Pine Needle LNG Company, LLC

Original Volume No. 1

Effective Date: 02/27/2005, Docket: RP05-167-000, Status: Effective

Sixth Revised Sheet No. 40 Sixth Revised Sheet No. 40 : Effective

Superseding: Fourth Revised Sheet No. 40

GENERAL TERMS AND CONDITIONS

Index to Provisions

Section Sheet

No. Provisions No.

------- ----------- -----

1 Application 41

2 Definitions 41

3 Quality 42

4 Measurements 44

5 Measurement Equipment 46

6 Billing 48

7 Payments 49

8 Customer Information 51

9 Possession of Gas 51

10 Warranty of Title to Gas 51

11 Force Majeure and Operating Conditions 52

12 Pressures 55

13 Duly Constituted Authorities 55

14 Notices 55

15 Maximum Daily Delivery Obligations 55

16 Annual Charge Adjustment (ACA) Provision 56

17 Nominations, Confirmations and Allocation of Capacity 57

18 Fuel Retention Adjustment Provision 63

19 Electric Power Cost Adjustment Provision 65

20 Capacity Release 67

21 Periodic Rate Adjustments and Surcharges 77

22 Credit Worthiness 77

23 Right of First Refusal Procedures 80

24 Procedures For Allocating Available Firm

Storage Capacity 82

25 Pine Needle's Electronic Bulletin Board 83

26 Operational Flow Orders 87

27 Policy for Consolidation of Service Agreements 88

28 Standards for Business Practices 89

29 Interpretation of Rates and Quantities

in Thermal Units 89B

30 Complaint Procedures 90

31 Extension of Service Agreement 90