Pine Needle LNG Company, LLC

Original Volume No. 1

Effective Date: 07/01/2002, Docket: RP02-310-000, Status: Effective

Original Sheet No. 75A Original Sheet No. 75A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

20. CAPACITY RELEASE (Continued)

20.11 Pine Needle's Criteria for Best Bid

Pine Needle's standard for selecting the Best Bid shall be the highest net present

value of demand charges. In case of ties, unless otherwise specified by the

Releasing Customer, a random and blind selection process will be used to select the

winning bid.

20.12 Billing and Payment

The Replacement Customer shall be billed by Pine Needle and shall make payments to

Pine Needle in accordance with the terms of Pine Needle's applicable rate schedule

and the service agreement(s), and Pine Needle shall simultaneously credit (on a

contingent basis) all demand charges billed to the Replacement Customer to the

Releasing Customer's bill in that month. If the Replacement Customer fails to pay

the demand charges by the due date, Pine Needle shall reverse the credit and bill the

Releasing Customer in the following month for said demand charges, plus interest, and

the rights to the capacity shall, at the election of the Releasing Customer, revert

to the Releasing Customer for the remaining term of the release, subject to Pine

Needle's nomination deadlines, as set forth in Section 17.1 of the General Terms and

Conditions.