Petal Gas Storage Company

Original Volume No. 1

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

First Revised Sheet No. 121 First Revised Sheet No. 121 : Effective

Superseding: Original Sheet No. 121

GENERAL TERMS AND CONDITIONS (Continued)

its successors and assigns, that the gas it delivers hereunder shall

be free and clear of all liens, encumbrances, or claims whatsoever;

and that it will indemnify Petal and save it harmless from all claims,

suits, actions, damages, costs and expenses arising directly or

indirectly from or with respect to the title to gas tendered to Petal

hereunder.

10.2 As between Customer and Petal: Customer shall be in control and

possession of the gas prior to delivery to Petal for injection at the

Point(s) of Receipt and after redelivery by Petal to Customer at the

Point(s) of Delivery, and shall indemnify and hold Petal harmless from

any damage or injury caused thereby, except for damages and injuries

caused by the negligent acts or omissions of Petal when the gas is in

Petal's control and possession; and except for the damages and injuries

caused by the negligent acts or omissions of the pipeline; and except

for the damages or injuries resulting from Petal's failure to deliver

gas complying with the quality and pressure specifications of this

Tariff. Petal shall be in control and possession of the gas after the

receipt of the same for injection at the Point(s) of Receipt and until

redelivery by Petal to Customer at the Point(s) of Delivery, and shall

indemnify and hold Customer harmless from any damage or injury caused

thereby, except for damages and injuries caused by the negligent acts

and omissions of Customer and except for damages and injuries caused by

the negligent acts or omissions of the pipeline; and except for the

damages and injuries resulting from Customer's failure to deliver, or

cause to be delivered, gas complying with the quality specifications of

this Tariff. The risk of loss for all gas injected into, stored in and

withdrawn from storage shall remain with Customer, and Petal shall not

be liable to Customer for any loss of gas, except as may be occasioned

due to the intentional or grossly negligent acts or omissions by Petal.

11. MEASUREMENT

11.1 The unit of volume for measurement of all quantities of gas in terms of

Mcf's and Btu's delivered to and received from storage hereunder shall be

one (1) cubic foot of gas at a base temperature of sixty degrees

Fahrenheit (60 degrees F) and at an absolute pressure of (14.73) pounds

per square inch. All fundamental constants, observations, records, and

procedures involved in determining and/or verifying the quantity and

other characteristics of gas delivered hereunder shall, unless otherwise

specified herein, be in accordance with the standards prescribed in

Report No. 3 of the American Gas Association, as now and from time to

time amended or supplemented. All measurements of gas shall be

determined by calculation into terms of such unit. All quantities given

herein, unless expressly stated otherwise,