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. 143 Original Sheet No. 143 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

12. TITLE AND RISK OF LOSS

12.1 Customer warrants for itself, its successors and

assigns, that it will have at the time of delivery of Gas for

injection, storage, parking, wheeling or loan repayment hereunder

either good title to or the right to have the Gas transported or

stored. Customer warrants for itself, its successors and assigns,

that the Gas it delivers hereunder shall be free and clear of all

liens, encumbrances, or claims whatsoever; and that it will

indemnify PPEC and save it harmless from all claims, suits,

actions, damages, costs and expenses arising directly or

indirectly from or with respect to the title and/or right to Gas

tendered to PPEC hereunder. Title to Gas transported or stored

under all Rate Schedules other than Rate Schedules FL and IL and

Gas loaned under Rate Schedule IB, shall remain at all times with

Customer. Title to gas transported or stored under Rate Schedules

FL and IL and to Gas loaned under Rate Schedule IB shall pass from

PPEC to Customer when loan gas is delivered for Customer's account

to a Point of Delivery and title shall pass from Customer to PPEC

when loaned gas is returned by Customer to a Point of Receipt.

12.2 As between Customer and PPEC, (x) Customer shall be

deemed to be in control and possession of the Gas prior to

delivery to PPEC for wheeling, parking, storage or injection at

the Point(s) of Receipt and after redelivery by PPEC to Customer

at the Point(s) of Delivery, and shall indemnify and hold PPEC

harmless from any damage or injury caused thereby, and (y) PPEC

shall be deemed to be in control and possession of the Gas after

the receipt of Gas at the Point(s) of Receipt and until PPEC's

redelivery of an equivalent quantity of Gas to Customer at the

Point(s) of Delivery, and shall indemnify and hold Customer

harmless from any damage or injury caused thereby, except for

damages and injuries caused by the sole negligence of Customer.

Notwithstanding anything to the contrary set forth in this Section

12.2, the risk of loss of any quantity of Gas wheeled through,

injected into, parked or stored in and withdrawn from the PPEC

storage facilities shall remain with Customer, and PPEC shall not

be liable to Customer for any loss of Gas, except as may be the

consequence of the intentional or negligent acts or omissions of

PPEC. Any losses of Gas, unless resulting from the intentional or

negligent acts or omissions of PPEC, shall be apportioned among

and shared proportionally by all Customers, based on each

Customer's Storage Inventory or Customer's Gas otherwise in PPEC's

control and possession; provided that losses of Gas stored under

Rate Schedules FSS and FP to which insurance coverage under

Section 16 of these General Terms and Conditions applies shall be

apportioned among such Customers on the basis of the percentage

which each Customer's Storage Inventory as of the Day immediately

preceding the Day on which a loss occurs bore to the total amount

of Gas in the Storage Inventories of all Customers subject to

insurance coverage on such Day.