Petal Gas Storage, L. L. C.

Original Volume No. 1

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

Eighth Revised Sheet No. 127 Eighth Revised Sheet No. 127

Superseding: Seventh Revised Sheet No. 127

GENERAL TERMS AND CONDITIONS (Continued)

Payments Shall Be Made By Wire Transfer To:

Petal Gas Storage L.L.C.

Bank One - Texas

Dallas, TX

ABA #111000614

Account #693194839

Further credit: Petal Gas Storage, L.L.C.

Or Invoice Reference #

Statements:

Petal Gas Storage, L.L.C.

1100 Louisiana Street

Houston, TX 77002

Any notice initially delivered by fax shall be confirmed by regular mail

within one (1) week after transmission of the fax.

19. FUEL REIMBURSEMENT

19.1 Categories of Fuel Usage. The two general categories of fuel usage

are: (1) Direct Fuel Usage, consisting of (a) compression fuel,

including electric power associated with compression, (b) dehydration

fuel, and (c) line heating fuel; and (2) Indirect Fuel Usage, which

shall include lost and unaccounted for volumes.

19.2 Fuel Reimbursement Calculation. The amount charged monthly for Fuel

Reimbursement shall reflect the actual fuel used. The results of all

calculations shall be rounded to the nearest dekatherm or kilowatt hour.

For storage service, the total actual fuel charged to Customer shall be

pro rata based on Customer's injected volumes. For transportation

service requiring compression, the total actual fuel charged to Customer

shall be pro rata based on Customer's transported volumes. For

advancing service, the total actual fuel charged to Customer shall be

pro rata based on injected volumes. Natural gas included in the Fuel

Reimbursement Calculation shall be paid in kind to Petal. The charge

for electric power included in the Fuel Reimbursement Calculations shall

be set forth as a separate line item in the monthly invoice from Petal

to Customer, and shall include all charges for electric power associated

with compression. Petal shall use reasonable efforts to minimize fuel

usage.