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. 132 Original Sheet No. 132 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(f) Action Alerts: In the event that BLUEWATER

determines that due to (1) an ongoing or anticipated weather event,

(2) a known equipment problem, or (3) the anticipated continuation

of a current system operational problem, action is necessary to

avoid a situation in which the system integrity is jeopardized or

BLUEWATER's ability to render firm service is threatened, BLUEWATER

may issue an Action Alert as set out herein to forestall the

development of the situation.

(1) Issuance of Alerts: Action Alerts will be noticed in

accord with the procedures set forth in Section 5.5(e) and

BLUEWATER will endeavor to provide a minimum of four hours

notice.

(2) Action Alerts can be issued to effect any of the

following:

(A) restriction of Interruptible services;

(B) restrictions of deliveries or receipts at

specific Point(s) of Receipt or Point(s) of Delivery

covered by an operational balancing agreement to the

aggregate MDRQ or MDDQ under the Storage Service

Agreements for Firm Storage Services whose Primary

Point(s) of Delivery/Receipt, which are specified in

the Storage Service Agreement, are at the affected

locations; and/or

(C) forced balancing such that point operators will

be required to assure that nominations equal flows or

that receipts and deliveries fall within the

tolerance level designated in the Action Alert.

(g) OFOs: In the event that, in BLUEWATER's judgment,

immediate action is required to alleviate conditions which threaten

to impair reliable firm service, to maintain operations at the

pressures required to provide efficient and reliable service, to

have adequate Gas supplies in the system to deliver on demand, to

maintain services to all firm Customers and for all firm services,

and/or to maintain the system in balance for the foregoing purposes,

BLUEWATER may forgo the action described in Section 5.5(f) and

immediately issue an OFO. In the event that (l) Customer or point

operator does not respond to an Action Alert, (2) the actions taken

thereunder are insufficient to correct the system problem for which

the Action Alert was issued, or (3) there is insufficient time to

carry out the procedures with respect to Action Alerts, BLUEWATER

may issue an OFO pursuant to this Section 5.5(g) or take unilateral

action, including the curtailment of firm service, to maintain the

operational integrity of BLUEWATER's system. For purposes of this

Section, the operational integrity of BLUEWATER's system shall

encompass the integrity of the physical system and the preservation

of physical assets and their performance, the overall operating

performance of the entire physical system as an entity, and the

maintenance (on a reliable and operationally sound basis) of total

system deliverability and the quality of Gas delivered.