Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 04/01/2008, Docket: RP08-249-000, Status: Effective

First Revised Sheet No. 154 First Revised Sheet No. 154 : Pending

Superseding: Original Sheet No. 154

GENERAL TERMS AND CONDITIONS

(Continued)

28.3 Customer shall not be obligated to pay BLUEWATER

reservation charges for any suspended services during any period

of suspension pursuant to Section 28.2.

29. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW

FACILITIES

29.1 Except as provided in Section 29.2 herein, Customer

shall reimburse BLUEWATER (a) for the costs of any facilities

installed by BLUEWATER with Customer's consent to receive,

measure, store or deliver Gas for Customer's account and (b) for

any and all filings and approval fees required in connection with

Customer's Storage Service Agreement that BLUEWATER is obligated

to pay to the Commission or any other governmental authority

having jurisdiction. Any reimbursement due BLUEWATER by Customer

pursuant to this Section 29.1 shall be due and payable to

BLUEWATER within ten (10) days of receipt by Customer of

BLUEWATER's invoice(s) for same; provided, however, that subject

to BLUEWATER's consent, such reimbursement, plus carrying charges

thereon, may be amortized over a mutually agreeable period not to

extend beyond the primary contract term of the Storage Service

Agreement between BLUEWATER and Customer. Carrying charges shall

be computed utilizing interest factors acceptable to both

BLUEWATER and Customer.

29.2 BLUEWATER may waive from time to time, at its discretion,

all or a portion of the facility cost reimbursement requirement

set forth in Section 29.1 for Rate Schedules FSS, NNSS, FP and FL

if Customer provides BLUEWATER adequate assurances to make

construction of the facilities economical to BLUEWATER. All

requests for waiver shall be handled by BLUEWATER in a manner

which is not unduly discriminatory. For purposes of determining

whether a project is economical, BLUEWATER will evaluate projects

on the basis of various economic criteria, which will include the

estimated cost of the facilities, operating and maintenance as

well as administrative and general expenses attributable to the

facilities, the revenues BLUEWATER estimates will be generated as

a result of such construction, and the availability of capital

funds on terms and conditions acceptable to BLUEWATER. In

estimating the revenues to be generated, BLUEWATER will evaluate

the existence of capacity limitations downstream of the

facilities, the marketability of the capacity, the Interruptible

versus the firm nature of the service, and other similar factors

which impact whether the available capacity will actually be

utilized.