Honeoye Storage Corporation

Original Volume No. 1A

Effective Date: 02/21/2009, Docket: RP09-263-000, Status: Effective

Third Revised Sheet No. 16 Third Revised Sheet No. 16 : Pending

Superseding: Second Revised Sheet No. 16

(e) COMPETITIVE BIDDING PROCEDURE. Bids may be submitted by potential

Replacement Customers via the EBB during the posting period. Seller shall post

the terms of each complete bid, but will not post the identity of the bidder. Posted

bids will be accessible via EDM. Seller will also require all information set forth

in Section 2 of the General Terms and Conditions of this FERC Gas tariff. Upon

expiration of the offer, Seller shall remove such offer of release from its EBB.

Potential Replacement Customers may withdraw their posted bids at any time

during the bidding period via the EBB or EDM. Bids posted by potential

Replacement Customers are binding until written or electronic notice of

withdrawal is received by Seller. Potential Replacement Customers cannot

withdraw bids after the bidding period ends. Such potential Replacement

Customers may not post another bid for the same capacity lower than their

previous bid.

(f) Matching Rights. A Pre-Arranged Replacement Customer shall have the right of

first refusal for a time period as negotiated by the Releasing Customer and the

Pre-Arranged Replacement Customer ("Matching Period). If no Matching Period

has been negotiated, the Matching Period will be deemed to be one (1) hour

following the time the Pre-Arranged Replacement Customer has been notified of

the winning bid. In the event