Honeoye Storage Corporation

Original Volume No. 1A

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Effective Date: 04/01/2003, Docket: RP03-256-002, Status: Effective

First Revised Sheet No. 96A First Revised Sheet No. 96A : Effective

Superseding: Original Sheet No. 96A

be sold as near as practical to the marker rate existing at the time the

Penalty Gas is sold. If sale of Penalty Gas is made to an affiliate of Seller

or purchased by Seller, Seller shall sell or purchase such Penalty Gas at

no less than the Niagra spot market price on the Day of such sale.

 

(b) Allocation Base. Customers will receive a pro rata allocation of net

penalty revenue, based upon the following allocation base:

 

(1) Non-offending Rate Schedule FSS Customers: The Maximum

Storage Quantity such Customers had a right to store in the Month

Withdrawal Penalty invoked; and

(2) Non-offending Rate Schedule ISS Customers: The Average

Monthly Storage Volume the Customer stored in the Month

Withdrawal Penalty invoked.

 

(c) Monthly Credit. Each Customer will receive a Monthly Credit based

upon the formula

X (Y / Z), where:

 

X = Total net Penalties collected by Seller in a Month

Y = The Customer's allocation base derived in accordance with

Section 8.4(b) above; and

Z = The Sum of all of Customers' allocation bases derived in

accordance with Section 8.4(b) above.

 

9. FORCE MAJEURE

 

9.1 Definition. The term "force majeure" as used herein shall mean acts of God,

strikes, lockouts, or other industrial disturbances; acts of the public enemy, wars,

blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes,

fires, storms (including but not limited to tornadoes or tornado warnings),

crevasses, floods, washouts; arrests and restraints of the government, either

Federal or State, civil or military or civil disturbances. Relative to Seller's service

and solely to the operation of its system, force majeure shall also mean

shutdowns for purposes of necessary repairs, relocation, or construction of

facilities; breakage or accident to machinery, wells or lines of pipe or casings;

testing (as required by governmental authority or as deemed necessary by Seller

for the safe operation of the underground storage reservoir and facilities required

to perform the service hereunder), the necessity of making repairs or alterations

to machinery or lines of