GENERAL TERMS AND CONDITIONS
                                   (continued)
35.     OPERATIONAL SALES
Liberty may sell gas from time to time to which it has retained or taken title
pursuant to the provisions of this Tariff and which is in excess of 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/or
(iv) to perform other operational functions in connection with the storage and
other services provided by Liberty under this Tariff.  Further, such
operational sales shall be afforded the lowest service priority as established
the General Terms and Conditions of this tariff. In its semi-annual report
filed pursuant to Section 284.13 of the Commission s regulations, Liberty
shall provide an explanation of the reasons for any operational sales, a
description of such sales (consisting of date of each sale, the quantity
and the price), and an explanation of how such sales are for operational
purposes, are limited in volume and duration, and are incidental to its
primary storage services. Prior to each operational sale of gas, Liberty
shall post the following information on its Internet Web Site: (a) the
quantity of gas to be sold; (b) any minimum quantity for bidding; (c) the
date and time when all bids shall be due; (d) the date(s) when the gas will
be purchased or sold; (e) any minimum or maximum daily quantity to be purchased
or sold; (f) the point where the gas will be purchased or sold; and (g) the
criteria to be used by Liberty in evaluating and selecting bids.