Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 07/06/2007, Docket: RP07-480-000, Status: Effective

First Revised Sheet No. 95 First Revised Sheet No. 95 : Effective

Superseding: Original Sheet No. 95

GENERAL TERMS AND CONDITIONS (Cont’d)

9.12 Balancing at Termination of Service Agreement.

(a) Following the termination of a Service Agreement,

Customer under that Service Agreement shall be required to correct any

outstanding HSCQ balance within 60 days after Seller determines, and

notifies Customer, that such a HSCQ balance exists, or within such

longer period of time agreed to by Customer and Seller. To the extent

that gas remains after such period, any such quantities automatically

shall be forfeited by Customer to Seller free and clear of all liens

and encumbrances. Seller shall post such forfeited quantities on its

EBB as gas available for sale to the highest bidder within a 24-hour

notice period. Such posting may provide as a condition of sale that

such gas be withdrawn from storage within a period of time to be

specified in the notice. Upon receipt of payment, Seller shall treat

the forfeited gas proceeds as Penalty Revenues as defined in Section

19.3 of the General Terms and Conditions.

(b) If Seller determines that it withdrew quantities to

or for Customer in excess of the quantities tendered to Seller by or

for Customer, Seller shall assess and collect from Customer a penalty.

Customer shall pay Seller a penalty for each Dth of such outstanding

HSCQ balance, grossed up for the Retainage applicable to Seller’s IHSS

Rate Schedule. The penalty shall be the sum of: (i) 120 percent of the

Spot Market Price for the month during which such quantities are made

up by Seller; plus (ii) the cost of transporting such quantities at the

total effective maximum rate under Columbia’s ITS Rate Schedule. "Spot

Market Price", for purposes of this Section, shall mean, for the

applicable month, the contract index price last published during the

applicable month for gas delivered to Columbia, as reported in Natural

Gas Intelligence or successor publication. For purposes of calculating

Penalty Revenues pursuant to Section 19.3 of the General Terms and

Conditions, 100 percent of the Spot Market Price times the applicable

number of replenishment dekatherms plus the cost of transporting such

quantities shall be retained by Seller. 20 percent of the Spot Market

Price times the applicable number of replenishment dekatherms shall be

treated as Penalty Revenues as defined in Section 19.3 of the General

Terms and Conditions. Upon payment of such charge, the HSCQ balance

shall be removed from Customer's account.