Petal Gas Storage, L. L. C.

Original Volume No. 1

Effective: 05/01/2002

Second Revised Sheet No. 121 Second Revised Sheet No. 121 : Effective

Superseding: First Revised Sheet No. 121

GENERAL TERMS AND CONDITIONS (Continued)

its successors and assigns, that the gas it delivers hereunder shall be

free and clear of all liens, encumbrances, or claims whatsoever; and that

it will indemnify Petal and save it harmless from all claims, suits,

actions, damages, costs and expenses arising directly or indirectly from

or with respect to the title to gas tendered to Petal hereunder.

12.2 As between Customer and Petal: Customer shall be in control and

possession of the gas prior to delivery to Petal for injection at the

Point(s) of Receipt and after redelivery by Petal to Customer at the

Point(s) of Delivery, and shall indemnify and hold Petal harmless from

any damage or injury caused thereby, except for damages and injuries

caused by the negligent acts or omissions of Petal when the gas is in

Petal's control and possession; and except for the damages and injuries

resulting from Petal's failure to deliver gas complying with the quality

and pressure specifications of this Tariff. Petal shall be in control

and possession of the gas after the receipt of the same for injection at

the Point(s) of Receipt and until redelivery by Petal to Customer at the

Point(s) of Delivery, and shall indemnify and hold Customer harmless from

any damage or injury caused thereby, except for damages and injuries

caused by the negligent acts or omissions of Customer; and except for the

damages and injuries resulting from Customer's failure to deliver, or

cause to be delivered, gas complying with the quality and pressure

specifications of this Tariff. The risk of loss for all gas injected

into, stored in and withdrawn from storage, or transported, shall remain

with Customer, and Petal shall not be liable to Customer for any loss of

gas, except as may be occasioned due to the intentional or grossly

negligent acts or omissions by Petal.

13. MEASUREMENT

13.1 The unit of volume for measurement of all quantities of gas in terms of

Mcf's and Btu's transported or delivered to and received from storage

hereunder shall be one (1) cubic foot of gas at a base temperature of

sixty degrees Fahrenheit (60 degrees F) and at an absolute pressure of

(14.73) pounds per square inch. All fundamental constants, observations,

records, and procedures involved in determining and/or verifying the

quantity and other characteristics of gas delivered hereunder shall,

unless otherwise specified herein, be in accordance with the standards

prescribed in Report No. 3 of the American Gas Association, as now and

from time to time amended or supplemented. All measurements of gas shall

be determined by calculation into terms of such unit. All quantities

given herein, unless expressly stated otherwise,