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. 147 Original Sheet No. 147 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

16. INSURANCE

As an accommodation to Customers under Rate Schedules FSS

and FP, PPEC shall be responsible for obtaining for the benefit of

such customers insurance coverage against casualty events that

result in the loss of Gas held in storage in the PPEC storage

facility, provided that such insurance coverage is available to

PPEC on commercially reasonable terms. Insurance coverage for

Customers under Rate Schedules FSS and FP shall be an option

available to such Customers at their election. PPEC and each

Customer shall agree whether or not insurance coverage shall apply

to Customer's Storage Inventory during the negotiation of

Customer's Storage Service Agreement. Whether or not Customer's

agreement includes insurance coverage shall be indicated using the

spaces provided on Customer's Storage Service Agreement. If a

Customer's Storage Service Agreement indicates that PPEC shall

provide insurance coverage, the negotiated, market-based

reservation charges set forth in Customer's Storage Service

Agreement shall be deemed to cover the cost of such insurance

coverage. Unless Customer's Storage Service Agreement expressly

indicates that PPEC shall provide insurance coverage, PPEC shall

have no obligation to obtain insurance coverage for Customer's

benefit and Customer shall be responsible for providing its own

insurance coverage with respect to Gas it tenders for storage and

has stored in the PPEC storage facility located in Louisiana.

PPEC's undertaking to obtain such insurance coverage shall

not be deemed to shift the risk of loss of Customers' Gas in

storage to PPEC. PPEC shall use commercially reasonable efforts

from time to time to identify each applicable Customer under Rate

Schedules FSS and FP as a named insured under any insurance policy

or policies obtained pursuant to this Section 16. A Customer's

recovery of the proceeds of any insurance payment made in respect

of a casualty event involving the loss of Gas held in storage

shall be limited to the Customer's allocable share of the proceeds

of insurance paid over to PPEC, such share to be determined in

accordance with the provisions of Section 12.2 of these General

Terms and Conditions. PPEC shall make insurance policy(ies)

obtained from time to time pursuant to this Section 16 available

to Customers electing to have PPEC acquire insurance for their

benefit for review upon Customer's reasonable request.