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. 155 Original Sheet No. 155 : Effective

GENERAL TERMS AND CONDITIONS

33. DISPOSITION OF RETAINED QUANTITIES

In the event that Liberty holds an auction for Gas quantities retained pursuant

to Section 9 of Rate Schedule FSS, Sections 2 and 9 of Rate Schedule SFS,

Sections 2 and 8 of Rate Schedule IP and Sections 2 and 8 of Rate Schedule IB,

Liberty shall post such quantities on the Internet Web Site on the fifth

Business Day following the fifteenth day of a month. Liberty shall accept

bids only during the time period from 7:00 a.m. until 11:00 a.m. CCT on the

seventh Business Day following the fifteenth of the month. Liberty shall

award the Gas to the Customer submitting the highest bid, and shall notify the

Customer submitting the highest bid prior to 4:00 p.m. CCT of the same Day on

which Liberty accepts bids; provided, however, Liberty reserves the right to

reject all bids. When the Gas is purchased at auction, Customer must provide

identification of the existing Storage Service Agreement with Liberty under

which Customer shall store the Gas in Liberty's facilities.

Liberty shall credit the net proceeds received from such auction to all

Customers that did not have Gas sold during the subject auction (“Qualifying

Customer”) based on the ratio of the total charges paid by each Qualifying

Customer for service to the total amount of such charges paid by all Qualifying

Customers during the Month in which the auction of Gas occurred. For the

purposes of this Section, the term “net proceeds” shall mean the total proceeds

received from the auction less the accumulated charges pursuant to the

applicable Rate Schedule for the Storage Service Agreement held by the Customer

winning the bid.

Such credits shall be calculated for each Month of the twelve (12) Month period

ending July 31 of each year and will be included on the Qualifying Customers'

invoices for the Month following the date of the final Commission order

approving Liberty's penalty disbursement report; provided, however, that

Liberty will calculate and include such credits on Qualifying Customers'

invoices for a period shorter than twelve (12) Months in the event and to the

extent that the total accumulated amount of auction collected pursuant to this

Section 33 by Liberty as of the end of any Month exceeds $1,000,000. Liberty

will file a penalty disbursement report within sixty (60) days of July 31 or

sixty (60) days after the end of the Month in which the revenue collected

exceeds $1,000,000. Any net proceeds credited to Qualifying Customers pursuant

to this Section shall include interest calculated in accordance with Section

154.501(d) of the Commission's regulations.

34. CONFIDENTIALITY

The contents of all transactions entered into by the Parties shall be kept

confidential by each, except to the extent that any information must be

disclosed to a third party as required by law, for either party's financial

needs, or for the purpose of effectuating the transaction. Notwithstanding

this section, Liberty may elect to release such information when required by

law, or when directed by a regulatory agency having jurisdiction, including any

such directives to file to meet informational reporting requirements

established by the Commission of any or all of the details concerning the

provision of service to the Customer, including without limitation, the details

of any transaction entered into between Liberty and Customer. Liberty shall

take all reasonable steps to ensure that such regulatory agency treat

Customer's information as commercially sensitive and confidential.

OPERATIONAL SALES

Liberty may sell gas from time to time to which it has retained or taken title

pursuant to the provisions of this Tariff and which is in excess of its

operational requirements. Such operational sales may be made to the extent

necessary: (i) to maintain cavern pressure; (ii) to balance fuel quantities

under storage agreements; (iii) to manage storage imbalance quantities; and/or

(iv) to perform other operational functions in connection with the storage and

other services provided by Liberty under this Tariff. Further, such

operational sales shall be afforded the lowest service priority as established

the General Terms and Conditions of this tariff.