Petal Gas Storage, L. L. C.

Original Volume No. 1

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Effective Date: 05/01/2002, Docket: RP02-188-000, Status: Effective

Original Sheet No. 68 Original Sheet No. 68 : Effective







Customer's FTS Agreement. The Replacement Customer must contract for

the Primary Receipt and Delivery Point(s) specifically set forth in a

Releasing Customer's FTS Agreement, or a segmented portion of the

capacity covered thereby pursuant to Section 25 of the General Terms

and Conditions of this Tariff. A Replacement Customer with firm

capacity may re-release firm capacity on the same basis, and under the

same terms, as apply to the original FTS Customer. There is no limit

on the number of times the same firm capacity may be released.


4.2 Obligations of Customers For Payment of Charges


(a) A Customer (including a Replacement Customer), who releases its

right to capacity on any basis for a period less than the

remaining term of the original Customer's FTS Agreement, remains

responsible for compliance with all terms and conditions of such

Agreement, which shall remain in effect, and for payment to

Petal of the amount of any Reservation Charge not paid by the

Replacement Customer. A Customer (including a Replacement

Customer) who releases its right to capacity for the full

remaining term of the original Customer's FTS Agreement, shall

be released from its obligations under such Agreement subject to

the following conditions: First, upon obtaining the consent of

Petal, which consent shall not be unreasonably withheld, and

second, upon receiving the approval of Petal's lenders/note



(b) The Replacement Customer shall pay a Reservation Rate and a

Usage Rate for use of released capacity. A Replacement

Customer will be billed by Petal and shall make payments to

Petal in accordance with the terms of the FTS Agreement. For

capacity releases other than a permanent release, Petal shall

bill the Releasing Customer its reservation charge reflecting

a credit of the reservation charge billed to the Replacement

Customer. The Releasing Customer will receive credit for all

revenue generated by a Replacement Customer's payment of

reservation charges for the released capacity. In the event

the Releasing Customer receives transportation service at a

discounted rate that is less than the rate paid by the

Replacement Customer, the Releasing Customer, at its option,

will be entitled to receive an additional credit or a refund

of the difference. Notwithstanding the above, the Releasing

Customer shall remain liable for the reservation charge and

Petal will bill the Releasing Customer for any reservation

charges not paid by the Replacement Customer and any

associated interest on late payments during the next billing

cycle. The Replacement Customer shall be obligated to pay

Petal the Usage Rate negotiated between the Releasing Customer

and Replacement Customer, all associated volumetric surcharges

applicable to the quantities Petal transports