Petal Gas Storage Company

Original Volume No. 1

Effective Date: 03/15/2002, Docket: CP00- 59-002, Status: Effective

First Revised Sheet No. 118 First Revised Sheet No. 118 : Effective

Superseding: Original Sheet No. 118

GENERAL TERMS AND CONDITIONS (Continued)

7.4 Transportation Imbalances. In the event that Petal or Customer receives

from or delivers to, or causes to be received from or to be delivered

to, Transporter at the Point(s) of Receipt or Delivery a quantity of gas

not equal to the volume of gas scheduled by received or taken by

Customer or Petal, a "Transportation Imbalance" may occur. Provided

that Petal has taken or delivered the quantity of gas nominated by

Customer and scheduled by Transporter, Customer shall be liable for all

imbalances under its transportation agreement with Transporter. Upon

notification by Customer or Transporter that a Transportation Imbalance

exists because Petal failed to deliver or receive the quantity of gas

nominated by Customer and scheduled by Transporter, Petal will use its

best efforts to correct the Transportation Imbalance subject to any

restrictions imposed by Transporter(s). Customer agrees to use its best

efforts to prevent or diminish any occurrences of imbalances.

7.5 Measurement. Customer and Petal agree that the volumes of gas

delivered hereunder shall be measured by Petal in accordance with the

Transporter's pipeline tariff, and, as such, may be allowed to

fluctuate within the applicable measurement or flow tolerances on a

daily and monthly basis.

7.6. Costs and Penalties. Customer and Petal shall hold each other harmless

for all costs and penalties which may be assessed under their agreements

with their respective transporters. Customer and Petal shall cooperate

with each other and with the Transporter to verify delivery and receipt

of the volumes of gas delivered hereunder on a timely basis.

7.7 Downstream and Upstream Transportation. Customer shall be responsible

for transportation from the Point(s) of Delivery and payment of all

transportation charges relating thereto. Customer shall be responsible

for transportation to the Point(s) of Receipt and payment of all

transportation charges relating thereto.

8. QUALITY

8.1 Specifications. The gas delivered by either party to the other hereunder

shall meet the quality specifications of the transporting pipeline which

receives or delivers such gas at the Point(s) of Receipt or Delivery, as

applicable, and