Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 88 Original Sheet No. 88 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

8. METER ALLOCATIONS

This Section specifies the procedures for allocating any differences

between the aggregate of all Customers' Scheduled Daily Quantities and

actual measured quantities (Difference(s)). Unless otherwise agreed to

between Seller and Confirming Party, physically measured quantities shall be

allocated on scheduled daily quantities and shall be made using dekatherm

units.

8.1 Predetermined Allocation Method (PDA)

(a) If an OBA is not in effect at a receipt or delivery point, and

all Customers cannot agree upon an allocation methodology, "pro rata based

upon confirmed nominations" shall be used as the default PDA method.

(b) Seller may negotiate and enter into OBAs with interstate

pipelines, intrastate pipelines and other entities, including an OBA in the

form included in this Tariff. No Difference balanced in-kind shall be

allocated to any Customer at the receipt or delivery points covered by the

OBA. If an interstate pipeline charges Seller for Differences in the OBA,

however characterized, Seller shall charge such interstate pipeline an

equivalent and offsetting charge. If Seller is unable to charge or collect

such equivalent and offsetting charges for such Differences, Seller, on an

as-billed basis, shall allocate and bill such charges to Customers

responsible for the imbalance at the point of interconnection at which the

Difference giving rise to the charges occurred.

necessary.

(d) Changes to a PDA may be made prospectively during the month.

Only one PDA may be submitted per allocation period. Seller may in its

reasonable discretion make retroactive reallocations of transactions to

correct for errors. Otherwise, no retroactive reallocations of any

transactions shall be permitted without the approval of Seller and the

agreement of those Customers with Service Agreements affected by such

retroactive reallocations, provided that the agreement by such affected

Customers shall not be unreasonably withheld.

(e) PDAs shall remain in effect until a replacement PDA is received

from the Interconnecting Operator or upstream title holder; provided,

however, PDAs shall be updated at the beginning of each month. A new

allocation detail may be needed when a nomination changes.

(f) If the PDA is provided using EDI, Seller shall respond with an

EDI confirmation indicating receipt of the PDA within 15 minutes, and

whether there are any errors associated with the PDA.