replacement Customer,

in accordance with Section 4.10 of the General Terms and Conditions

of this FERC Gas Tariff. If any balance due from the Replacement

Customer remains unpaid, the outstanding balance will then be billed

to the Releasing Customer, provided that the Releasing Customer is

only liable to the extent of the reservation charges specified in

the applicable Storage Service Agreement and corresponding Rate

Schedule.

14.3 Payment. Customer shall pay BLUEWATER by wire transfer

the full amount reflected on the invoice within fifteen (15) days of

the date of the invoice. If the fifteenth (15th) day shall fall

upon a weekend or legal holiday, then such payment shall be made on

the last regular Business Day prior to such fifteenth (15th) day.

Party making payment should submit supporting documentation; party

receiving payment should apply payment per supporting documentation

provided by the paying party; and if payment differs from invoiced

amount, remittance detail should be provided with the payment except

when payment is made by electronic funds transfer (EFT), in which

case, the remittance detail is due within two Business Days of the

payment due date.

14.4 Billing Error. If an error is discovered in any

billing, such error shall be adjusted within thirty (30) days of the

determination thereof. If a dispute arises as to the amount payable

in any invoice rendered hereunder, Customer shall nevertheless pay

when due the amount not in dispute under such invoice. Such payment

shall not be deemed to be a waiver of the right by Customer to

recoup any overpayment, nor shall acceptance of any payment be

deemed to be a waiver of the right by Customer to recoup any

overpayment, nor shall acceptance of any payment be deemed to be a

waiver by BLUEWATER of any underpayment. In the event Customer

fails to forward the entire undisputed amount due to BLUEWATER when

same is due, interest on the unpaid portion shall accrue at the same

rate of interest and in the same manner as prescribed for pipeline

refunds as set forth in Section 154.501(d) of the Commission's

regulations under the Natural Gas Act from the date such payment is

due until the same is paid. If Customer's failure to pay the

undisputed portion of any invoice rendered hereunder continues

beyond thirty (30) days after the due date of such invoice, then

BLUEWATER, in addition to all other legal remedies available to it,

shall have the right and option to suspend further deliveries of Gas

until such default shall have been cured. If Customer's failure to

pay the undisputed portion of any invoice rendered hereunder

continues beyond sixty (60) days after the due date of such invoice,

then BLUEWATER, in addition to all other legal remedies available to

it, shall have the right and option to terminate service hereunder.