Honeoye Storage Corporation

Original Volume No. 1A

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

Second Revised Sheet No. 19 Second Revised Sheet No. 19 : Pending

Superseding: First Revised Sheet No. 19

7.4 BILLING ADJUSTMENT. Releasing Customer shall remain fully obligated

under the terms of its Service Agreement with Seller during any capacity release

except for usage charges incurred by any Replacement Customer that has

purchased capacity released by the Releasing Customer. Seller shall credit the

invoice of Releasing Customer each Month for the charges and volumetric rates

invoiced, by Seller to Replacement Customer provided, however, that such credit:

(a) shall not include any charges billed to the Replacement Customer under

Section 5 of this Rate Schedule or Rate Schedule ISS, and

(b) shall be reduced by the amount of any marketing fee Seller is entitled to

collect pursuant to Section 7.5 of this Rate Schedule.

If a Replacement Customer fails to pay all or any part of its charges under the

Deliverability Reservation Rate and Capacity Reservation Rate which have been

credited to Releasing Customer within fifteen (15) days of the due date, such

unpaid amount, with applicable interest accruing from the date Replacement

Customer's payment was due, will be charged to the Releasing Customer's next

monthly bill and will be due and payable by Releasing Customer, unless

Replacement Customer in good faith shall dispute the billed charges in

accordance with the provisions set forth in Section 8.2 of the General Terms and

Conditions of this FERC Gas Tariff. If such failure to pay continues for thirty

(30) days after payment is due, and the Replacement Customer has not disputed

billings in accordance with Section 8.2 of the General Terms and Conditions of

this FERC Gas Tariff, then Seller may, in addition to any other remedies it may

have hereunder, terminate its Agreement with the Replacement Customer, and

the Replacement Customer shall be deemed to have consented to abandonment of

service under the Agreement. If the Agreement with the Replacement Customer

is so terminated and service abandoned, the capacity will revert to the Releasing

Customer, and will be governed by the terms and conditions of its existing

Agreement with Seller. If Releasing Customer pays delinquent amounts owed by

Replacement Customer and Seller subsequently receives payment from

Replacement Customer of some or all of such amounts, Seller will credit the