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. 153 Original Sheet No. 153 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

20.2 Title Transfers of Gas

(a) Transfers of title between Customers and/or Storage

Service Agreements under which Gas is delivered to SGRM, withdrawn

from SGRM's storage or wheeled on SGRM's system may be permitted

by SGRM at Point(s) of Receipt and Point(s) of Delivery or on

SGRM's system on an Interruptible basis pursuant to Customer's

Title Transfer Form.

(b) Requests for such transfers shall be made in

accordance with the nomination procedures set forth in Section 8,

Nominations and Scheduling, of the General Terms and Conditions

herein. SGRM shall not unreasonably withhold approval of such

transfers.

(c) For each title transfer nominated by Customer under

Section 20.2(b) herein, Customer shall pay the gas title transfer

rate set forth on the executed Title Transfer Form.

21. PENALTIES

21.l A Customer shall be liable for and shall be required

to reimburse SGRM for all penalties, charges and fees which SGRM

is required to pay to Transporter(s) as a consequence of

Customer's actions. The recovery of such penalty amounts shall be

on an as-billed basis.

21.2 In addition to the payment of the penalties set

forth in Section 21.1 herein, the responsible Customer shall also

be liable for, and shall reimburse SGRM, for all costs incurred by

SGRM as a consequence of such Customer's actions.

22. TRANSMISSION PROVIDER STANDARDS OF CONDUCT

SGRM does not meet FERC's definition of a "Transmission

Provider" (18 C.F.R. 358.3(a)) because it is a storage company

authorized to charge market-based rates, is not interconnected

with the facilities of any affiliated interstate natural gas

pipeline, has no exclusive franchise area, has no captive

customers and has no market power. Therefore, SGRM is not

required to comply with FERC's Transmission Provider Standards of

Conduct, as promulgated in Order Nos. 2004, et al., and codified

at 18 C.F.R. Part 358.