Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 05/09/2010, Docket: RP10-590-000, Status: Effective

First Revised Sheet No. 88 First Revised Sheet No. 88

Superseding: Original Sheet No. 88

GENERAL TERMS AND CONDITIONS (Cont'd)

8. METER ALLOCATIONS

This Section specifies the procedures for allocating any differences

between the aggregate of all Customers' Scheduled Daily Quantities and actual

measured quantities (Difference(s)). Unless otherwise agreed to between

Seller and Confirming Party, physically measured quantities shall be

allocated on scheduled daily quantities and shall be made using dekatherm

units.

8.1 Predetermined Allocation Method (PDA)

(a) If an OBA is not in effect at a receipt or delivery point, and all

Customers cannot agree upon an allocation methodology, "pro rata based upon

confirmed nominations" shall be used as the default PDA method.

(b) Seller may negotiate and enter into OBAs with interstate

pipelines, intrastate pipelines and other entities. No Difference balanced

in-kind shall be allocated to any Customer at the receipt or delivery points

covered by the OBA. If an interstate pipeline charges Seller for Differences

in the OBA, however characterized, Seller shall charge such interstate

pipeline an equivalent and offsetting charge. If Seller is unable to charge

or collect such equivalent and offsetting charges for such Differences,

Seller, on an as-billed basis, shall allocate and bill such charges to

Customers responsible for the imbalance at the point of interconnection at

which the Difference giving rise to the charges occurred.

necessary.

(d) Changes to a PDA may be made prospectively during the month. Only

one PDA may be submitted per allocation period. Seller may in its reasonable

discretion make retroactive reallocations of transactions to correct for

errors. Otherwise, no retroactive reallocations of any transactions shall be

permitted without the approval of Seller and the agreement of those Customers

with Service Agreements affected by such retroactive reallocations, provided

that the agreement by such affected Customers shall not be unreasonably

withheld.

(e) PDAs shall remain in effect until a replacement PDA is received

from the Interconnecting Operator or upstream title holder; provided,

however, that PDAs shall be updated at the beginning of each month. A new

allocation detail may be needed when a nomination changes.

(f) If the PDA is provided using EDI, Seller shall respond with an EDI

confirmation indicating receipt of the PDA within 15 minutes, and whether

there are any errors associated with the PDA.