Steuben Gas Storage Company

Original Volume No. 1

Effective Date: 06/27/1996, Docket: CP96- 35-002, Status: Effective

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

GENERAL TERMS AND CONDITIONS

(Continued)

established in Section 10 of these General Terms and

Conditions, provided however that no interruptible Customer

shall have a claim of priority on any Day to quantities in

excess of the lesser of (1) such interruptible Customer's

Maximum Daily Injection Quantity or Maximum Daily Withdrawal

Quantity as applicable or (2) such interruptible Customer's

nomination.

4.5 Delivery of Gas. Seller, subject to the other provisions

hereof, shall make daily delivery, to the extent practicable,

of Equivalent Quantities of Gas at the Point of Withdrawal.

4.6 Hourly Variation. Injections and Withdrawals shall be made at

uniform hourly rates to the extent practicable and Customer

shall not (unless otherwise agreed to by Seller) tender for

injection, nor shall Seller be obligated to receive gas for

injection, or to withdraw and deliver gas from storage, on an

hourly basis at rates of flow in excess of 1/24 of Customer's

nominated volume.

4.7 Limitation on Obligation. Should the quantities of Gas

received from Customer(s) by Seller at the Point of Injection

exceed the Maximum Daily Injection Quantity plus the Seller's

Injection Use, Seller shall notify Customer(s) of such fact,

a reasonable time after such becomes known, and Customer(s)

shall seek to reduce deliveries to Seller forthwith. In the

event any such excess delivery would jeopardize the safety of

Seller's operations and/or its ability to meet its contract

commitments to others, such decisions being solely within the

judgment and discretion of Seller, Seller shall have the right

to refuse to accept, without any liability to the Customer, or

any other person, all or such part of said excess delivery as

Seller deems necessary, and shall notify Customer accordingly.

4.8 Reduction in Maximum Storage Quantity. In the event that

Customer nominates or utilizes less than 50% of its Maximum

Storage Quantity under Rate Schedule IS for a period of one

(1) year, Seller may reduce Customer's Maximum Storage

Quantity to 125% of the average utilization during such year,

which new Maximum Storage Quantity, as applicable, shall be

effective on the first Day of the Month following the Month in

which Seller gives Customer notice of such reduction.