Pine Needle LNG Company, LLC

Original Volume No. 1

Effective Date: 01/01/2003, Docket: RP01-243-001, Status: Effective

Substitute First Revised Sheet No. 16 Substitute First Revised Sheet No. 16 : Effective

Superseding: Original Sheet No. 16

RATE SCHEDULE LNG-1

Natural Gas Liquefaction, Storage and Delivery Service

(Guilford County, North Carolina)

(Continued)

8. REQUEST FOR SERVICE

Requests for service hereunder shall be considered acceptable if Customer has completed and

returned Pine Needle's service request form (which is available to all Customers and

potential Customers on request) electronically, on the EBB or to the following address:

Pine Needle LNG Company, LLC

c/o Pine Needle Operating Company

Attention: Customer Service

P. O. Box 1396

Houston, Texas 77251

Such requests for service shall contain the information specified in Pine Needle's service

request form, as such may be revised from time to time, and

(a) Either with the request for service or at the time of execution of the service

agreement, such other information, in writing, as is required to comply with

regulatory reporting or filing requirements; and

(b) Sufficient information to determine Customer's credit worthiness in accordance with

Section 22 of the General Terms and Conditions of this Tariff.

9. CAPACITY RELEASE AND RE-RELEASE

Customers may release and re-release their Storage Capacity and associated Vaporization

Quantity and Liquefaction Quantity rights as set forth under this rate schedule and in

accordance with the capacity release provisions outlined in Section 20 of the General Terms

and Conditions of this Tariff.

10. TRANSFER OF LNG BALANCE

Any Customer ("Transferring Customer") under this rate schedule may agree to transfer all or

any portion of its Liquefied Natural Gas Balance to another Customer ("Receiving Customer")

under this rate schedule, provided that such transfer does not cause: (a) the Receiving

Customer to exceed its Storage Capacity Quantity specified in its service agreement unless

the Receiving Customer, before such transfer occurs, enters into a storage capacity release

arrangement providing for the additional Storage Capacity in accordance with this rate

schedule and Section 20 of the General Terms and Conditions or, (b) the Transferring

Customer's Liquefied Natural Gas Balance to be less than zero. Transferring Customer must

provide Pine Needle with notice (in writing or electronically, if available) and Receiving

Customer must provide confirmation (in writing or electronically, if available) prior to the

beginning of the day that the Liquefied Natural Gas Balance is to be transferred. Such

transfer is irrevocable once such notice is given to Pine Needle.