Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 86 Original Sheet No. 86 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

7.2 Storage Injection. For nominations for which Seller’s storage is the

point of delivery, Seller shall allocate capacity sequentially among the

Rate Schedule priority groupings set forth below, and within those Rate

Schedule priority groupings, in the manner set forth below:

(a) Rate Schedule HSS. Among Customers requesting deliveries into

storage under the HSS Rate Schedule, Seller shall allocate capacity on a

pro rata basis based upon each such Customer’s respective level of HMDIQ.

(b) Rate Schedule IHSS and Overrun Quantities Under Rate Schedule

HSS. When Customers seek to inject quantities into storage either under

the IHSS Rate Schedule or in excess of their Maximum Daily Injection

Quantity under the HSS Rate Schedule, Seller shall allocate capacity first

on the basis of the highest rate being paid for that capacity, and then

among Customers paying the same rate, pro rata based on those Customers'

nominated delivery quantities.

7.3 Allocations Based on Value. For purposes of allocating capacity

pursuant to Sections 7.1(c) and 7.2(b), Customers paying more than the

Recourse Rate will be considered to be paying the Recourse Rate.