Honeoye Storage Corporation

Original Volume No. 1A

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Effective Date: 04/01/2007, Docket: RP07-182-001, Status: Effective

Substitute First Revised Sheet No. 100 Substitute First Revised Sheet No. 100 : Effective

Superseding: Original Sheet No.100

d) If during the open season, Seller receives no bids or rejects all bids, Seller

will post the capacity as unsubscribed capacity and Seller and the current

capacity holder may negotiate for continuation of service under mutually

satisfactory rates, terms, and conditions. During such negotiations with

the current capacity holder, or in the event that the current capacity holder

declines to negotiate for continuation or service, Seller may also enter into

negotiations with other potential customers for services to commence upon

the effective date of the termination of the current capacity holder’s FSS

Agreement. In no event, however, may the current capacity holder retain

capacity subject to the right of first refusal at a rate lower than the highest

rate contained in a bid, if any, that has been submitted for such capacity by

a qualified prospective successor Customer during the open season but

rejected pursuant to Section 10.2(c)(ii) of the General Terms and

Conditions of Seller’s currently effective tariff.

(e) Priority of Firm Storage Under Agreements: All firm Storage Service

Agreements under Rate Schedule FSS shall have equal priority as to

service, and shall have priority over interruptible Storage Services under

Rate Schedule ISS. Service under both FSS and ISS shall have priority

over Overrun Service.

10.3 Interruptible and Overrun Storage

(a) Priority of Nominations For Interruptible Service: Seller, in determining

the allocation of interruptible service capacity on any Day among

Customers which have nominated quantities of service desired on such

Day under Rate Schedule ISS, shall be assigned the order of priority of

such service on the basis that the highest rate offered for such service shall

be accorded the highest priority. If more than one nomination or request

for interruptible storage on a Day includes an offer of the same rate, then

the order of priority as among such nominations or requests shall be the

same, and if the available capacity is insufficient to provide the full level

of service proposed in such nominations or requests, the service provided

shall be allocated among such Customers pro rata based on the quantities

nominated or requested.