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. 161 Original Sheet No. 161 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

of the Customer's Storage Service Agreement, whichever is shorter;

or (3) for service that requires PPEC to construct new facilities,

an amount determined by PPEC prior to the start of construction

that is reasonable in light of the risks of the construction

project, not to exceed Customer's proportional share of the cost

of the facilities to be constructed (which amount shall be reduced

as Customer pays off the obligation for construction of new

facilities); plus, for each of (1), (2) and (3), the market value

of any quantities of Gas loaned pursuant to Customer's Firm Loan

Service Agreement, Interruptible Loan Service Agreement or Hub

Services Agreement. PPEC shall recompute the market value of any

quantities of Gas loaned to a Customer pursuant to Customer's Firm

Loan Service Agreement, Interruptible Loan Service Agreement or

Hub Services Agreement on a daily basis. Customer shall be

required to provide additional Financial Assurances upon two (2)

Business Days' notice any time PPEC's recomputation indicates a

dollar amount for Financial Assurances that exceeds the level of

Financial Assurances previously posted by Customer pursuant to

this Section 31.7 by ten percent (10%) or more.

31.8 Customer's obligation to maintain an Acceptable

Credit Rating or to provide Financial Assurances shall continue

for so long as the Parties are bound by the Storage Service

Agreements and all transactions entered into thereunder. This

obligation shall terminate when Customer has performed or

satisfied all of its obligations under the Storage Service

Agreements and, upon such termination, PPEC shall return to

Customer, if applicable:

(a) the Letter of Credit and funds held by PPEC as

security pursuant to Section 31.7(a) then in its possession but

only to the extent it has not then applied such funds pursuant to

this FERC Gas Tariff to the debts, expenses, costs, assessments

and liabilities payable by Customer to PPEC pursuant to the

provisions of the Storage Service Agreement(s);

(b) the Guarantee held by PPEC pursuant to Section

31.7(b);

(c) any security accepted by PPEC pursuant to Section

31.7(c); or

(d) any amount prepaid by Customer pursuant to Section

31.7(d) not required to pay charges for service rendered under the

Storage Service Agreements.

32. DISPOSITION OF RETAINED QUANTITIES

In the event that PPEC holds an auction for Gas quantities

retained pursuant to Section 8 of Rate Schedule FSS, Section 8 of

Rate Schedule FP, Sections 2 or 8 of Rate Schedule ISS, Sections 2

or 8 of Rate Schedule, Sections 2 or 8 of Rate Schedule IP, or

Sections 2 or 8 of Rate Schedule IB, PPEC shall post such

quantities on the Internet Web Site as soon as reasonably

practicable. PPEC shall accept bids only during the time period

from 7:00 a.m. until 11:00 a.m. CCT on the second Business Day

following such posting. PPEC shall award purchase of the Gas to

the Customer submitting the highest bid, and shall notify the

Customer