Pine Needle LNG Company, LLC

Original Volume No. 1

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

Original Sheet No. 77 Original Sheet No. 77 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

21. PERIODIC RATE ADJUSTMENTS AND SURCHARGES

Pine Needle and Customer recognize that Pine Needle shall, from time to time,

experience changes in costs related to providing service under this FERC Gas

Tariff, including, but not limited to, changes in the cost of labor, benefits,

materials and supplies, taxes, and required rate of return, costs associated

with the resolution of past disputes or outstanding uncertainties concerning

amounts owed by Pine Needle or Customer or attributable to Pine Needle or

Customer, and costs generated by decisions of the Commission, the courts, or by

an arbitration panel or other body having jurisdiction over Pine Needle. Pine

Needle hereby notifies Customers that it may be appropriate, equitable, and

consistent with cost responsibility to allocate such costs among Customers based

on or taking into account past period factors, such as contract demand levels,

purchases, or other factors related to a prior period of time. Pine Needle

shall have the right, from time to time, to make rate change filings based in

whole or in part on factors related to past periods. Customer shall have the

right to intervene and protest any such filings.

22. CREDIT WORTHINESS

22.1 Pine Needle shall not be required to provide service to any Customer

who fails to meet Pine Needle's standards for credit worthiness. In

this regard Pine Needle may require that Customer provide the

following information:

(a) Current financial statements (to include a balance sheet,

income statement and statement of cash flow), annual

reports, 10-K reports or other filings with regulatory

agencies, a list of all corporate affiliates, parent

companies and subsidiaries and any reports from credit

agencies which are available. If audited financial

statements are not available, then Customer also should

provide an attestation by its chief financial officer that

the information shown in the unaudited statements is true,

correct and a fair representation of Customer's financial

condition;

(b) A bank reference and at least three trade references;

under any chapter of the bankruptcy laws and must not be

subject to liquidation or debt reduction procedures under

state laws, such as an assignment for the benefit of

creditors, or any informal creditor's committee agreement.

An exception can be made for a Customer who is a debtor in

possession operating under Chapter XI of the Federal

Bankruptcy Act but only with adequate assurances that the

transportation billing will be paid promptly as cost of

administration under the federal court's jurisdiction;