Pine Needle LNG Company, LLC

Original Volume No. 1

Effective Date: 01/01/2003, Docket: RP01-243-000, Status: Effective

First Revised Sheet No. 76 First Revised Sheet No. 76 : Effective

Superseding: Original Sheet No. 76

GENERAL TERMS AND CONDITIONS

(Continued)

20. CAPACITY RELEASE (Continued)

20.13 Marketing Fee

Pine Needle shall have the right to negotiate a marketing fee with a Releasing

Customer for any mutually agreeable marketing services which are provided by Pine

Needle.

20.14 Permanent Releases

A Customer which has a currently effective executed service agreement with Pine

Needle under Pine Needle's Rate Schedule LNG-1 may release its capacity to a third

party ("Replacement Customer") for the remaining term of the contract and be relieved

of all liability under its service agreement prospective from the effective date of

such release, provided that the following conditions are satisfied:

(a) Customer's capacity was not acquired under temporary capacity release pursuant

to this Section 20.

(b) the Replacement Customer executes a new service agreement under Rate Schedule

LNG-1 pursuant to Part 284 of the regulations of the FERC that is subject to

pre-granted abandonment;

(unless otherwise agreed to by Pine Needle) and accepts all prospective

obligations of the Releasing Customer; and

(d) the Replacement Customer meets the creditworthiness requirements contained in

Section 22 of these General Terms and Conditions.

20.15 Treatment of Storage Inventory

The release of storage capacity (or recall or termination thereof) requires the

Releasing or Replacement Customer, as applicable, to have withdrawn or transferred

any storage inventory balance related to such release capacity by the effective date

of such release, recall or termination. A transfer of storage inventory may be

concurrent with a release of storage capacity (or recall or termination thereof). If

the Releasing or Replacement Customer, as applicable, fails to eliminate any

remaining storage inventory balance related to released storage capacity, such

remaining balance shall be retained by Pine Needle.