Sg Resources Mississippi, L.L.C

Original Volume No. 1

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

Original Sheet No. 163 Original Sheet No. 163 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

32. DISPOSITION OF RETAINED QUANTITIES

In the event that SGRM holds an auction for Gas quantities

retained pursuant to Section 8 of Rate Schedule FSS, Sections 2 or

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

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

Schedule IB, SGRM shall post such quantities on the Internet Web

Site as soon as reasonably practicable. SGRM 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. SGRM shall award

purchase of the Gas to the Customer submitting the highest bid,

and shall notify the Customer submitting the highest bid prior to

4:00 p.m. CCT of the same Day on which SGRM accepts bids;

provided, however, SGRM reserves the right to reject all bids.

When the Gas is purchased at auction, Customer must provide

identification of the existing Storage Service Agreement with SGRM

under which Customer shall store the Gas in SGRM's facilities.

33. OPERATIONAL BALANCING AGREEMENTS

In accordance with Section 284.12(b)(2)(i) of FERC's

regulations, 18 C.F.R. 284.12(b)(2)(1), a pipeline that

interconnects with SGRM facilities must enter into an Operational

Balancing Agreement with SGRM covering the point(s) of

interconnection between its system and SGRM's system. SGRM shall

prepare and tender to the interconnecting pipeline an Operational

Balancing Agreement in the form set forth in this Tariff, or as

may be negotiated by the parties.