Bluewater Gas Storage, LLC

Original Volume No. 1

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

Original Sheet No. 134 Original Sheet No. 134 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(j) Liability of BLUEWATER: BLUEWATER shall not be

liable for any costs incurred by any Customer or point operator in

complying with an Action Alert or OFO. BLUEWATER shall not be

responsible for any damages that result from any interruption in

service that is a result of a Customer's or point operator's failure

to comply promptly and fully with an Action Alert or OFO, and the

non-complying Customer or point operator shall indemnify BLUEWATER

against any claims of responsibility. However, BLUEWATER shall use

reasonable efforts to minimize any such costs or damages.

(k) Unilateral Action: In the event that (l) Customer(s)

or point operator(s) does (do) not respond to an OFO, or (2) the

actions taken thereunder are insufficient to correct the system

problem for which the OFO was issued, or (3) there is insufficient

time to carry out the procedures with respect to OFOs, BLUEWATER may

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, 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.

6. STORAGE OPERATIONS

6.1 Customer shall tender or cause to be tendered to

BLUEWATER at the Point(s) of Receipt any Gas which Customer desires

to have injected into storage plus applicable Fuel Reimbursement

volumes. Customer shall also receive or cause to be received Gas

requested to be withdrawn from storage at the Point(s) of Delivery.

6.2 Subject to the operating conditions then existing on the

delivering or receiving pipelines, BLUEWATER shall receive Gas for

injection from Customer at the Point(s) of Receipt and deliver Gas

to Customer at the Point(s) of Delivery as scheduled by Customer

from time to time; provided that BLUEWATER shall not be obligated to

receive for injection any quantity of Gas if the injection of the

same would cause the quantity of Gas stored for Customer's account

to exceed Customer's Maximum Storage Quantity; nor shall BLUEWATER

be obligated at any time to deliver more Gas to Customer than

Customer has stored in its Storage Inventory or Park Balance, as

applicable, or to receive from Customer more Gas than Customer has

outstanding in its Loan Balance.