Petal Gas Storage Company

Original Volume No. 1

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

Third Revised Sheet No. 123 Third Revised Sheet No. 123 : Effective

Superseding: Second Revised Sheet No. 123

GENERAL TERMS AND CONDITIONS (Continued)

Replacement Customer; and (iii) Petal shall remit the remaining balance,

if any, or shall charge any balance due, to the Releasing Customer,

provided that the Releasing Customer is only liable to the extent of its

Capacity and Deliverability Charges. Petal is not obligated to the

Releasing Customer for any payments not received from the Replacement

Customer.

12.3 Payment. Customer shall pay Petal by wire transfer the undisputed

portion of the amount reflected on the invoice provided within fifteen

(15) days of its receipt of same. If the fifteenth (15th) day shall fall

upon a weekend or legal holiday, then such payment shall be made on the

first regular Business Day prior to such fifteenth (15th) day.

12.4 Billing Error. If an error is discovered in any billing, such error

shall be adjusted within 30 days of the determination thereof provided

that claim shall have been made within six months from the date of the

initial invoice, with a three-month rebuttal period, excluding

government-required rate changes. This standard shall not apply in the

case of deliberate omission or misrepresentation or mutual mistake of

fact. Parties' other statutory or contractual rights shall not otherwise

be diminished by this standard. If a dispute arises as to the amount

payable in any invoice rendered hereunder, Customer shall nevertheless

pay when due the amount not in dispute under such invoice.

Such payment shall not be deemed to be a waiver of the right by Customer

to recoup any overpayment, nor shall acceptance of any payment be deemed

to be a waiver by Petal of any underpayment. In the event Customer fails

to forward the entire undisputed amount due to Petal when same is due,

interest on the unpaid portion shall accrue at a rate equal to one

percent (1%) above the prime rate charged by Chase Manhattan Bank, N.A.,

New York, New York, from time to time, or the maximum legal rate,

whichever is the lesser, compounded daily from the date such payment is

due until the same is paid. If Customer's failure to pay the undisputed

portion of any invoice rendered hereunder continues beyond thirty (30)

days after the due date of such invoice, then Petal, in addition to all

other legal remedies available to it, shall have the right and option to

suspend further deliveries of gas until such default shall have been

cured. If Customer's failure to pay the undisputed portion of any

invoice rendered hereunder continues beyond sixty (60) days after the due

date of such invoice, then Petal, in addition to all other legal remedies

available to it, shall have the right and option to terminate service

hereunder.