Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 105 Original Sheet No. 105 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

3. REQUEST FOR SERVICE

3.1 Procedures for Sale of Capacity.

(a) Sale of Capacity. Upon the availability of new

storage capacity resulting from an expansion of SGRM's facilities,

SGRM shall sell such capacity to prospective Customers either via

the open season procedures described in Sections 3.1(b)-(f) below

or via the first-come, first-served procedures described in

Section 3.1(g) below, with the selection of the procedures being

at SGRM's sole option. This Section 3.1 shall apply to sales of

capacity under Rate Schedules FSS and SFS.

(b) Notice of open season. If SGRM elects to conduct

an open season pursuant to Section 3.1(a) above, SGRM shall post

notice of the open season on its Internet Web Site. Such notice

shall set forth when the open season begins and ends, the type of

service being offered, how and where interested parties may submit

requests for service, the criteria that will be used to evaluate

bids ("Bid Evaluation Procedures"), and additional details about

the open season.

(c) Duration. An open season held pursuant to

Section 3.1(b) above shall be held for a period of not less than

five (5) Business Days. During this time, SGRM will accept bids

from potential Customers for the service identified in the notice

of the open season.

(d) At the conclusion of the open season, the value

of each submitted bid will be determined according to the Bid

Evaluation Procedures. SGRM reserves the right to reject any bid

which (i) may detrimentally impact the operational integrity of

SGRM's facility, (ii) yields an economic value that is

unacceptable to SGRM, (iii) does not satisfy all of the terms of a

specific open season, (iv) does not contain all of the required

information specified in the notice of the open season, (v)

contains terms and conditions other than those contained in SGRM's

FERC Gas Tariff, and/or (vi) does not meet SGRM's creditworthiness

requirements set forth in Section 3.3 of these General Terms and

Conditions. If SGRM rejects any request for available capacity

posted pursuant to this Section 3.1(d), SGRM will notify the

potential Customer that submitted the rejected bid of the

reason(s) for such rejection via e-mail.

(e) During the allocation process at the conclusion

of an open season, storage capacity will be allocated to the

acceptable bid(s) in accordance with the Bid Evaluation

Procedures.