Petal Gas Storage Company

Original Volume No. 1

Effective Date: 11/02/1998, Docket: RP99- 44-002, Status: Effective

Second Revised Sheet No. 113 Second Revised Sheet No. 113 : Effective

Superseding: First Revised Sheet No. 113

GENERAL TERMS AND CONDITIONS

(continued)

(d) Petal will accept requests for firm storage

service for any storage capacity remaining available after an

open season. The remaining capacity shall be allocated on a

first-come, first-served basis. That is, the first customer

offering to pay a rate for storage that Petal finds acceptable

shall be allocated capacity.

4.3 Interruptible Service. Agreements relating to

interruptible service obligations and extensions of the

service shall have priority as follows:

(a) The order of priority relating to storage

service requests under Rate Schedule ISS shall be by the

average daily Interruptible Storage Charge agreed to by Petal

and Customer, with the highest charge calculated on a daily

basis given highest priority. Volumetric fees will have the

lowest priority.

(b) Should two or more interruptible customers

have the same priority, capacity will be allocated to the

Customer that submitted the earlier request to Petal.

4.4 Interruption.

(a) If on any day, due to any cause whatsoever,

Petal's capability to receive or deliver volumes is impaired

so that Petal is unable to receive or deliver all the volumes

which are scheduled, then interruption of storage service

shall be made in the reverse order of priority set forth in

Section 4.1. If firm service must be interrupted,

interruption of storage service to firm customers shall be pro

rata based on MDWQ. Interruption of storage service to

interruptible customers shall based on the storage service

charges paid by Customer, with the lowest rate being

interrupted first. Any ties shall be interrupted on a pro

rata basis.

(b) Petal shall provide Customer as much advance

notice of any interruption as is practicable under the

circumstances. Such notice shall state the reduced volumes of

gas that Petal estimates it will be able to inject or withdraw

for Customer and the estimated duration of the interruption. Petal shall provide

Customer such notice by telephone and/or facsimile.