Pine Prairie Energy Center, LLC

Original Volume No. 1

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Effective Date: 09/01/2007, Docket: RP07-563-000, Status: Effective

Original Sheet No. 122 Original Sheet No. 122 : Effective

GENERAL TERMS AND CONDITIONS

Continued)

to the Replacement Customer for the released capacity rights, or

as otherwise agreed. If the Replacement Customer fails to pay

when due all or part of the amounts credited to the Releasing

Customer, PPEC shall pursue payment from the Replacement Customer

by notifying such Customer by registered letter, return receipt

requested, that it has five (5) days from receipt of such letter

to pay the amount due including any applicable interest. If the

Replacement Customer fails to pay such amount by the end of the

fifth day, PPEC shall reverse the credit and bill the Releasing

Customer for such past due amounts, plus applicable interest.

4.11 Rights and Obligations of the Parties.

(a) The Storage Service Agreement between the Releasing

Customer and PPEC shall remain in full force and effect with the

Releasing Customer to receive a credit to its invoice as described

in Section 4.10 above. If the Replacement Customer fails to pay

all or part of the amounts credited to the Releasing Customer

after the five Day notification period specified in Section 4.10,

PPEC shall reverse the credit and bill the Releasing Customer for

such past due amounts, plus applicable interest. The Storage

Service Agreement executed by the Replacement Customer shall be

fully effective and enforceable by and against the Replacement

Customer. The Replacement Customer may also release capacity

pursuant to this Section, and in such event and for such purposes,

shall be considered the Releasing Customer.

(b) PPEC shall accept nominations, schedule service,

afford priority of service and interrupt service based on

instructions and communications from the Releasing Customer and

the Replacement Customer which are consistent with one another and

with the terms and conditions of PPEC's FERC Gas Tariff and their

respective Storage Service Agreements. In the event that

instructions or nominations from the Releasing Customer and

Replacement Customer are, in PPEC's opinion, inconsistent or

conflicting, PPEC shall comply with the instructions of the

Releasing Customer; provided, however, that such instructions must

not be inconsistent with PPEC's FERC Gas Tariff or the terms of

either the Releasing Customer's or Replacement Customer's Storage

Service Agreement, in PPEC's opinion. The Releasing Customer will

indemnify PPEC against any claim or suit by the Replacement

Customer, its successors or assigns arising from any action taken

by PPEC in reliance upon the Releasing Customer's nominations and

instructions and will hold PPEC harmless for any action taken by

PPEC in reliance upon the nominations and scheduling instructions

of the Replacement Customer; provided, however, that the Releasing

Customer shall not be liable for the Replacement Customer's

failure to pay the usage charges (plus all applicable surcharges,

Fuel Reimbursement, taxes, penalties, etc.) billed to the

Replacement Customer and attributable to its usage of the released

capacity. The Replacement Customer will indemnify PPEC against

any claim or suit by the Releasing Customer, its successors or

assigns, arising from any action taken by PPEC in reliance upon

the nominations and scheduling instructions of the Replacement

Customer and will hold PPEC harmless for any actions taken by PPEC

in reliance upon the instructions of the Releasing Customer.