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. 138 Original Sheet No. 138 : Effective

GENERAL TERMS AND CONDITIONS (Cont’d)

18.3 Effectiveness of Transfers. Any transfer made pursuant to Section

18.2 shall be effective on the date a Customer's completed nomination form

is received by Seller electronically through its EBB, unless Seller rejects

the transfer within two business days of Seller's receipt of such completed

nomination form pursuant to Section 18.4. A transfer shall become effective

as of a date certain in accordance with the foregoing, and shall have

prospective, as opposed to retroactive, effect with respect to the affected

accounts from that date certain. The cumulative balance in such affected

accounts shall be adjusted as of the effective date of a transfer in

accordance with the transfer.

18.4 Rejection by Seller. Seller may, in its reasonable discretion, reject

any proposed transfer if it determines that such transfer cannot be

accommodated: (i) without diminishing Seller's ability to provide firm

service to any Customer; (ii) without increasing Seller's firm service

obligations; (iii) because the gas sought to be transferred is not on

Seller's system; (iv) because of the actual account status of the

transferor's and transferee's accounts, as reflected in Seller's records;

(v) because the transfer is requested to have a retroactive effective date;

or (vi) without threatening the integrity of Seller's system. If the

transfer is rejected pursuant to this Section 18.4, Seller shall provide the

Customer seeking to transfer inventory that Customer's actual account status

under the applicable Service Agreement.