Liberty Gas Storage, LLC

Original Volume No. 1

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Effective Date: 04/15/2007, Docket: RP07-357-000, Status: Effective

Original Sheet No. 121 Original Sheet No. 121 : Effective

 

GENERAL TERMS AND CONDITIONS

4.14 Liberty's Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (1) Liberty has given

notice of termination of the Releasing Customer's Storage Service Agreement

pursuant to Section 29 of Liberty's General Terms and Conditions and (2) the

reservation charge specified in the effective Addendum to the Replacement or

Prearranged Customer's Capacity Release Umbrella Agreement is less than the

level of the reservation charge which the Releasing Customer was obligated to

pay Liberty, then Liberty shall be entitled to terminate the Addendum, upon 30

days' written notice to the Replacement or Prearranged Customer, unless the

Replacement or Prearranged Customer agrees prior to the end of said 30-day

notice period to pay for the remainder of the term of the Addendum either (i)

the reservation and commodity charges at levels which the Releasing Customer

was obligated to pay Liberty, or (ii) such rate as mutually agreed by Liberty

and Replacement or Prearranged Customer. Customer may elect to pay the lesser

of the two foregoing options. Liberty's right to terminate the Addendum is

subject to Liberty providing written notice of termination to the Replacement

or Prearranged Customer within 30 days of the determination by Liberty that the

Releasing Customer no longer satisfies Liberty's credit requirements.

Termination of the Addendum shall not occur prior to termination of the

Releasing Customer's contract.

(b) In the event that a Customer has received 30 days' notice of

termination of the Addendum to Customer's Capacity Release Umbrella Agreement

pursuant to Section 4.13(a) above for storage service and there is Gas in

storage for Customer's account at the end of such 30-day period, the Addendum

shall continue in force and effect for the sole purpose of withdrawal of said

Gas by Customer until Customer's Storage Inventory is zero. Liberty shall

require Customer to withdraw each Day a quantity equal to the MDWQ, or such

other lesser quantity acceptable to Liberty. The requirement to withdraw

storage quantities shall be suspended on any Day to the extent that Liberty

cannot accommodate a nomination or withdraw such storage quantities on such

Day. Customer may also transfer title of Gas remaining in Customer's Storage

Inventory to another Customer pursuant to Section 20 of Liberty's General Terms

and Conditions. In the event Customer fails to withdraw its entire Storage

Inventory within the time required by this Section, Liberty shall auction any

remaining Storage Inventory and credit the proceeds of such sale to Customer,

net of withdrawal charges and fuel, if applicable. Customer shall indemnify

Liberty and hold it harmless from all costs, damages and liabilities arising

out of the failure of Customer to remove such Storage Inventory and the

disposal of such Storage Inventory by sale by Liberty. Liberty shall post such

quantities on the Internet Web Site on the fifth Business Day following the

fifteenth of the month. Liberty shall accept bids only during the time period

from 7:00 a.m. until ll:00 a.m. CCT on the seventh Business Day following the

fifteenth of the month. Prior to 4:00 p.m., CCT of the same Day, Liberty shall

notify the Customer submitting the highest bid. When the Gas is purchased at

auction, Customer purchasing the Gas must provide identification of the

existing Storage Service Agreement with Liberty under which Customer shall

store all such Gas purchased. Customer purchasing the Gas agrees to pay the

applicable storage rate on the Gas purchased beginning on the date the bid was

accepted at auction.