Pine Prairie Energy Center, LLC

Original Volume No. 1

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

Original Sheet No. 128 Original Sheet No. 128 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

required by this Section, PPEC shall auction any remaining Storage

Inventory and credit the proceeds of such sale to Customer, net of

withdrawal charges and fuel, if applicable. Customer shall

indemnify PPEC and hold it harmless from all costs, damages and

liabilities arising out of the failure of Customer to remove such

Storage Inventory and the disposal of such Storage Inventory by

sale by PPEC. PPEC shall post such quantities on the Internet Web

Site as soon as reasonably practicable. PPEC shall accept bids

only during the time period from 7:00 a.m. until ll:00 a.m. CCT on

the second Business Day following such posting. Prior to 4:00

p.m., CCT of the same Day, PPEC shall notify the Customer

submitting the highest bid. When the Gas is purchased at auction,

Customer purchasing the Gas must provide identification of the

existing Storage Service Agreement with PPEC under which Customer

shall store all such Gas purchased. Customer purchasing the Gas

agrees to pay the applicable storage rate on the Gas purchased

beginning on the date the bid was accepted at auction.

with Internet e-mail notification reasonably proximate in time

with any of the following formal notices given by PPEC to the

Releasing Customer's Replacement Customer(s), of the following:

(1) Notice to the Replacement Customer regarding the

Replacement Customer's past due, deficiency, or

default status pursuant to PPEC's tariff;

(2) Notice to the Replacement Customer regarding the

Replacement Customer's suspension of service

notice;

(3) Notice to the Replacement Customer regarding the

Replacement Customer's contract termination notice

due to default or credit-related issues; and

(4) Notice to the Replacement Customer that the

Replacement Customer(s) is no longer

creditworthy and has not provided credit

alternative(s) pursuant to PPEC's tariff.