Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 58 Original Sheet No. 58 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

4. AUCTIONS OF AVAILABLE FIRM SERVICE

This Section governs the manner in which requests for firm storage service

shall be accommodated by Seller when capacity is or becomes available,

unless otherwise indicated in the applicable Rate Schedule. This Section

applies to existing firm storage capacity that may become available and not

to new storage capacity. Additional provisions governing auctions of service

under specific Rate Schedules are set forth in individual Rate Schedules in

this Tariff.

4.1 Circumstances Under Which Capacity Becomes Available.

(a) Termination of HSS Service Agreements. Upon the termination of

any HSS Service Agreement having a term of less than one year, the capacity

associated with such terminated HSS Service Agreement shall be made

available for bidding under the procedures described at Section 4.2 below,

provided that: (i) the capacity is not previously committed under the terms

of this Tariff and (ii) facility capacity remains available.

(b) Continuing Service Under Certain Long-Term HSS Service Agreements.

Seller shall notify Customer in writing of the upcoming expiration or

termination of any HSS Service Agreement with a term of 12 or more

consecutive months of service at the applicable Recourse Rate for that

service (a long-term HSS Service Agreement), and will provide such notice at

least 30 days before Customer is obligated to notify Seller of its intent to

exercise its right of first refusal or other service continuation rights

under the HSS Service Agreement as described in paragraph (c)(2) below.

Upon completion of the term of any long-term HSS Service Agreement, Customer

shall have the right to continue receiving service under that long-term HSS

Service Agreement if that HSS Service Agreement is at the Recourse Rate and

(i) extends beyond that term according to its terms, or (ii) does not

provide for pregranted abandonment and Customer executes a new long-term HSS

Service Agreement at the Recourse Rate. If the above requirements are not

satisfied at the termination date of the primary term of a long-term HSS

Service Agreement, service under that long-term HSS Service Agreement shall

be subject to the termination and right of first refusal provisions set

forth at paragraph (c) below.