Freebird Gas Storage, L.L.C.

First Revised Volume No. 1

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Effective Date: 10/01/2008, Docket: RP08-304-000, Status: Effective

Original Sheet No. 135 Original Sheet No. 135 : Suspended

 

greater of the confirmation quantity or the Elapsed Prorated Scheduled Quantity

shall be the new confirmed quantity.

 

(d) With respect to Sections 8.8(a), (b), and (c), if there is no response to

a request for confirmation or an unsolicited confirmation response, Freebird

shall provide the service requester with the following information to explain

why the nomination failed, if applicable:

 

(1) the Shipper’s Transporter did not conduct the confirmation;

(2) the Transporter indicates that the upstream confirming party did not

conduct the confirmation;

 

(3) the Transporter indicates that the upstream service requester did not have

the gas or submit the nomination;

 

(4) the Transporter indicates that the downstream confirming party did not

conduct the confirmation;

 

(5) the Transporter indicates that the downstream service requester did not

have the market or submit the nomination.

 

Ranking should be included in the list of data elements. Freebird shall use

Shipper provided rankings when making reductions during the scheduling process

when this does not conflict with the rules set forth in this Gas Tariff.

 

8.8 Inventory Management

(a) Receipt and Delivery Defaults. In the event of either Shipper’s or

Freebird’s unexcused failure (and for purposes of this Gas Tariff, an

"unexcused failure" shall not include any failure caused by a Force Majeure or

any other interruption of service permitted under this Gas Tariff) to deliver

or receive a quantity of Gas (the "Default Quantity") to or from the other

Party (or to or from a third party for the account of the other Party) in

accordance with a proper nomination under a particular transaction (the

"Defaulted Transaction"), such defaulting Party shall use its best efforts to

notify the other Party before the scheduled delivery or receipt date, as

applicable, for such Default Quantity. In any event, the non-defaulting Party

shall provide written notice of the Receipt Default or Delivery Default, as

the case may be, to the defaulting Party within three (3) Days after the date

of such Delivery Default or Receipt Default (a "Default Notice"), and indicate

in such Default Notice whether or not the non-defaulting Party wishes to

utilize the remedy provisions of this Section 8.8. Subject to Sections 11 and

23 of this Gas Tariff but notwithstanding any other provision herein or in any

Service Agreement to the contrary, the remedies of a non-defaulting Party for

a Delivery Default or Receipt Default will be limited to the remedies stated

in this Section 8.8. If the non-defaulting Party wishes to utilize the remedy

provisions of this Section 8.8, the Parties will (unless the terms of Section

8.8(d) are applicable) act in accordance with Sections 8.8(b) or 8.8(c), as

applicable, which may include, among other things, the use of commercially

reasonable efforts to enter into a corresponding transaction (the

"Corresponding Transaction") (which may include (among other things), to the

extent possible given the nature of the relevant Defaulted Transaction, (a)

entering into an offsetting transaction, e.g., if the Defaulted Transaction is

an ILS transaction, entering into an IPS transaction, or if the Defaulted

Transaction is an IPS transaction, entering into an ILS transaction, or (b)

entering into such other transaction as to which the Parties may agree) to

attempt to mitigate damages to the extent possible while maintaining, to the

extent possible, the economic substance of the initial deal between the

Parties as evidenced by the original terms of the Defaulted Transaction. Upon

request, the Party claiming a Receipt Default or Delivery Default by the other

Party shall provide written documentation of such Receipt Default