Mid Louisiana Gas Company

First Revised Volume No. 2

Effective Date: 01/11/1977, Docket: GT90- 37-000, Status: Effective

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

RATE SCHEDULE X-8

(Continued)

ARTICLE VII

STATEMENTS AND PAYMENT

As to gas delivered at each Exchange Point, Mid Louisiana and Southern

shall deliver to each other statements reflecting the quantities, average Btu

content of gas delivered and pressure base on or before the 15th day of each

calendar month for the previous calendar month, except the statement shall

reflect PVR the second preceding month.

Mid Louisiana and Southern shall have the right, at reasonable hours,

to examine the charts, books and records of each other to the extent

necessary to verify the accuracy of any statements, charge or computation

hereunder. If such examination reveals an inaccuracy, the necessary

adjustment shall be promptly made.

ARTICLE VIII

PROCESSING OF BLOCK 140 GAS

1. Mid Louisiana agrees that the Block 140 gas shall not be processed

for the recovery of liquefiable hydrocarbons prior to its delivery to

Southern, other than by conventional field separation or such processing as

is required to cause the gas to meet the quality specifications set out in

Exhibit A. Mid Louisiana reserves the right to process the gas which it

purchases from Mobil at Block 140 for the extraction of substances

contained therein other than methane (except such methane necessarily

removed in such processing) at the Plant. Mid Louisiana may process the gas

which it purchases from Mobil at Block 140 individually, jointly with

others, or by assignment of such right to one or more other parties.

Southern agrees that, if a portion of the gas flowing through

Southern's pipeline serving the Plant is processed by parties other than

Mid Louisiana, but not in the Plant, such gas, after being processed, will

not be redelivered into Southern's line serving the Plant upstream of the

Plant.