Petal Gas Storage, L. L. C.

Original Volume No. 1

Effective Date: 01/09/2010, Docket: RP10-229-000, Status: Effective

Second Revised Sheet No. 82 Second Revised Sheet No. 82

Superseding: Substitute First Revised Sheet No. 82

FTS RATE SCHEDULE (Continued)

11. BALANCING

11.1 Petal shall not be obligated to deliver gas quantities that it has not

received from Customer. Customer shall be required to use its best efforts

to minimize imbalances between gas quantities delivered to Petal at the

Point(s) of Receipt for transportation, and gas quantities received from

Petal at the transportation Point(s) of Delivery. When an imbalance exists

between Petal and Customer, Petal shall have the right on any day to adjust

receipts from Customer or deliveries to Customer to the extent necessary in

order to protect the operational integrity of the system. Furthermore,

Petal shall have the right at the end of any month to eliminate any

imbalance, and to permit Customer to schedule make-up volumes to reduce or

eliminate an imbalance.

11.2 All FTS Customers receiving gas from their Petal FSS, FSS-1 or ISS service

at the Petal Paper Pooling Point shall have their imbalances eliminated

through adjustment to the balance in their FSS, FSS-1 or ISS storage

account. All FTS customers receiving gas from any other Point(s) of

Receipt may acquire a balancing agreement under Rate Schedule ISS and AVS

with Petal, or a third-party balancing provider, which agreement Petal may

rely upon to adjust the balances as necessary to eliminate Customer's

imbalances. Customer must notify Petal of its election to utilize a third

party to provide balancing services, and Petal shall approve the proposed

third party service provider upon its demonstration that it has the ability

to provide balancing on the same operational basis as Petal.

12. GENERAL TERMS AND CONDITIONS

Applicable provisions of the General Terms and Conditions set forth in this

FERC Gas Tariff, as such provisions may be amended from time to time, are

hereby incorporated by reference and made a part of the FTS Rate Schedule,

where applicable, and shall supplement the terms and conditions governing

service rendered hereunder, as though stated herein; provided, however, that

in the event of any inconsistency, the General Terms and Conditions of this

FERC Gas Tariff shall control.