Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 01/01/2003, Docket: RP01-243-000, Status: Effective

First Revised Sheet No. 53 First Revised Sheet No. 53 : Effective

Superseding: Original Sheet No. 53










11.1 Definition of Force Majeure and Operating Conditions (Continued)


Such causes or contingencies affecting the performance by either party, however, shall

not relieve it of liability unless such party shall give notice and full particulars

of such cause or contingency in writing, facsimile, telephone or through electronic

means to the other party within a reasonable time after the occurrence relied upon,

nor shall such causes or contingencies affecting the performance by either party

relieve it of liability in the event of its failure to use due diligence to remedy the

situation and remove the cause with all reasonable dispatch, provided that the

resolution of strikes, lockouts or other labor disputes shall be within the sole

discretion of the party involved therein. Such causes or contingencies affecting the

performance of either party shall not relieve Customer from (i) its obligation to make

payments of daily demand charges except to the extent that such causes or

contingencies are caused by Pine Needle's negligence or willful misconduct, and (ii)

its obligation to make payment of amounts accrued and due at the time thereof.


11.2 Daily Interruption or Allocation of Services Due to Force Majeure or Unscheduled

Operating Conditions


(a) If, due to force majeure or unscheduled operating conditions, Pine Needle is

unable to receive, liquefy, vaporize or redeliver gas tendered by Customers for

firm contract storage service, then Pine Needle, shall order reduction of service

in accordance with the following provisions:


(i) In cases where Pine Needle's ability to provide service under Rate Schedule

LNG-2 is affected, Pine Needle shall first order interruption or allocation

of service on a last-come-first-interrupted basis.


(ii) After interruption or allocation of services as specified in 11.2(a)(i)

above, Pine Needle shall order reduction of Customers' firm contract

storage, liquefaction and/or vaporization entitlements on a pro rata basis

based on firm contract entitlements.