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. 43 Original Sheet No. 43 : Effective

IHBS RATE SCHEDULE

INTERRUPTIBLE HOURLY BALANCING SERVICE

(Continued)

2.3 In the event Customer desires to use Interruptible

balancing service for balancing at more than one delivery point on

Transporters' pipeline systems under its Interruptible Hourly

Balancing Service Agreement, hourly balancing quantities for each

such delivery point shall be separately determined, nominated and

used for purposes of billing Hourly Balancing Charges.

2.4 To the extent Interruptible storage capacity which is

being utilized by an Interruptible Customer hereunder is needed by

BLUEWATER in order to satisfy BLUEWATER's obligations to Firm

Storage Service Customers, BLUEWATER shall require Customer to

withdraw all, or any portion of, the IHBS Gas quantities held in

storage by BLUEWATER for the account of Customer as specified by

BLUEWATER. Unless BLUEWATER otherwise agrees, Customer shall be

required to make ratable withdrawals. If Customer fails to withdraw

such IHBS Gas from storage, BLUEWATER may take, free and clear of

any adverse claims, title to such IHBS Storage Inventory as Customer

was instructed to withdraw. BLUEWATER's notice to Customer may be

given orally, but shall be confirmed in writing via e-mail or

facsimile to the Customer.

In the event that BLUEWATER retains and takes title to any of

Customer's Gas pursuant to this Section, BLUEWATER shall credit the

value of such Gas, net of any costs incurred by BLUEWATER to take

title to and/or resell such Gas, in accordance with the provisions

of Section 32 of the General Terms and Conditions of this FERC Gas

Tariff.

In the event BLUEWATER needs to require Customer to withdraw its

Gas from storage pursuant to this Section, BLUEWATER shall provide

day-ahead notice to Customer that it must withdraw Gas at its MDWQ

during the next Gas Day. BLUEWATER shall repeat this notice on a

daily basis until all of Customer's Gas is withdrawn from storage or

until the circumstances necessitating interruption are alleviated.

In the event Customer makes a timely nomination in response to a

notification by BLUEWATER pursuant to this paragraph, Customer's

obligation to comply with that notification shall be tolled until

such time as Bluewater's operational conditions allow Bluewater to

schedule the nomination.

3. RATES AND CHARGES

Customer shall pay rates and charges for Interruptible hourly

balancing service under this Rate Schedule including the applicable

storage rate components set forth in the IHBS Rate Statement and as

described below:

(a) Hourly Balancing Charge. A usage charge for each Dth

of hourly balancing quantities injected to or withdrawn from storage

for Customer's account pursuant to Section 2.1(d) of this Rate

Schedule.

(b) Storage Inventory Charge. A usage charge for each

Dth of Gas in Customer's Storage Inventory pursuant to Section

2.1(b) of this Rate Schedule at the end of each Day, for each Day

during a given Month.