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

Third Revised Sheet No. 128 Third Revised Sheet No. 128

Superseding: 2nd Sub. Second Revised Sheet No. 128

GENERAL TERMS AND CONDITIONS (Continued)

20. TITLE TRANSFERS OF GAS IN STORAGE

20.1 A Customer that has executed a storage service agreement under Rate

Schedules FSS, FSS-1, ISS, or AVS may sell Working Storage Gas to any

other Customer that has executed a storage service agreement under Rate

Schedules FSS, FSS-1, ISS, or AVS if:

(a) Such transfer will not affect Petal's ability to meet its

obligations to existing Customers or the operations of its

storage facilities, including any effect resulting from

differences between the withdrawal and injection entitlements

and service profiles of the Customer transferor and transferee;

or

(b) Customer selling Working Storage Gas provides Petal with

verification of the transfer in writing; or

(c) The transfer does not cause either Customer's storage balance

to go below zero or to exceed its Maximum Storage Quantity or

Maximum Advancing Quantity, as specified in the Customer's

Service Agreement.

20.2 Petal may, in its reasonable discretion, reject the transfer of gas if

it (1) diminishes Petal's ability to meet all of Petal's other service

obligations, (2) increases Petal's firm service obligations, (3) is

requested to have a retroactive effective date, or (4) causes Customer

to exceed its Maximum Daily Injection Quantity or Maximum Daily

Withdrawal Quantity.

20.3 Petal will recognize the transfer for purposes of computing available

Working Storage Gas and applicable Injection and Withdrawal Quantities

on a prospective basis within 24 hours after receiving the written

verification.

20.4 Notwithstanding anything in this Section 20 to the contrary, Petal may

not disallow an in-field title transfer of gas tied to a release of the

associated storage capacity.