Petal Gas Storage, L. L. C.

Original Volume No. 1

Effective Date: 05/01/2002, Docket: RP02-188-000, Status: Effective

Original Sheet No. 76 Original Sheet No. 76 : Effective

FTS RATE SCHEDULE (Continued)

creditworthiness requirements of this FERC Gas Tariff.

4.12 Prequalification of Creditworthiness. All parties desiring to bid on

firm capacity offered by a Releasing Customer and all Prearranged

Replacement Customers must meet Petal's creditworthiness requirements

and be prequalified before bidding on any offer to release capacity.

All parties desiring to bid on firm capacity offered by a Releasing

Customer shall submit to Petal at least five (5) business days prior to

the date on which bids for the firm capacity are to be received, credit

information sufficient for Petal to determine the party's

creditworthiness, unless Petal agrees it has already determined the

bidder to be creditworthy or to have suitable credit on file with Petal.

A bidder's creditworthiness shall be assessed in accordance with the

terms of Section 3 of the General Terms and Conditions of this Tariff.

If a bidder does not qualify under Petal's creditworthiness standards,

the bidder shall either provide a letter of credit in a satisfactory

form and from a financial institution acceptable to Petal, a guaranty

from a party satisfying Petal's creditworthiness standards, or a cash

deposit equal to the lesser of (i) the maximum charges (including

reservation charge, usage charge and surcharges) payable for the term of

the release, or (ii) the maximum charges (including reservation charge,

usage charge and surcharges) payable for the first three full months of

the release. A party that does not qualify as a creditworthy bidder is

ineligible to bid on capacity.

In the case of releases not subject to bidding, the Designated

Replacement Customer must prequalify at least five (5) business days

prior to Petal's nomination deadline for transportation using the

released capacity. In all other respects, the terms and conditions

applicable to bidders also apply to the Designated Replacement

Customers who have not otherwise complied with the above requirements.

4.13 Responsibilities of Releasing Customers. The Releasing Customer shall

remain fully liable under its existing FTS Agreement with Petal for the

payment of all reservation charges each month for the full contract

quantity, whether or not such quantity has been released. A Customer

may release all or part of its firm capacity on a permanent or temporary

basis. The Releasing Customer will remain obligated to pay the

difference, if any, between the accepted bid and the applicable rate for

the remainder of the existing agreement term. A Releasing Customer

shall be responsible for notifying, or causing to be notified, its

Replacement Customer prior to exercising recall rights. Petal has the

right to rely on a Releasing Customer's notice and a Releasing Customer

shall defend and indemnify Petal against any claims, losses, liabilities