Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 07/25/2008, Docket: RP08-421-000, Status: Effective

First Revised Sheet No. 77 First Revised Sheet No. 77

Superseding: Original Sheet No. 77

FTS RATE SCHEDULE (Continued)

expenses resulting from claims by any Replacement Customer that firm

capacity was not recalled in accordance with the recall rights specified

by the Releasing Customer in its offer.

4.14 Responsibilities of Replacement Customers. A Replacement Customer

awarded capacity shall execute a separate FTS Agreement with Petal for

the released capacity at the rate bid by the Replacement Customer and

accepted by the Releasing Customer up to the Maximum Rate and for the

term set forth in the release.

4.15 Marketing Fees. Petal may negotiate with a Releasing Customer and

receive a mutually agreeable fee for taking action to market Releasing

Customer's firm capacity so long as such actions constitute more than

merely posting the Releasing Customer's Offer. Petal and the Releasing

Customer will negotiate the level of activity to be undertaken by Petal

to market the capacity and the fee to be paid by the Releasing Customer

to Petal for such activity.

4.16 Agreement for Multiple Capacity Release Transactions. In lieu of

execution of individual Agreement(s), Petal and Replacement Customer may

execute a Master Service Agreement For Capacity Release Transactions to

cover multiple capacity release transactions.

5. RATES AND CHARGES

(a) The rates and charges paid by Customer for firm transportation service

under this rate schedule shall include the applicable transportation

rate components set forth in the FTS Rate Statement as described below:

(i) Reservation Charge. A monthly charge determined as the product

of the Customer's Maximum Daily Transportation Quantity and the

Reservation Rate(s) per Dth set forth in this FERC Gas Tariff.

(ii) Usage Charge. An amount determined as the product of the total

quantity of gas in Dths delivered by Petal for the account of

Customer during the billing month and the Usage Rate(s) per Dth

set forth in this FERC Gas Tariff.

(iii) Overrun Charge. A monthly charge resulting from any Overrun

Transportation Service pursuant to Section 3 of this Rate

Schedule.