Pine Needle LNG Company, LLC

Original Volume No. 1

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

Original Sheet No. 110 Original Sheet No. 110 : Effective

FORM OF SERVICE AGREEMENT

(For Use Under Rate Schedule LNG-2)

(Continued)

ARTICLE III

TERM OF AGREEMENT

This agreement shall be effective as of ______________ and shall remain in force

and effect until __________________, and month to month thereafter, subject to

termination by either party upon __________months prior written notice to the other.

ARTICLE IV

RATE SCHEDULE, RATE AND FUEL

1. Customer shall pay Pine Needle for service rendered hereunder in

accordance with Pine Needle's Rate Schedule LNG-2 and the applicable provisions of the

General Terms and Conditions of Pine Needle's Original Volume No. 1 FERC Gas Tariff as

filed with the Federal Energy Regulatory Commission, and as the same may be amended or

superseded from time to time. Such rate schedule and General Terms and Conditions are

by this reference made a part hereof.

2. Pine Needle shall have the unilateral right to propose, file and make

effective with the Federal Energy Regulatory Commission, or other regulatory authority

having jurisdiction, changes and revisions to the rates and rate design proposed

pursuant to Section 4 of the Natural Gas Act, or to propose, file, and make effective

superseding rates or rate schedules, for the purpose of changing the rates, charges,

rate design, terms and conditions of service and other provisions thereof effective as

to Customer; provided however that the (i) firm character of service, (ii) term of

agreement (as set forth in Article III above), (iii) quantities, and (iv) points of

receipt and delivery shall not be subject to unilateral change under this paragraph.

Customer shall have the right to file with the Commission or other regulatory

authority in opposition to any such filings or proposals by Pine Needle.

ARTICLE V

ODORIZATION

The gas delivered by Pine Needle shall not be odorized and Customer agrees to

perform any odorization required by law.

ARTICLE VI

INDEMNIFICATION

Customer agrees to indemnify, defend and hold harmless Pine Needle from any and

all liabilities, claims, suits or causes of action of any type arising out of or

relating to delivery of unodorized gas by Pine Needle to Customer or any operations

provided for hereunder when such operations are under the control of Customer, its

agents, representatives or contractors.