Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 03/06/2007, Docket: RP07-167-002, Status: Effective

Sec. Sub. Second Revised Sheet No. 140 Sec. Sub. Second Revised Sheet No. 140 : Effective

Superseding: Second Revised Sheet No. 140






28. Off-System Capacity


From time to time, Petal may enter into transportation and/or storage

agreements and/or other approved types of services (such as Park and

Loan) with other interstate and intrastate pipeline and storage companies

or other third party providers of such services ("off-system capacity").

In the event that Petal acquires off-system capacity, Petal will use such

capacity for operational reasons or to render service for its Customers.

In the event that Petal uses off-system capacity to render service for

its Customers, it will only render service to Customers on the acquired

off-system capacity pursuant to Petal's FERC Gas Tariff and subject to

Petal's approved rates, as such tariff and rates may change from time to

time. For purposes of transactions entered into subject to this Section

28, the "shipper must have title" requirement is waived.


29. Operational Sales


29.1 Petal may sell gas from time to time to which it has retained or taken

title pursuant to the provisions of the Tariff and which is excess to its

operational requirements. Such operational sales may be made to the extent

necessary: (i) to maintain cavern pressure; (ii) to balance fuel

quantities under storage agreements; (iii) to manage storage imbalance

quantities, and (iv) to perform other operational functions in connection

with the storage services provided by Petal under the Tariff.


29.2 Operational Sales shall be subject to the Section 4.1 priority of service

provisions of the General Terms and Conditions and shall be afforded the

lowest service priority.


29.3 Petal will include in its semi-annual storage reports, filed pursuant to

Section 284.13(e) of the FERC's regulations, the source of the operational

quantities sold, the date of such sales, the quantities, the sales price,

the revenues from such operational sales, the reasons for the operational

sales, and support that the sales are limited and incidental to the

primary storage services Petal provides.


29.4 Petal will post its operational sales on its Internet website or

alternatively will utilize a third party electronic bulletin board(s).

Petal's posting on its Internet website shall include at a minimum; (1)

the level of daily quantities and whether such sales quantities shall be

made on a firm or interruptible basis; (2) the requested effective date

and term of the sale; (3) the points of delivery of gas; (4) any

additional information as may be required by Petal. Petal will request

prospective bidders to place a bid on its Internet website or in writing

(via fax or email), with such bid(s) containing the following information:

(1) bidder's legal name and the name, title, address and phone number of

the individual authorized to purchase gas; (2) bidder's price; (3)

completed bid form addressing all criteria requested by Petal in its

posting; and (4) any conditions on the prospective bidder's offer to

purchase gas. Petal shall evaluate bids and shall award such sale of gas

to the prospective bidder with the highest bid that otherwise matches all

terms and conditions requested by Petal in its posting. Petal reserves

the right, in its sole discretion, (1) to withdrawal its postings; (2)

reject all bids due to operational changes; and (3) reject any bids which

are not complete, which contain modifications to terms of the postings or

which contain terms that are operationally unacceptable.