Petal Gas Storage Company

Original Volume No. 1

Effective Date: 08/16/1999, Docket: RP99-443-001, Status: Effective

Sub. Second Revised Sheet No. 101 Sub. Second Revised Sheet No. 101 : Effective

Superseding: Second Revised Sheet No. 101

GENERAL TERMS AND CONDITIONS

1. INTRODUCTORY STATEMENT

Except where expressly stated otherwise, the General Terms and Conditions of

Petal's currently effective FERC Gas Tariff shall apply to all natural gas

storage service rendered by Petal under any storage service agreement,

including, but not limited to, service under the FSS Rate Schedule and the ISS

Rate Schedule.

2. DEFINITIONS

2.1 Bcf means one billion (1,000,000,000) cubic feet.

2.2 Btu means one British Thermal Unit, and shall be the amount of

heat required to raise the temperature of one (1) pound of

water one degree Fahrenheit at sixty degrees Fahrenheit (Btu

is measured on a dry basis at 14.73 dry psia).

2.3 Business Day shall mean Monday through Friday, excluding

Federal Banking Holidays for transactions in the United

States, and similar holidays for transactions in Canada and

Mexico.

2.4 Contract Year shall mean the twelve (12) month period

beginning on the date storage service under a storage

agreement commences and each subsequent twelve month period

thereafter during the term of the agreement.

2.5 A cubic foot of gas equals the volume of gas that occupies one

cubic foot as a temperature of 60 degrees F and a pressure of

14.73 dry psia. Mcf means one thousand (1,000) cubic feet and

MMcf means one million (1,000,000) cubic feet.

2.6 Customer means the party that holds all lawful right and title

to the natural gas that is being stored and who executes the

storage service agreement, or the purchaser of natural gas

from Petal who executes the sales service agreement.

2.7 Customer's stored gas or gas stored means the quantity of gas

stored by Petal for Customer's account.