Petal Gas Storage Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-435-000, Status: Pending

Third Revised Sheet No. 11 Third Revised Sheet No. 11 : Pending

Superseding: Second Revised Sheet No. 11

FSS RATE SCHEDULE

FIRM STORAGE SERVICE (Continued)

4.8 Offers to Purchase Released Capacity. An offer to purchase released

capacity from an FSS Customer may be tendered by any person who (i) meets

the creditworthiness criteria set forth in Section 3 of the General Terms

and Conditions of this Tariff; (ii) accepts responsibility for arranging

firm or interruptible transportation on a connecting pipeline; and (iii)

is otherwise eligible to become a Replacement Customer. The offer to

purchase may be submitted in writing or via Petal's Internet website,

setting forth the following information:

(a) The identity of the person making the offer, together with

sufficient information about such person to enable Petal to

determine whether such person meets the creditworthiness

criteria.

(b) The volume(s) of capacity such person desires to purchase.

(c) The MDIQs, TMDIQ, MDWQs and TMDWQ such person desires.

(d) The rate(s) such person is offering to pay.

(e) The duration of the service to which the offer pertains, and

whether such capacity is sought on a firm or recallable basis.

(f) The conditions, if any, upon which the seller of the capacity may

recall it.

(g) Any other terms and conditions upon which the offer is contingent.

(h) Such other pertinent information as Petal may request.