Pine Needle LNG Company, LLC

Original Volume No. 1

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

Original Sheet No. 46 Original Sheet No. 46 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

5. MEASUREMENT EQUIPMENT

(a) Measuring Facilities

Pine Needle will install, maintain and operate a measuring facility

properly equipped with standard orifice meters, flange connections,

orifice plates and other necessary measuring equipment or other

standard type meter suitable for the purpose by which the quantities

of gas received for liquefaction and vaporized for delivery shall be

measured and determined. Pine Needle shall use Electronic Gas

Measurement ("EGM") standard equipment for all custody transfer

measured volumes. The Heating Value and Specific Gravity of natural

gas received or delivered shall be measured and determined as provided

in Section 4(b)(v) and (vii) of these General Terms and Conditions.

Orifice meters, where used, shall be installed and operated in

accordance with ANSI 2530/API 14.3 "Orifice Metering of Natural Gas

and Other Related Hydrocarbon Fluids," latest revision, and shall

include the use of straightening vanes. Positive displacement and

turbine meters, where used, shall be installed and operated in

accordance with A.G.A. Transmission Measurement Committee Report No. 7

"Measurement of Fuel Gas by Turbine Meters."

(b) Joint Presence

Each party shall have the right to be present at the time of

installing, reading, cleaning, changing, repairing, inspecting,

testing, calibrating, or adjusting done in connection with measuring

equipment involved in billing and used in measuring or checking the

measurement of receipts and deliveries. The records from such

measuring equipment shall remain the property of their owner, but upon

request, each will submit to the other its records, together with

calculations therefrom for inspection and verification, subject to

return within ten (10) days after receipt thereof.

All installations of measurement equipment applying to or affecting

receipts and deliveries shall be made in such manner as to permit an

accurate determination of the quantity of natural gas delivered and

ready verification of the accuracy of measurement. Care shall be

exercised by Pine Needle and Customer in the installation, maintenance

and operation of pressure regulating equipment so as to prevent any

inaccuracy in the determination of the quantity of gas received or

delivered hereunder.