Pine Prairie Energy Center, LLC

Original Volume No. 1

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

Original Sheet No. 152 Original Sheet No. 152 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

20.2 Title Transfers of Gas

(a) Transfers of title between Customers and/or Storage

Service Agreements under which Gas is delivered to PPEC, withdrawn

from PPEC's storage or wheeled on PPEC's system may be permitted

by PPEC at Point(s) of Receipt and Point(s) of Delivery or on

PPEC's system on an Interruptible basis pursuant to Customer's Hub

Services Agreement.

(b) Requests for such transfers shall be made in

accordance with the nomination procedures set forth in Section 8,

Nominations and Scheduling, of the General Terms and Conditions

herein. PPEC shall not unreasonably withhold approval of such

transfers.

21. PENALTIES

21.l A Customer shall be liable for and shall be required

to reimburse PPEC for all penalties, charges and fees which PPEC

is required to pay to Transporter(s) as a consequence of

Customer's actions. The recovery of such penalty amounts shall be

on an as-billed basis.

21.2 In addition to the payment of the penalties set

forth in Section 21.1 herein, the responsible Customer shall also

be liable for, and shall reimburse PPEC, for all costs incurred by

PPEC as a consequence of such Customer's actions.

22. TRANSMISSION PROVIDER STANDARDS OF CONDUCT

PPEC does not meet FERC's definition of a "Transmission

Provider" (18 C.F.R. 358.3(a)) because it is a storage company

authorized to charge market-based rates, is not interconnected

with the facilities of any affiliated interstate natural gas

pipeline, has no exclusive franchise area, has no captive

customers and has no market power. Therefore, PPEC is not

required to comply with FERC's Transmission Provider Standards of

Conduct, as promulgated in Order Nos. 2004, et al., and codified

at 18 C.F.R. Part 358.