GENERAL TERMS AND CONDITIONS
                                  (Continued)
   
   
      1.17  "NAESB Standards" shall mean the standardized business
            practices, procedures and criteria which have been adopted and
            published by the North American Energy Standards Board and which
            have been adopted by reference by the Commission.
   
      1.18  The term "North American Energy Standards Board" or "NAESB"
            shall mean the private, consensus standards developer whose
            wholesale natural gas standards are developed by
            representatives from all segments of the natural gas industry.
   
      1.19  The term "OBA" shall mean a contract between two parties which
            specifies the procedures to manage operating variances at an
            interconnect.
   
      1.20  The term "Operator" shall mean a party that operates the
            facilities that interconnect with Sellers facilities.
   
      1.21  The term "Point of Injection/Withdrawal" shall mean the point of
            interconnection between Sellers Storage Facilities and third
            party transporters facilities located in Kalkaska County,
            Michigan.
   
      1.22  The term "Releasing Customer" shall mean any Customer releasing
            capacity under Section 8 of Rate Schedule FS.
   
      1.23  The term "Replacement Customer" shall mean any Customer to which
            capacity is released under Section 8 of Rate Schedule FS.
   
      1.24  The term "Seller" shall mean Blue Lake Gas Storage Company.
   
      1.25  The term "Sellers Injection Use" shall mean the applicable
            percentage stated on Sheet No. 5 of this Tariff multiplied by
            the quantity of Gas injected into Storage for the account of
            Customer.
   
      1.26  The term "Sellers Use" shall mean the sum of the Sellers
            Injection Use and the Sellers Withdrawal Use.
   
      1.27  The term "Sellers Withdrawal Use" shall mean the applicable
            percentage stated on Sheet No. 5 of this Tariff multiplied by
            the quantity of Gas withdrawn from Storage for the account of
            Customer.