Common use of Georgia and Florida Clause in Contracts

Georgia and Florida. Atlanta Gas Light Company (“AGLC”) is required to investigate possible environmental contamination at manufactured gas plants (“MGP”) and, if necessary, clean up any contamination. AGLC has been associated with teneleven MGP sites in Georgia and three in Florida. One new former MGP site has been recently identified adjacent to an existing MGP remediation site. Based on investigations to date, cleanup has either already occurred or is likely at most of these sites. As of June 30, 2010,December 31, 2011, the remediation program in Georgia was approximately 100% complete, except for a few remaining areas of recently discovered impact, although ground water remediation continues. Investigation is concluded for one phase of the Orlando, Florida site; however, the Environmental Protection Agency has not approved the clean upcleanup plans. For elements of the Georgia and Florida sites where we still cannot provide engineering cost estimates, considerable variability remains in future cost estimates. As reported in Holdings AnnualGuarantor’s Quarterly Report on Form 10-KQ for 2009,the quarter ending March 31, 2012, the projected costs of the remaining remediation at these sites are estimated to be $6442-11398 million.