Pine Needle LNG Company, LLC

Original Volume No. 1

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

Original Sheet No. 42 Original Sheet No. 42 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

2. DEFINITIONS (Continued)

 

(i) "Natural Gas or Gas" - Natural gas processed or unprocessed, vaporized

liquid natural gas, synthetic gas, gas from coal seams or any mixture

of these gases.

 

(j) "Potential Customers" - All current storage customers of Pine Needle

as well as all persons who have pending requests for storage service

or for information regarding storage services of Pine Needle.

 

(k) "Maximum Rate" - The highest cost of service based rate (including

applicable surcharges) specified under each respective rate schedule,

which rate shall be the recourse rate.

 

(l) "Business Day" - Monday through Friday, excluding Federal Banking

Holidays for transactions in the U.S., and similar holidays for

transactions occurring in Canada and Mexico.

 

(m) "Point of Delivery" - The point or points at which Pine Needle

delivers gas from its facilities to Customers or for the account of

Customer; each Point of Delivery shall be set forth in the service

agreement(s) with Customer.

 

(n) "Point of Receipt" - The point or points at which Pine Needle receives

gas into its facilities from or for the account of Customer; each

Point of Receipt shall be set forth in the service agreement(s) with

Customers.

 

 

3. QUALITY

 

(a) May Be Processed Gas

 

Moisture, impurities, helium, natural gasoline, butane, propane, and

any other hydrocarbons except methane may be removed from the natural

gas delivered to or for the account of Customer prior to such

delivery. Pine Needle may subject, or permit the subjection of, the

natural gas to compression, cooling, cleaning and other processes.

 

(b) Heating Value

 

The natural gas delivered by Pine Needle to or for the account of

Customer or delivered by Customer or Customer's transporter to Pine

Needle for liquefaction shall have a daily average Heating Value of

not less than 980 Btu per cubic foot and not more than 1100 Btu per

cubic foot as determined in Section 2(d) of these General Terms and

Conditions.