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. 61 Original Sheet No. 61 : Effective

GENERAL TERMS AND CONDITIONS (Cont’d)

Agreement prior to the termination of the existing long-term HSS Service

Agreement. Customer continuing service under either (i) or (ii) retains

its right of first refusal on the portion continued, if it is under a

Service Agreement with a term of 12 or more consecutive months of

service, at the applicable Recourse Rate for that service. If Customer

does not continue all or a portion of its service pursuant to the

provisions of (i) or (ii) above, within 20 business days following

Seller’s two day notification period as described in this Section

4.1(c)(4) above, or such other period as may be mutually agreed to

between Seller and Customer on a not unduly discriminatory basis,

Customer’s right of first refusal will immediately terminate.

(6) If no acceptable offers satisfying Seller's stated minimum

terms are received, and no new long-term HSS Service Agreement has been

reached between Seller and the Customer holding the capacity under the

expiring Service Agreement, Seller shall post such capacity for an

indefinite period as Generally Available Capacity. Seller will post

minimum price and other terms for such Generally Available Capacity, as

described at Section 4.2 below. Seller may change those minimum price

and other terms, or may withdraw the posting of such Generally Available

Capacity, at any time prior to receipt of a bid satisfying the posted

minimum terms for that capacity. Any such minimum price or other terms

shall be subject to the same limitations applicable to other available

capacity, as set forth in this Section 4.

(7) Seller will accept Recourse Rate bids for posted Generally

Available Capacity on a first-come, first-served basis. If Seller

receives an acceptable bid for such Generally Available Capacity that

meets its stated minimum conditions but is at less than the Recourse

Rate, Seller will post that bid on its EBB for the posting periods set

forth in Section 4.2(a) below. Any other competing bidder may obtain the

capacity by submitting during the posting period a highest value bid (a

bid that exceeds the value of the initial posted bid), as determined in

accordance with the bid evaluation criteria set forth at Section 4.2(c)

below.

(d) Termination of Other Long-Term HSS Service Agreements. If a long-

term HSS Service Agreement is not continued by its own terms or by reason of

the Customer's exercise of its right of first refusal, such long-term HSS

Service Agreement shall be subject to pregranted abandonment unless otherwise

specified in the Service Agreement and shall terminate as specified therein

and Seller shall have no further obligation to Customer.