Hardy Storage Company, LLC

Original Volume No. 1

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Effective Date: 07/06/2007, Docket: RP07-480-000, Status: Effective

Original Sheet No. 93D Original Sheet No. 93D : Effective

GENERAL TERMS AND CONDITIONS (Cont’d)

Adequate assurance of payment may include:

(1) a cash deposit with Seller of collateral held

for security, provided that such deposit may be applied by Seller to

satisfy a delinquent account;

(2) an irrevocable letter of credit that is both

from a creditworthy financial institution and in a form deemed

acceptable in Seller’s sole and reasonable discretion;

(3) a guarantee that is both from a creditworthy

entity and in a form deemed acceptable in Seller’s sole and reasonable

discretion; or

(4) a grant to Seller of a security interest in

collateral, the value of which is mutually agreed upon by Seller and

Customer.

Unless otherwise agreed, the credit assurance must at all times

maintain a value specified above equal to the highest estimated charges

during the term of the Service Agreements. Any deposit held by Seller

pursuant to Section 9.5 shall accrue simple interest at the Federal

Funds Rate. Upon Customer’s request, Seller will remit the balance of

the interest of Customer within thirty (30) days; provided, however,

that Seller shall not be required to remit interest to Customer more

often than every thirty days.

Seller has the right to seek additional security to cover the value of

any imbalance owed Seller by a non-creditworthy Customer. The

imbalances shall be valued at the “Spot Market Price” which shall be

defined, for each Dth on each applicable Day on which the gas is owed

as the midpoint of the range of prices reported for “Columbia Gas,

Appalachia” as published in Platts Gas Daily price survey or any

successor publication, less applicable transportation charges.

Furthermore, Seller has the right to seek security to cover the

estimated value of a future monthly imbalance for non-creditworthy

Customers as follows: For a non-creditworthy new Customer, a security

amount equal to 10% of such Customer’s estimated monthly usage

multiplied by the Estimated Imbalance Rate as described below. For a

non-creditworthy existing Customer, a security amount equal to such

Customer’s largest monthly imbalance owed to Seller over the most

recent 12-month period multiplied by the Estimated Imbalance Rate. The

term “Estimated Imbalance Rate” shall equal the average of the NYMEX

future prices for the available 12-month period as such prices close on

the day the Estimated Imbalance Rate is determined.