Petal Gas Storage, L. L. C.

Original Volume No. 1

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

Second Revised Sheet No. 89 Second Revised Sheet No. 89

Superseding: Substitute First Revised Sheet No. 89

ITS RATE SCHEDULE (Continued)

7. AUTHORIZATION, RATES, TERMS AND CHANGES

(a) The ITS Agreement and the respective obligations of the parties

hereunder, are subject to all valid laws, orders, rules and regulations

of duly constituted authorities having jurisdiction, and are conditioned

upon the issuance, by the FERC, and any state or local governmental

agency having jurisdiction, of requisite authorization for Petal to

provide the transportation service contemplated hereby and to construct

and operate the facilities necessary to provide such transportation

service.

(b) Petal shall have the right to propose to the FERC or other governing

regulatory body such changes in its rates and terms of service as it

deems necessary, and this rate schedule shall be deemed to include any

changes which are made effective pursuant to order or regulation or

provisions of law, without prejudice to Customer's right to protest

the same; provided however, that any negotiated rates between Petal

and Customer(s) shall remain in effect during the term of the ITS

Agreement(s).

8. CURTAILMENT

If, due to any cause whatsoever, Petal's capability to receive, transport, or

deliver volumes is impaired so that Petal is unable to receive, transport, or

deliver the volumes provided for in its ITS Agreements with Customers, then

receipts, transportation capacity, and/or deliveries will be allocated according

to the priority of service as set forth in Section 4.1 of the General Terms and

Conditions of this FERC Gas Tariff.

9. BALANCING

9.1 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 Customers to schedule make-up volumes to reduce or

eliminate an imbalance.

9.2 All ITS 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 ITS customers receiving gas from any other

Point(s) of Receipt may acquire a balancing agreement under Rate

Schedules 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.