Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 59 Original Sheet No. 59 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

Refusal.

(1)(a) If Customer's long-term HSS Service Agreement is at the

applicable Recourse Rate for that service and does not extend according

to its terms or otherwise continue as described at Section 4.1(b) above,

or Customer declines to extend the contract under the provisions

described at Section 4.1(b) above, Customer may continue service upon

termination of that Service Agreement by (i) agreeing to match the

highest value bid offered to Seller for Customer's firm service, or any

volumetric portion thereof, through the bidding process described at

Section 4.2 below, and (ii) executing a new Service Agreement

incorporating the new rate and term. This right of first refusal shall

apply only to firm Service Agreements with a term of 12 or more

consecutive months of service at the applicable Recourse Rate for that

service.

(b) This right of first refusal shall be deemed to be assigned

where a Customer holding such a right permanently releases and assigns

all or a portion of the capacity under that Service Agreement,

regardless of the duration of that permanent release. Moreover, a

Customer releasing and assigning all or a portion of the capacity may

structure the release so as to transfer the right of first refusal for

the duration of the release, even if that release and assignment is

subject to a recall by Customer that would terminate that release and

assignment.