Pine Needle LNG Company, LLC

Original Volume No. 1

Effective Date: 05/01/1999, Docket: CP96- 52-003, Status: Effective

Original Sheet No. 41 Original Sheet No. 41 : Effective

GENERAL TERMS AND CONDITIONS

1. APPLICATION

The following General Terms and Conditions apply to all services rendered by

Pine Needle under its rate schedules on file with and subject to the

jurisdiction of the Federal Energy Regulatory Commission.

2. DEFINITIONS

Terms defined in the rate schedules in this Tariff shall have the same meaning

in these General Terms and Conditions. The following terms shall have the

meanings defined below:

(a) "Gas Day" - A period of 24 consecutive hours beginning at 9 A.M.

Central Clock Time which includes the recognition of Day Light Saving

Time.

(b) "Month" - A period beginning at 9 A.M. Central Clock Time on the first

day of the calendar month and shall end at the aforesaid time on the

first day of the next succeeding calendar month.

beginning on the date of initial delivery of natural gas under the

contract, or on any anniversary thereof; provided, however, that any

such year which contains a date of February 29th shall consist of

three hundred sixty-six (366) consecutive days.

(d) "Heating Value" - Gross Heating Value on a dry basis which is the

number of British thermal units produced by the complete combustion at

constant pressure of the amount of dry gas which would occupy a volume

of one cubic foot at 14.73 Psia and 60oF with combustion air at the

same temperature and pressure as the gas, the products of combustion

being cooled to the initial temperature of the gas and air and the

water formed by combustion condensed to the liquid state.

(e) "British Thermal Unit" (Btu) - The amount of heat required to raise

the temperature of one (1) pound of water 1 degrees Fahrenheit at 60

degrees Fahrenheit.

(f) "Mcf" - 1,000 cubic feet of gas.

(g) "Scheduled Daily Delivery" - The daily amounts of gas nominated

electronically through Pine Needle's EBB or by electronic data

interchange by Customer to Pine Needle covering a specific period of

time and scheduled for delivery by Pine Needle pursuant to the

provisions of Pine Needle's rate schedules.

(h) "Dekatherm" (dt) - The quantity of heat energy which is 1,000,000

British Thermal Units.