Hardy Storage Company, LLC

Original Volume No. 1

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

First Revised Sheet No. 121 First Revised Sheet No. 121 : Effective

Superseding: Original Sheet No. 121

GENERAL TERMS AND CONDITIONS (Cont’d)

14.8 Billing.

(a) Seller, in accordance with the terms of this Tariff, shall:

(i) bill the Releasor for the full reservation charge, applicable

reservation-related surcharges and any other fixed charges for which

Releasor is otherwise obligated to Seller, less either the reservation

charge bid by Releasor's Replacement Customer or the reservation charge

portion of amounts billed to Replacement Shippers paying one-part volumetric

rates; and (ii) bill the Replacement Customer for (A) the reservation charge

bid by that Replacement Customer (except for periods during which the

Releasor has recalled the capacity), (B) all commodity charges, or all

payments under one-part volumetric rates, and any minimum volumetric

commitment agreed to but not met by the Replacement Shipper, (C) any

commodity surcharges, (D) any penalties or HSCQ balance correction costs

associated with the assigned capacity, and (E) any applicable overrun

charges, as any of these charges may change from time to time upon approval

of the Commission. For all payments received from Replacement Customer,

Seller shall allocate such payment first to the reservation charge (or to

the reservation charge components under a one-part rate) and then any

amounts above that level to the commodity charge or to the commodity charge

component under a one-part rate). Replacement Customer may, upon notice to

Seller and approval of the Releasor, appoint Releasor as its agent to

receive such billings from Seller. The charges shall be pro-rated for a

Billing Month if necessary.

(b) For all assignments of service rights, Releasor shall remain

ultimately responsible to Seller for full payment of the reservation charge,

any applicable reservation-related surcharges, and any other fixed charges

for which Releasor is otherwise obligated to Seller. If Releasor proposes a

Permanent Release of its capacity, Seller will agree to discharge the

Releasor of its obligations on a prospective basis in whole or in part

provided (i) the Replacement Customer meets the requirements in Section 9.5

of these General Terms and Conditions, (ii) Seller would be financially

indifferent, as determined by Seller in its reasonable discretion, to the

discharge if such discharge is granted, and (iii) Seller’s lenders agree to

such discharge. Until payment by Replacement Customer to Seller of any

unpaid reservation charges, any claims Releasor may have relating to those

charges shall be subordinated to those of Seller. Any reservation charge

payments made by Replacement Customer to Seller will not be withheld from

Releasor by Seller due to Replacement Customer's failure to pay Seller other

amounts owed that are unrelated to the released capacity. In the event of

termination of Releasor's Service Agreement with Seller, Replacement

Customer's Service Agreement with Seller is deemed terminated unless (1)

Replacement Customer agrees to pay Seller the currently effective maximum

rates for service under the Tariff, or (2) Seller and Replacement Customer

mutually agree upon a discounted rate or negotiated rate for service under

this Tariff; provided, however, that any Replacement Customer shall be

entitled to continued service at the contract rate between the Releasor and

Seller.