Steuben Gas Storage Company

Original Volume No. 1

Effective Date: 09/14/2001, Docket: RO00-485-001, Status: Effective

Original Sheet No. 156D Original Sheet No. 156D : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(e) the quantity of Gas required to remedy the

operational condition requiring the issuance of the

OFO; and

(f) any other terms Seller may reasonably require to ensure

the effectiveness of the OFO.

18.6 Failure to Comply with OFO. If Customer or agent fails to

comply with the terms of an OFO, for any reason other than

force majeure on an upstream or downstream pipeline, such

Customer shall be: (a) liable for any damages including, but

not limited to direct, consequential, exemplary or punitive

damages incurred by Seller or any other affected party as a

result of such failure. Notwithstanding anything to the

contrary in this Section 18.6, if Customer is required to

make a nomination pursuant to an OFO, unless critical

circumstances dictate otherwise, no damages and/or

penalties will be assessed unless Customer is given the

opportunity to correct the circumstances giving rise to the

OFO.

18.7 Seller's Liability for OFO's. Seller shall not be liable to

any person for any costs, damages or other liability

associated with the issuance of, or the failure to issue, any

OFO's, provided, however, Seller shall be liable for acts of

negligence or undue discrimination, such standards to be

judged in light of the emergency conditions under which OFO's

are issued.

18.8 Seller's Scheduling Authority. Seller shall have the right

to act as a scheduling agent for a Customer's account if (a)

the Customer refuses to schedule gas injections or

withdrawals as specified by an OFO issued pursuant to Section

18.4(a); or (b) if Seller requires additional quantities in

less than the twenty-four (24) hour notice period normally

required for an OFO, and the Customer has refused a verbal

request to schedule the required quantity of Gas.