Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective

Original Sheet No. 33 Original Sheet No. 33 : Effective

IHSS RATE SCHEDULE

INTERRUPTIBLE HARDY STORAGE SERVICE (Cont'd)

7. PENALTIES

(a) If Customer fails to comply with an operational flow order issued

by Seller pursuant to Section 17 (Operational Flow Orders) of the General

Terms and Conditions, a penalty of $5.00 per Dth per day shall be assessed

to Customer for all quantities in violation of that operational flow order.

(b) If Customer fails to withdraw all of Customer's HISQ by

Customer's Final Withdrawal Date, any such quantities not withdrawn shall be

forfeited automatically by Customer to Seller free and clear of all liens

and encumbrances. Seller shall post such forfeited quantities on its EBB as

gas available for sale to the highest bidder within a 24-hour notice period.

Such posting may provide as a condition of sale that such gas be withdrawn

from storage within a period of time to be specified in the notice. Upon

receipt of payment, Seller shall treat the forfeited gas proceeds as Penalty

Revenues as defined in Section 19.3 of the General Terms and Conditions.

assessed and paid in addition to all applicable rates and charges under this

Rate Schedule, including any overrun charges.

(d) If Customer seeks to avoid any penalty provided for in this

Section on the ground that such charge was incurred because of a force

majeure event as defined in Section 15 (Force Majeure) of the General Terms

and Conditions, Customer shall document such force majeure event to Seller.

Seller shall waive penalties to the extent the penalty was caused by a bona

fide force majeure event as defined in said Section 15.

(e) Seller may waive its right to collect all or any portion of any

penalties assessed against Customer or its right to retain all or any

portion of gas, provided that any such waiver is granted in a

nondiscriminatory manner.

8. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions are applicable to this Rate

Schedule and are hereby made a part hereof, with the exception of Sections

4, 12, and 14.