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. 148 Original Sheet No. 148 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

16. INSURANCE

As an accommodation to Customers under Rate Schedules FSS,

SFS, ISS, IP and IB, SGRM shall be responsible for obtaining for

the benefit of such customers insurance coverage against casualty

events that result in the loss of Gas held in storage in the SGRM

storage facility, provided that such insurance coverage is

available to SGRM on commercially reasonable terms. SGRM's

undertaking to obtain such insurance coverage shall not be deemed

to shift the risk of loss of Customers' Gas in storage to SGRM.

SGRM shall use commercially reasonable efforts from time to time

to identify each Customer under Rate Schedules FSS, SFS, ISS, IP

and IB as a named insured under any insurance policy or policies

obtained pursuant to this Section 16. A Customer's recovery of

the proceeds of any insurance payment made in respect of a

casualty event involving the loss of Gas held in storage shall be

limited to the Customer's allocable share of the proceeds of

insurance paid over to SGRM, such share to be determined in

accordance with the provisions of Section 12.2 of these General

Terms and Conditions. The payment of any claim under insurance so

procured by SGRM shall be based upon the terms of the insurance

policies, and the Force Majeure provisions of this FERC Gas Tariff

shall not be invoked to excuse payment of any claim allowable

under the terms of the insurance policies. SGRM shall make

insurance policy(ies) obtained from time to time pursuant to this

Section 16 available to Customer for review upon Customer's

reasonable request.