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. 202 Original Sheet No. 202 : Suspended

 

FORM OF SERVICE AGREEMENT FOR

INTERRUPTIBLE STORAGE SERVICE AGREEMENT

(For Use Under Rate Schedule ISS)

 

Service Agreement between Freebird Gas Storage, LLC ("Freebird") and Shipper

Shipper Full Legal Name ______________________ Agreement Date _______________

Agreement Number ______________________________

This Agreement is made between Freebird and Shipper, who hereby agree upon

the terms of Freebird’s services, at the rates and on the terms and conditions

provided herein. This Agreement is subject to the terms of Freebird's Gas

Tariff on file with the FERC (as revised from time to time, the "Tariff"),

including without limitation, the applicable Rate Schedule, such Tariff terms

being incorporated herein by reference. In the event of a conflict between

this Agreement and the Tariff, the Tariff will control.

1. SERVICE: Firm Storage Service under Rate Schedule FSS

2. TRANSACTION PERIOD: Beginning Date: 9:00 a.m. CT on ____________

Ending Date: 9:00 a.m. CT on ____________

3. QUANTITIES:

MDIQ: ______ Dth per Day, Begin 9:00a.m.CT on ______,End 9:00a.m.CT on ______

MDWQ: ______ Dth per Day, Begin 9:00a.m.CT on ______,End 9:00a.m.CT on ______

MSQ: _____________ Dth

Freebird is not obligated to receive Gas for injection on an hourly basis, or

tender Gas for withdrawal on an hourly basis, at rates of flow in excess of

1/24 of Shipper’s MDIQ or MDWQ, respectively.

4. SERVICE FEES:

Storage Reservation Charge (determined by MSQ): $_________ /Dth/Month

Commodity Rate:

Storage Injection __________ per Dth, plus ________ percent per Dth for Fuel

Storage Withdrawal _________ per Dth, plus ________ percent per Dth for Fuel

Overrun Injection __________ per Dth, plus ________ percent per Dth for Fuel

Overrun Withdrawal _________ per Dth, plus ________ percent per Dth for Fuel

Title Transfer Fee, if applicable __________

Shipper agrees to pay Freebird all charges as described in the FSS Rate

Schedule, as specified in this Agreement.

5. POINT OF INJECTION / WITHDRAWAL: _________________________________________

6. SPECIAL TERMS AND CONDITIONS:

7. SECURITY INTEREST: IN ADDITION TO, AND NOT IN SUBSTITUTION FOR, ANY LIEN

CREATED IN FAVOR OF FREEBIRD PURSUANT TO ALA. CODE § 7-7-101, ET SEQ., OR ANY

OTHER LAW, SHIPPER GRANTS TO AND IN FAVOR OF FREEBIRD A SECURITY INTEREST IN

SHIPPER’S STORAGE INVENTORY (WHETHER DELIVERED TO FREEBIRD ON THE EFFECTIVE

DATE HEREOF OR ANY DATE THEREAFTER) AND ALL PROCEEDS RELATED THERETO

(INCLUDING, WITHOUT LIMITATION, INSURANCE PROCEEDS RELATED TO DAMAGE OR LOSS

OF STORAGE INVENTORY) AS SECURITY FOR PAYMENT OF ALL FEES AND OTHER AMOUNTS

OWED BY SHIPPER TO FREEBIRD. SUCH SECURITY INTEREST SHALL BE A FIRST PRIORITY

SECURITY INTEREST AND SHIPPER SHALL CAUSE ALL OTHER HOLDERS OF A SECURITY

INTEREST IN SUCH STORAGE INVENTORY TO DELIVER TO FREEBIRD AN ACKNOWLEDGEMENT

(SATISFACTORY TO FREEBIRD IN ITS REASONABLE DISCRETION) THAT FREEBIRD’S

INTEREST IS OF FIRST PRIORITY.

8. OTHER: No assignment of the rights and obligations hereunder shall be

effective unless effectuated in accordance with the terms of the Tariff. This

Agreement shall be binding upon and inure to the benefit of the respective

authorized successors and assigns. No modification of this Agreement shall be

effective until executed in writing by both Freebird and Shipper. This

Agreement may be terminated only in accordance with the terms of the Tariff.

All indemnification obligations and assumptions of liability shall survive any

termination of this Agreement. THIS AGREEMENT IS GOVERNED BY THE LAWS OF THE

STATE OF ALABAMA, EXCLUDING CONFLICTS-OF-LAW RULES THAT MIGHT GIVE REFERENCE

TO THE LAWS OF ANOTHER JURISDICTION.

9. PROCEDURES: If the foregoing accurately reflects Shipper’s understanding

of the terms of the transaction agreed to by Shipper and Freebird, Shipper

shall sign and return this Agreement to Freebird. If any changes are required

to reflect Shipper’s understanding, Shipper must notify Freebird in writing of

the changes required to reflect Shipper’s understanding. If Shipper fails to

notify Freebird in writing of such changes, the terms herein shall, in

accordance with Section 3.2 of the Tariff, be deemed for all purposes to

correctly set forth the terms of the transaction agreed to by Freebird and

Shipper.

Sign and fax this Agreement within 3 days to:

Priscilla Hamic, Freebird Gas Storage, LLC, Fax 281-374-3088