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. 156 Original Sheet No. 156 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

28. DEFAULT AND TERMINATION

 

28.1 Customer shall be in default under this FERC Gas

Tariff or the Storage Service Agreement if:

 

(a) Customer shall fail to pay any sums due to PPEC

hereunder and such failure continues for a period of five (5)

Business Days after written notice to Customer by PPEC;

 

(b) Customer fails to perform any of its material

covenants or obligations under this FERC Gas Tariff or the Storage

Service Agreement, other than obligations to make payments to

PPEC, and Customer does not remedy such failure within a period of

thirty (30) days after receipt of a notice from PPEC;

 

(c) Customer or its guarantor becomes insolvent, as set

forth in Section 3.3(i); or

 

(d) Customer fails to provide or maintain Financial

Assurances pursuant to Section 31.

 

Customer shall indemnify and hold harmless PPEC from and against

any costs or losses resulting from (a), (b), (c) or (d) above.

 

28.2 In the event of any Default by Customer, in addition

to all other remedies available to it pursuant to the Storage

Service Agreements or at law and in equity, PPEC may do any or all

of the following:

 

(a) refuse to accept any further deliveries of Gas from

or on behalf of Customer pursuant to all or any transactions;

 

(b) refuse to deliver Gas to or on behalf of Customer

pursuant to all or any transactions;

 

(c) set off any amount owing by PPEC to Customer

pursuant to any transaction(s) against amounts otherwise owing by

Customer to PPEC pursuant to any other transaction(s);

 

(d) suspend performance until Customer corrects the

default in full;