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. 105 Original Sheet No. 105 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3. REQUEST FOR SERVICE

3.1 Procedures for Sale of Capacity.

(a) Sale of Capacity. Upon the availability of new

storage capacity resulting from an expansion of BLUEWATER's

facilities, BLUEWATER shall sell such capacity to prospective

Customers either via the open season procedures described in

Sections 3.1(b)-(f) below or via the first-come, first-served

procedures described in Section 3.1(g) below, with the selection of

the procedures being at BLUEWATER's sole option. This Section 3.1

shall apply to sales of capacity under Rate Schedules FSS, NNSS, FP

and FL.

(b) Notice of open season. If BLUEWATER elects to

conduct an open season pursuant to Section 3.1(b) above, BLUEWATER

shall post notice of the open season on its Internet Web Site. Such

notice shall set forth when the open season begins and ends, the

type of service being offered, how and where interested parties may

submit requests for service, the criteria that will be used to

evaluate bids ("Bid Evaluation Procedures"), and additional details

about the open season.

(c) Duration. An open season held pursuant to Section

3.1(b) above shall be held for a period of not less than five (5)

Business Days. During this time, BLUEWATER will accept bids from

potential Customers for the service identified in the notice of the

open season.

(d) At the conclusion of the open season, the value of

each submitted bid will be determined according to the Bid

Evaluation Procedures. BLUEWATER reserves the right to reject any

bid which (i) may detrimentally impact the operational integrity of

BLUEWATER's facility, (ii) yields an economic value that is

unacceptable to BLUEWATER, (iii) does not satisfy all of the terms

of a specific open season, (iv) does not contain all of the required

information specified in the notice of the open season, (v) contains

terms and conditions other than those contained in BLUEWATER's FERC

Gas Tariff, and/or (vi) does not meet BLUEWATER's creditworthiness

requirements set forth in Section 3.3 of these General Terms and

Conditions. If BLUEWATER rejects any request for available capacity

posted pursuant to this Section 3.1(d), BLUEWATER will notify the

potential Customer that submitted the rejected bid of the reason(s)

for such rejection via e-mail.

(e) During the allocation process at the conclusion of an

open season, storage capacity will be allocated to the acceptable

bid(s) in accordance with the Bid Evaluation Procedures.