Petal Gas Storage Company

Original Volume No. 1

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

Third Revised Sheet No. 127 Third Revised Sheet No. 127 : Effective

Superseding: Second Revised Sheet No. 127

GENERAL TERMS AND CONDITIONS (Continued)

Payments Shall Be Made By Wire Transfer To:

Petal Gas Storage, L.L.C.

Credit Petal Gas Storage, L.L.C.

Account No. 552880092939

Shreveport, Louisiana

ASA No. 065400137

Statements:

Petal Gas Storage, L.L.C.

229 Milam Street

P.O. Box 21101

Shreveport, Louisiana 71120

Any notice initially delivered by fax shall be confirmed by regular mail within

one (1) week after transmission of the fax.

17. FUEL REIMBURSEMENT

17.1 Categories of Fuel Usage. The two general categories of fuel usage are:

(1) Direct Fuel Usage, consisting of (a) compression fuel, including

electric power associated with compression, (b) dehydration fuel, and

(c) line heating fuel; and (2) Indirect Fuel Usage, which shall include

lost and unaccounted for volumes.

17.2 Fuel Reimbursement Adjustment Calculation. The amount charged for Fuel

Reimbursement shall reflect the actual fuel used. The results of all

calculations shall be rounded to the nearest dekatherm or kilowatt

hour. Natural gas included in the Fuel Reimbursement Calculation shall

be paid in kind to Petal. The charge for electric power included in

the Fuel Reimbursement Calculation shall be set forth as a separate

line item in the monthly invoice from Petal to Customer, and shall

include all charges for electric power associated with compression.

Petal shall use reasonable efforts to minimize fuel usage.