Bluewater Gas Storage, LLC

Original Volume No. 1

Effective Date: 04/01/2008, Docket: RP08-249-000, Status: Effective

Original Sheet No. 60 Original Sheet No. 60 : Pending

IB RATE SCHEDULE

INTERRUPTIBLE BALANCING SERVICE

(Continued)

(b) The storage of Gas in amounts up to Customer's

Interruptible balancing Maximum Storage Quantity, provided that

all Higher Priority Service storage and system needs have been

satisfied; and

of BLUEWATER's Gas (as loan Gas) or Customer's Gas up to

Customer's Maximum Daily Withdrawal Quantity ("MDWQ") per

Customer's nomination, provided that all Higher Priority Service

nominations for withdrawal and system needs have been satisfied,

and that Customer has a quantity of Gas stored in Interruptible

Storage Inventory or available under its Maximum Loan Quantity not

less than the quantity the Customer shall have nominated for

withdrawal on such Day.

To the extent Interruptible storage capacity or Gas 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 or repay all, or any portion of, the IB Gas quantities

held or loaned by BLUEWATER for the account of Customer, as

specified by BLUEWATER. If Customer fails to withdraw such IB

storage Gas, then BLUEWATER may take, free and clear of any

adverse claims, title to such IB Storage Inventory as Customer was

instructed to withdraw. If Customer fails to inject such IB

storage Gas, then BLUEWATER may purchase replacement Gas and

Customer shall pay BLUEWATER the cost of the replacement Gas,

which includes the actual cost of replacement supplies and any

costs or penalties incurred by BLUEWATER or its Customers as a

result of Customer's failure to deliver replacement Gas, plus all

other costs incurred by BLUEWATER to secure such replacement Gas,

including, but not limited to, third-party marketing fees,

transportation by third-party pipeline companies, and all other

costs for securing replacement Gas. 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 dispose

of such Gas by auction and shall credit the net proceeds received

from such auction in accordance with the provisions of Section 32

of the General Terms and Conditions of this FERC Gas Tariff.