Petal Gas Storage Company

Original Volume No. 1

Effective Date: 07/01/2002, Docket: RP02-281-000, Status: Effective

Third Revised Sheet No. 10 Third Revised Sheet No. 10 : Effective

Superseding: Second Revised Sheet No. 10

FSS RATE SCHEDULE

FIRM STORAGE SERVICE (Continued)

4.5 Evaluation of Bids.

(a) A Releasing Customer may specify the criteria for determining

the winning bid. These criteria must be objectively stated,

applicable to all potential bidders and nondiscriminatory. The

Releasing Customer shall not be entitled to reject any eligible

bid which meets its specified criteria.

(b) If a Releasing Customer does not specify the criteria for

determining the winning bid, Petal shall apply the rules in

Section 4.2 of the General Terms and Conditions of this Tariff.

A bid is "eligible" and a Replacement Customer may be

"designated" only if the person submitting the bid or the

Replacement Customer meets the creditworthiness criteria set

forth in Section 3 of the General Terms and Conditions of this

Tariff.

4.6 Permanent Replacement Customers. A Customer may release all or any part

of its capacity on a firm, permanent basis, provided that:

(a) a Replacement Customer has been identified which meets the

creditworthiness criteria in Section 3 of the General Terms and

Conditions of Petal's Tariff; and

(b) the Replacement Customer is willing to execute a FSS Agreement

with Petal for a minimum term equal to the remaining term of the

Releasing Customer at rates and terms identical to those in

Releasing Customer's Agreement or otherwise acceptable to Petal;

and

Agreement with Petal to reflect the permanent release of capacity

on the date that its Replacement Customer's FSS Agreement takes

effect.

4.7 Recall of Released Capacity. Releasing Customers may, to the extent

permitted as a condition of the capacity release, recall released

capacity (scheduled or unscheduled) at the Timely Nomination cycle and

the Evening Nomination cycle, and recall unscheduled released capacity

at the Intra-Day 1 and Intra-Day 2 Nomination cycles by providing

notice to Petal by the following times for each cycle: 8:00 a.m. CCT

for the Timely Nomination cycle; 5:00 p.m. CCT for the Evening

Nomination cycle; 8:00 a.m. CCT for the Intra-Day 1 Nomination cycle;

and 3:00 p.m. for the Intra-Day 2 Nomination cycle. Notification to

Replacement Customers shall be provided by Petal within one hour of

receipt of recall notification.