Bluewater Gas Storage, LLC

Original Volume No. 1

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Effective Date: 12/01/2006, Docket: CP06-351-001, Status: Effective

Original Sheet No. 42 Original Sheet No. 42 : Effective

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

(Continued)

(b) The storage of Gas in amounts up to the Interruptible

Maximum Storage Quantity, as stated in Customer's executed

Interruptible Hourly Balancing Service Agreement, provided that all

Firm Storage Service requests to utilize Storage Inventory have been

satisfied;

(c) The withdrawal from storage on any Day of Customer's

Gas per Customer's nomination up to the Maximum Daily Withdrawal

Quantity ("MDWQ") as stated in Customer's executed Interruptible

Hourly Balancing Service Agreement and the delivery of such Gas to

the Point(s) of Delivery, provided that all Firm Storage Service

nominations for withdrawal have been satisfied and Customer has a

quantity of Gas in Customer's Interruptible Storage Inventory not

less than the quantity Customer shall have nominated for withdrawal

on such Day; and

(d) For each hour during a Day, subject to the maximum

hourly limit as set forth in Customer's Interruptible Hourly

Balancing Service Agreement, the receipt or delivery by BLUEWATER at

the Point(s) of Receipt/Delivery designated by Customer of hourly

balancing quantities of Gas which shall be the difference, on an

hourly basis, between (i) the injections to or withdrawals from

BLUEWATER's storage of Gas as nominated by Customer to meet

Customer's desired hourly pattern of deliveries at its delivery

point(s) on the Transporter's(s') pipeline system(s) and (ii)

Customer's ratable flow quantities on BLUEWATER's system (1/24 of

Daily nominated quantities); provided that all Firm Storage Service

nominations have been satisfied and that hourly balancing quantities

shall not cause Customer's Interruptible Storage Inventory to exceed

the Maximum Storage Quantity set forth in Customer's Interruptible

Hourly Balancing Service Agreement or to be less than zero (0).

2.2 Hourly balancing quantities must be nominated and

scheduled pursuant to this Rate Schedule and Section 8 of the

General Terms and Conditions of this FERC Gas Tariff. In addition

to the day-ahead and intraday nominations provided for in Section 8

of the General Terms and Conditions, Customer shall be permitted to

submit nominations for hourly balancing quantities, and to adjust

its hourly balancing quantity nominations within a Day by providing

not less than one hour notice to BLUEWATER before the start of an

hour for which Customer requests to change a nomination, provided

that such hourly nominations, including changes in hourly

nominations, are subject to confirmation with the transporting

pipeline. Interruptible Hourly Balancing Service is not intended to

serve as an Operational Balancing Agreement to account for hourly

deviations between scheduled volumes and volumes actually taken by

Customer at its point(s) of delivery on the transporting

pipeline(s). Such deviations shall be subject to reconciliation

pursuant to the Customer's transportation agreement(s) with its

pipeline Transporter(s) and the pipeline Transporter's(s')

tariff(s).