GENERAL TERMS AND CONDITIONS
   
   
  1.  DEFINITIONS
   
      1.1   The term "Agreement" shall mean the Service Agreement executed
            by the Customer and Seller and any exhibits, attachments and/or
            amendments thereto.
   
      1.2   The term "Average Monthly Storage Volume" shall mean the sum of
            Customers Working Storage Gas at the end of each Day of the
            Month divided by number of Days in the Month.
   
      1.3   The term "BTU" shall mean one (1) British thermal unit, the
            amount of heat required to raise the temperature of one (1)
            pound of water one degree (1) Fahrenheit at sixty degrees (60)
            Fahrenheit.  (BTU is measured on a dry basis at 14.73 psia.)
   
      1.4   The term "Business Day" shall mean every Monday, Tuesday,
            Wednesday, Thursday or Friday, excluding all federal banking
            holidays for transactions in the United States and similar
            holidays for transactions in Canada and Mexico.
   
      1.5   The term "Central Clock Time" shall mean Central Standard Time
            except for that period when daylight savings is in effect. During
            this period, Central Clock Time shall mean Central Daylight Time.
   
      1.6   The term "Commission" and "FERC" shall mean the Federal Energy
            Regulatory Commission or any successor regulatory authority
            having jurisdiction.
   
      1.7   The term "Customer" shall mean any person, corporation,
            partnership or any other party that executes a valid Service
            Agreement with Blue Lake Gas Storage Company for the Storage of
            Gas under the terms and conditions of Sellers FERC Gas Tariff.
   
      1.8   The term "Daily Rate" shall mean the result of the calculation
            of multiplying the monthly rate by the number of Months in the
            rate period; dividing the result by the number of Days in the
            rate period; and taking the answer out to 5 decimal places and
            rounding up or down to the Transporters specific decimal place
            or by multiplying the Daily Rate times the number of Days in the
            rate period; dividing the result by the number of Months in the
            rate period; and taking the answer out to 5 decimal places and
            rounding up or down to the Transporters specific decimal place.