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. 145 Original Sheet No. 145 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

14.2 Application of Payments for Released Capacity.

Payments to PPEC by a Replacement Customer for released capacity

shall be applied as follows: (i) PPEC shall retain amounts equal

to the Replacement Customer's usage charges; (ii) PPEC will credit

the balance to reservation charges due from the Replacement

Customer; and (iii) PPEC shall remit the remaining balance, if

any, or shall charge any balance due, to the Replacement Customer,

in accordance with Section 4.10 of the General Terms and

Conditions of this FERC Gas Tariff. If any balance due from the

Replacement Customer remains unpaid, the outstanding balance will

then be billed to the Releasing Customer, provided that the

Releasing Customer is only liable to the extent of the reservation

charges specified in the applicable Storage Service Agreement and

corresponding Rate Schedule.

14.3 Payment. Customer shall pay PPEC by wire transfer

the full amount reflected on the invoice within fifteen (15) days

of the date of the invoice. If the fifteenth (15th) day shall

fall upon a weekend or legal holiday, then such payment shall be

made on the last regular Business Day prior to such fifteenth

(15th) day. Party making payment should submit supporting

documentation; party receiving payment should apply payment per

supporting documentation provided by the paying party; and if

payment differs from invoiced amount, remittance detail should be

provided with the payment except when payment is made by

electronic funds transfer (EFT), in which case, the remittance

detail is due within two Business Days of the payment due date.

14.4 Billing Error. If an error is discovered in any

billing, such error shall be adjusted within thirty (30) days of

the determination thereof. If a dispute arises as to the amount

payable in any invoice rendered hereunder, Customer shall

nevertheless pay when due the amount not in dispute under such

invoice. Such payment shall not be deemed to be a waiver of the

right by Customer to recoup any overpayment, nor shall acceptance

of any payment be deemed to be a waiver of the right by Customer

to recoup any overpayment, nor shall acceptance of any payment be

deemed to be a waiver by PPEC of any underpayment. In the event

Customer fails to forward the entire undisputed amount due to PPEC

when same is due, interest on the unpaid portion shall accrue at

the same rate of interest and in the same manner as prescribed for

pipeline refunds as set forth in Section 154.501(d) of the

Commission's regulations under the Natural Gas Act from the date

such payment is due until the same is paid. If Customer's failure

to pay the undisputed portion of any invoice rendered hereunder

continues beyond thirty (30) days after the due date of such

invoice, then PPEC, in addition to all other legal remedies

available to it, shall have the right and option to suspend

further deliveries of Gas until such default shall have been

cured. If Customer's failure to pay the undisputed portion of any

invoice rendered hereunder continues beyond sixty (60) days after

the due date of such invoice, then PPEC, in addition to all other

legal remedies available to it, shall have the right and option to

terminate service hereunder.