Central New York Oil And Gas Company, LLC

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP00- 61-001, Status: Effective

Original Sheet No. 97 Original Sheet No. 97 : Effective

GENERAL TERMS AND CONDITIONS (continued)

9.3 Limitations. Such force majeure affecting

the performance hereunder by either Seller or

Customer, however, shall not relieve such party of

liability in the event of concurring negligence or

in the event of failure to use due diligence to

remedy the situation and to remove the cause in an

adequate manner and with all reasonable dispatch,

nor shall such causes or contingencies affecting

such performance relieve Customer, in whole or in

part, from its obligations to pay the monthly

charges provided for in Section 8 of these General

Terms and Conditions.

10. PRIORITY OF SERVICE REQUESTS AND SERVICE AGREEMENTS

10.1 FIRM STORAGE

(a) Priority Of Request For Initial Firm Storage

Agreements: After notification, pursuant to Section 2.9

hereof, that Seller has available firm storage capacity

which is not subject to contract or is released pursuant to

Section 7 of Rate Schedule FSS, Seller will accept requests

that Seller enter into an Agreement for firm Storage

Service. Except as provided in Section 10.1(b) below, the

order of priority among such requests shall be based upon

the economic value of the transaction to Seller, with the

transaction producing the greatest economic value having the

highest priority of request, provided, however, that nothing

herein shall require Seller to provide service at any rates

that do not yield an acceptable return to Seller and

provided further, that Seller shall not be required to enter

into Service Agreements with terms of more than one year

unless Customer has a long-term debt rating of at least Baa3

according to Moody's Investors Service, or BBB- according to

Standard & Poor's Corporation, unless the obligations to the

Seller are guaranteed by a person with a long-term debt

rating equal to or greater than stated above. Economic

value shall be determined on the basis of the product of the

term of service in years in the request, (using a term not

to exceed twenty (20) years) and the Reservation Charges for

each year in the life of the Agreement agreed to in the

request by the requesting party, discounted to present value

by the then-current interest rate determined in accordance

with Section 154.501(d) of the Commission's Rules and

Regulations. The sum of the present value for each year in

the life of the Agreement shall be the economic value of the

Agreement. In the event two or more bids with equal

economic values are received for combined capacity in excess

of the quantity of available firm capacity, the capacity

will be allocated on a first come first served basis.