Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 93E Original Sheet No. 93E : Effective

GENERAL TERMS AND CONDITIONS (Cont’d)

(d) Notwithstanding the foregoing requirements, if Seller

constructs new facilities to accommodate a Customer, Seller may require

credit assurance in an amount up to Customer’s proportionate share of

the cost of the new facilities. This credit assurance may be requested

at any time before or after the in-service date of the facilities, to

the extent mutually agreed to as a condition of the construction. As

Seller recovers the cost of these facilities through its rates, the

credit assurance required will be reduced accordingly. Specifically,

any credit assurance provided by a Customer related to new facilities

shall be returned to that Customer in equal monthly amounts over the

term of its Service Agreement for service related to the new facilities

or as otherwise mutually agreed upon by Seller and Customer. This

requirement is in addition to and shall not supersede or replace any

other rights that Seller may have regarding the construction of and

reimbursement for facilities.

If Customer defaults and Seller terminates service to Customer, then

Seller shall draw upon and retain such collateral as necessary to

reimburse Seller for the unamortized cost of the facilities constructed

for Customer. The capacity underlying any terminated Service Agreement

shall be made available pursuant to Section 4 of these General Terms

and Conditions. Within 60 days of the capacity being made available,

to the extent such capacity has been awarded, the credit assurance

retained by Seller from the original Customer shall be reduced to an

amount equal to the net present value of that portion of the future

reservation charge revenues of the original Customer that would have

been attributed to the cost of those facilities less the net present

value of that portion of the future reservation charge revenues of the

newly awarded Customer that may be attributed to the cost of the

facilities.