Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 12/27/2002, Docket: RP03-141-000, Status: Effective

First Revised Sheet No. 137 First Revised Sheet No. 137 : Effective

Superseding: Original Sheet No. 137

GENERAL TERMS AND CONDITIONS (Continued)

24.3 Monthly Credit. Each Customer will receive a Monthly credit based upon

the formula

X (Y / Z), where:

X = Total Net Penalties collected by Petal in a Month

Y = The Customer's allocation base derived in accordance with

Section 23.2 above; and

Z = The Sum of all of Customers' allocation bases derived in

accordance with Section 23.2 above.

25. SEGMENTATION

25.1 Generally. Pursuant to the terms of this section, Customers may segment

firm transportation capacity rights for release or their own use.

Customers segmenting must specify (i) the specific segment as between

valid Petal receipt and/or delivery points within the Shipper's Path, and

(ii) all applicable changes to Customer's Maximum Daily Transportation

Quantity at the Primary Receipt and/or Delivery Points and to Customers'

Maximum Daily Transportation Quantity for the beginning point to the

ending point of the segment and any other changes to Customer's Maximum

Daily Transportation Quantity. Segmentation will be permitted where the

transaction will not impede or adversely affect firm service to any other

Customer. If nominations by a releasing customer and a replacement

customer, or by a Customer segmenting its own capacity, overlap anywhere

on Petal's system, the total nominations for the overlapping portion of

the system are limited to the original Customer's firm entitlement level

for that portion of the system. Notwithstanding the foregoing, Customers

may conduct a simultaneous segmented transaction consisting of a

forwardhaul up to Customer's Maximum Daily Transportation Quantity and a

backhaul up to Customer's Maximum Daily Transportation Quantity at the

same Receipt Point or at the same Delivery Point. In the event of such

overlapping nominations, unless otherwise specified by releasing

Customer, capacity will be allocated on a pro rata basis based on

nominations.

25.2 Segmentation for Customer's Own Use. For Customers segmenting capacity

for their own use in the nomination process, the tariff provisions

contained in the applicable rate schedule and General Terms and

Conditions which limit receipt and delivery quantities nominated to the

Customer's Maximum Daily Transportation Quantity shall not apply.

25.3 Segmentation for Purposes of Release. For Customers segmenting

capacity for purposes of release, the Releasing Customer's capacity

will be reduced by an amount equal to the quantity released for the

segment released. A Releasing Shipper is prohibited from re-releasing

the released segment unless and until the Releasing Shipper recalls the

released segment or the released segment reverts to the Releasing

Shipper at the end of the release term. Replacement Shippers who

desire to re-release the released segment may only release capacity

within their acquired capacity segment. The sum of capacity released

in any segment cannot exceed the Releasing Shipper's original capacity

entitlements. Except for simultaneous forwardhauls and backhauls to

the same Receipt or Delivery Point as provided in Section 25.1 above,

in the event that the combined amount of volumes nominated by the

Releasing Shipper and the Replacement Shipper exceed the Releasing

Shipper's original capacity entitlements, Petal will accept nominations

for volumes in excess of the original capacity entitlements in the

overlapped portion of its system only where the Replacement Shipper or

Releasing Shipper, as applicable, has nominated those excess volumes

under a separate service such as authorized overrun or under Rate

Schedule ITS.