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. 151 Original Sheet No. 151 : Effective

 

GENERAL TERMS AND CONDITIONS

29. DEFAULT AND TERMINATION

29.1 Customer shall be in default under this FERC Gas Tariff or the Storage

Service Agreement if:

(a) Customer shall fail to pay any sums due to Liberty hereunder and such

failure continues for a period of five (5) Business Days after written notice

to Customer by Liberty;

(b) Customer fails to perform any of its material covenants or obligations

under this FERC Gas Tariff or the Storage Service Agreement, other than

obligations to make payments to Liberty, and Customer does not remedy such

failure within a period of thirty (30) days after receipt of a notice from

Liberty and indemnify and hold harmless Liberty from and against any losses

resulting from such failure;

(c) Customer or its guarantor becomes insolvent, as set forth in Section

3.4(i); or

(d) A Material Adverse Change, as defined in Section 32.3, shall have

occurred and

Customer fails to provide Financial Assurances pursuant to Section 32.

29.2 In the event of any Default by Customer, in addition to all other

remedies available to it pursuant to the Storage Service Agreements or at law

and in equity, Liberty may do any or all of the following:

remedies available to it pursuant to the Storage Service Agreements or at law

and in equity, Liberty may do any or all of the following:

(a) refuse to accept any further deliveries of Gas from or on behalf of

Customer pursuant to all or any transactions;

(a) refuse to accept any further deliveries of Gas from or on behalf of

Customer pursuant to all or any transactions;

(b) refuse to deliver Gas to or on behalf of Customer pursuant to all or

any transactions;

(c) set off any amount owing by Liberty to Customer pursuant to any

transaction(s) against amounts otherwise owing by Customer to Liberty pursuant

to any other transaction(s);

(d) suspend performance until Customer corrects the default in full; and

(e) terminate the Customer's Storage Service Agreement, provided that

Liberty shall provide not less than thirty (30) days notice of such termination

to the Customer and to FERC.

29.3 In the event Liberty shall have suspended service pursuant to Section

29.2, Customer may cause Liberty to resume or continue service by providing an

advance payment equal to one Month's charges for service under the Customer's

Storage Service Agreement(s) and providing Financial Assurances pursuant to

Section 32 of these General Terms and Conditions within thirty (30) days of

Liberty's notice of suspension. Liberty shall not charge Customer for services

during any period of suspension pursuant to Section 29.2.