Blue Lake Gas Storage Company

First Revised Volume No. 1

Effective Date: 11/01/2007, Docket: RP08- 17-000, Status: Effective

Second Revised Sheet No. 18 Second Revised Sheet No. 18 : Effective

Superseding: First Revised Sheet No. 18

RATE SCHEDULE FS

FIRM STORAGE

(Continued)

accordance with the provisions set forth in Section 8.2 of the

General Terms and Conditions of this Tariff. If such failure to

pay continues for thirty (30) Days after payment is due, and the

Replacement Customer has not disputed billings in accordance

with Section 8.2 of the General Terms and Conditions of this

Tariff, then Seller may, in addition to any other remedies it

may have hereunder, terminate its Agreement with the Replacement

Customer, and the Replacement Customer shall be deemed to have

consented to abandonment of service under the Agreement. If the

Agreement with the Replacement Customer is so terminated and

service abandoned, the capacity will revert to the Releasing

Customer, and will be governed by the terms and conditions of

its existing Agreement with Seller. If Releasing Customer pays

delinquent amounts owed by Replacement Customer and Seller

subsequently receives payment from Replacement Customer of some

or all of such amounts, Seller will credit the amounts received

from the Replacement Customer in Seller's next monthly bill to

the Releasing Customer.

8.4 MARKETING FEE. Seller may negotiate with Releasing Customer to

market all or a portion of the released capacity to potential

Replacement Customers who, as a result of such marketing

activity, bid for such capacity during the competitive bidding

procedure. If Seller contracts with a Replacement Customer

found by Seller, Seller shall be entitled to a marketing fee

which will be negotiated between Seller and Releasing Customer,

such marketing fee to be deducted monthly from credits due

Releasing Customer with respect to each Dth of capacity

purchased by the Replacement Customer. Each Replacement

Customer found by Seller shall submit with its bid a statement

attesting to Seller's marketing efforts in connection with such

Replacement Customer's decision to purchase released capacity.

Such statement shall constitute conclusive evidence of Seller's

proactive marketing effort entitling Seller to a marketing fee.

8.5 TERM. Any release under this Section 8 for service under Rate

Schedule FS shall be for a maximum term not longer than the

remaining term of the underlying FS Service Agreement. If

capacity is released and the Replacement Customer takes service

under Rate Schedule IS, the minimum term shall be one Month.