Petal Gas Storage Company

Original Volume No. 1

Effective Date: 06/01/2002, Docket: RP02-332-000, Status: Effective

First Revised Sheet No. 60 First Revised Sheet No. 60 : Effective

AVS RATE SCHEDULE

ADVANCING SERVICE

1. AVAILABILITY

This rate schedule is available to any customer for the purchase of natural

gas storage service from Petal, provided that Customer satisfies the

creditworthiness criteria in accordance with Section 3 of the General Terms

and Conditions, when Customer and Petal have executed a Service Agreement

under this Rate Schedule.

2. APPLICABILITY AND CHARACTER OF SERVICE

This rate schedule shall apply to Advancing Service performed by Petal. Gas

may be advanced (delivered from storage) for a period up to one calendar

month, and such period may be extended with Petal's permission. The service

is interruptible in nature. Advancing Service shall be provided to the extent

Petal operationally can provide the service and the provision of such service

does not impair Petal from meeting all of its firm and interruptible service

obligations. Petal will not use customer-owned gas to provide this service,

but will instead use cushion gas to provide this service. Advancing Service

will allow Petal to deliver Gas to Customer in advance of equivalent volumes

of Gas being tendered by Customer to Petal. Advancing Service shall be

offered in accordance with the provisions established in the General Terms and

Conditions of this Tariff and the terms of this Rate Schedule.

Advancing Service rendered by Petal under this Rate Schedule shall consist of:

(a) The Tender to or for the account of Customer at the Delivery Point of a

quantity of gas nominated by Customer.

(b) The receipt of gas on behalf of Customer at the Receipt Point for

replacement of Gas previously delivered by Petal to Customer.

redelivery (return of loaned Gas) schedule setting out the daily

quantities of Gas that Customer will deliver to Petal to reduce

Customer's Advancing Account Balance to zero.

(d) Petal shall use a first-come, first-served priority, for service under

this Rate Schedule, as evidenced by the time and date of a Customer's

nomination for advancement of quantities of Gas from storage.