Pine Needle LNG Company, LLC

Original Volume No. 1

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

Original Sheet No. 44 Original Sheet No. 44 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3. QUALITY (Continued)

(d) Failure to Conform

If the natural gas offered for delivery by Pine Needle shall fail at

any time to conform to any of the specifications set forth in these

General Terms and Conditions, then upon notification by Customer to

Pine Needle of such failure, Customer may, at its option, refuse to

accept delivery pending correction by Pine Needle. Upon Pine Needle's

failure promptly to remedy any deficiency in quality as specified in

Paragraph (c) of this Section 3, Customer may accept delivery of such

natural gas and may make changes necessary to bring such natural gas

into conformity with such specifications, and Customer shall then

deduct from future payments any reasonable expense incurred by it in

effecting such change.

If the natural gas tendered by Customer or Customer's transporter to

Pine Needle for liquefaction shall fail at any time to conform to any

of the specifications set forth in these General Terms and Conditions

or might otherwise interfere with or adversely affect Pine Needle's

liquefaction or storage process, then upon notification by Pine Needle

to Customer, Pine Needle may, at its option, refuse to accept such gas

pending correction by Customer or Customer's transporter.

4. MEASUREMENTS

(a) Measurement Unit

The unit of the natural gas deliverable shall be a Dekatherm (one Dt)

of gas on the measurement basis hereinafter set forth.

(b) Quantity and Heating Value

The quantity and the Heating Value of 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 be

determined as follows:

(i) The unit of volume for the purpose of measurement shall be

one (1) cubic foot of gas at a temperature of 60 degrees

Fahrenheit and at an absolute pressure of fourteen and

seventy-three hundredths (14.73) pounds per square inch

absolute.

(ii) The unit of weight for the purpose of measurement shall be

one (1) pound mass of gas.

(iii) The average absolute atmospheric pressure shall be assumed

to be 14.7 pounds per square inch.