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. 141 Original Sheet No. 141 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

all information necessary to permit scheduling pursuant to such

requirements. In addition, SGRM will not be required to begin

wheeling, injections or withdrawals for a Customer's account

unless and until the data required for nominations, provided for

in Section 8, have been confirmed by the applicable Transporter to

SGRM's Gas dispatcher.

9.4 Transportation Imbalances. In the event that SGRM or

Customer delivers or causes to be delivered to Transporter at the

Point(s) of Receipt or Delivery a quantity of Gas not equal to the

quantity of Gas received or taken by Customer or SGRM, a

"Transportation Imbalance" may occur. Provided that SGRM has taken

or delivered the quantity of Gas nominated by Customer and

scheduled by Transporter, Customer shall be liable for all

imbalances under its transportation agreement with Transporter.

Upon notification by Customer or Transporter that a Transportation

Imbalance exists because SGRM failed to deliver or receive the

quantity of Gas nominated by Customer and scheduled by

Transporter, SGRM will endeavor to correct the Transportation

Imbalance subject to any restrictions imposed by Transporter but

SGRM shall be solely responsible and liable for any charges,

penalties, costs and expenses incurred or payable by either party

as a result of the Transportation Imbalance. Customer agrees to

use its best efforts to prevent or diminish any occurrences of

imbalances.

9.5 Measurement. Customer and SGRM agree that the

quantity of Gas delivered hereunder shall be measured by SGRM in

accordance with the Transporter's pipeline tariff applicable to

each Point of Delivery/Receipt, and, as such, may be allowed to

fluctuate within the applicable measurement or flow tolerances on

a daily and Monthly basis.

9.6 Costs and Penalties. Customer shall hold SGRM

harmless for all costs and penalties which may be assessed by

Transporter(s) under Customer's transportation agreement(s) with

Transporter(s), unless the costs and penalties are due to the

negligence of SGRM. Customer and SGRM shall cooperate with each

other and with the Transporter(s) to verify delivery and receipt

of the volumes of Gas delivered hereunder on a timely basis.

9.7 Downstream and Upstream Transportation. Customer

shall be responsible for transportation from the Point(s) of

Delivery and payment of all transportation charges relating

thereto. Customer shall be responsible for transportation to the

Point(s) of Receipt and payment of all transportation charges

relating thereto.

10. QUALITY

10.1 Specifications. The Gas delivered by either party

to the other hereunder shall meet the quality specifications of

the Transporter which receives or delivers such Gas at the Point

of Receipt or Delivery, as applicable, and, unless such

Transporter's quality specifications are more stringent, shall be

of such quality that it shall meet at least the following

specifications: