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. 134 Original Sheet No. 134 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Any penalty revenue collected by PPEC pursuant to this Section

5.5(i) shall be credited to those firm and Interruptible Customers

that did not incur Action Alert or OFO penalties pursuant to this

Section 5.5(i) in the Month for which Action Alert or OFO penalty

revenues were received ("Non-Offending Customers"), based on the

ratio of the total charges paid during that Month by the Non-

Offending Customer to the sum of the total charges paid during

that Month by all Non-Offending Customers. Such credits shall be

calculated for each Month of the twelve (12) Month period ending

July 31 of each year, and will be included on the Non-Offending

Customer's invoice for the Month following the date of the final

Commission order approving PPEC's penalty disbursement report;

provided, however, that PPEC will calculate and include such

credits on Non-Offending Customer's invoices for a period shorter

than twelve Months in the event and to the extent that the total

accumulated amount of Action Alert or OFO penalty revenue

collected pursuant to this Section 5.5(i) by PPEC as of the end of

any Month exceeds $1,000,000. PPEC will file with the Commission

a penalty disbursement report within sixty days of July 31 or

sixty days after the end of the Month for which revenue collected

exceeds $1,000,000. Any penalty revenue credited to Non-Offending

Customers pursuant to this Section shall include interest

calculated in accordance with Section 154.501(d) of the

Commission's regulations.

(j) Liability of PPEC: PPEC shall not be liable for

any costs incurred by any Customer or point operator in complying

with an Action Alert or OFO. PPEC shall not be responsible for

any damages that result from any interruption in service that is a

result of a Customer's or point operator's failure to comply

promptly and fully with an Action Alert or OFO, and the non-

complying Customer or point operator shall indemnify PPEC against

any claims of responsibility. However, PPEC shall use reasonable

efforts to minimize any such costs or damages.

(k) Unilateral Action: In the event that (l)

Customer(s) or point operator(s) does (do) not respond to an OFO,

or (2) the actions taken thereunder are insufficient to correct

the system problem for which the OFO was issued, or (3) there is

insufficient time to carry out the procedures with respect to

OFOs, PPEC may take unilateral action, including the curtailment

of firm service, to maintain the operational integrity of PPEC's

system. For purposes of this Section, the operational integrity

of PPEC's system shall encompass the integrity of the physical

system and the preservation of physical assets and their

performance, the overall operating performance, the overall

operating performance of the entire physical system, as an entity,

and the maintenance (on a reliable and operationally sound basis)

of total system deliverability and the quality of Gas delivered.