Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective

Original Sheet No. 62 Original Sheet No. 62 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

4.2 Auctions of Capacity that Becomes Available. As capacity becomes

available on Seller's system for firm storage service under the

circumstances set forth in Section 4.1 above or otherwise, such capacity

shall be made available for bidding provided that it is not previously

committed and capacity remains available.

(a) EBB Posting Procedure. Capacity that becomes or will become

available will be posted by Seller on its EBB for at least the following

periods:

(1) five business days for firm capacity that will be available

for a term of twelve months or longer;

(2) three business days for firm capacity that will be available

for a term of at least five but less than twelve months; and

(3) one hour ending at 10:00 a.m. (E.T.) for firm capacity that

will be available for a term of less than five months.

Seller's posting shall include the following information regarding the

available capacity: (i) the daily and other applicable quantity of service

available; (ii) the Recourse Rate as set forth in this Tariff; (iii) any

applicable restrictions; (iv) whether the capacity is subject to an existing

right of first refusal; (v) any minimum price or other terms applicable to

the capacity; and (vi) the date when bids are due to Seller. The due date set

by Seller for bids shall be in accordance with the posting periods set forth

above in this Section 4.2(a).

(b) Bidding Procedure. A potential Customer may submit multiple bids,

each higher than its preceding bid, for all or any portion of the capacity or

term of service made available by Seller. Such bids shall be submitted

electronically through Seller's EBB and shall be displayed by Seller on the

EBB, without revealing the identity of the bidder, during the bidding period.

Bidder shall specify the monthly reservation charge (or other firm or demand

charge(s), if applicable, herein referred to collectively as Reservation

Charge) it is bidding for the service. Bidder also shall provide to Seller a

valid request for service fully complying with Section 3 (Requests for

Service) of the General Terms and Conditions. The price bid for the monthly

Reservation Charge shall be expressed per Dth and shall be expressed to the

nearest thousandth of one dollar ($0.000). The bid shall not exceed the

then-effective Maximum Base Reservation Charge for the applicable service set

forth in this Tariff. In addition to the bid price, Bidder shall pay all

applicable commodity charges, demand and commodity surcharges and any other

applicable charges, as they may be adjusted from time to time by Seller.

Seller shall have the right to reject any bids that: (i) are for a rate that

is less than the minimum rate stated in Seller's posting of that capacity;

(ii) do not satisfy any of the other terms specified in the posting; or

(iii) include conditions or provisions that Seller determines, in its

reasonable discretion, to be unacceptable.