Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 04/01/2007, Docket: CP05-150-006, Status: Effective

First Revised Sheet No. 145 First Revised Sheet No. 145 : Effective

Superseding: Original Sheet No. 145

GENERAL TERMS AND CONDITIONS (Cont'd)

19.4 Critical Day Requirement for Penalties.

A "Critical Day" for storage will be declared by Seller whenever

Seller, in Seller's reasonable discretion, determines (based on criteria

such as weather forecasts, line pack, storage conditions, horsepower

availability, system supply and demand, and other operational

circumstances) that operating conditions are such that Seller faces a

threat to its system integrity and/or to Seller's ability to meet its firm

service obligations. With the exception of (1) the penalty provided in

Section 7(f) of the HSS Rate Schedule and (2) OFO penalties imposed

pursuant to the provisions of Sections 17 and 19 of the General Terms And

Conditions and/or the OFO provisions of individual Rate Schedules, Seller

will not impose penalties under this Section 19 and under any Rate Schedule

unless a Critical Day, as defined above, has been declared and is in effect

on Seller's system. For penalties ascribed for conduct that occurs over a

monthly as opposed to a daily period of time, these monthly penalties will

be imposed only for each day during the month on which a Critical Day was

declared.

Except for force majeure events and/or events or conditions which

threaten the integrity of Seller's system or Seller's ability to meet its

firm service obligations, Seller will notify Customers at least 24 hours in

advance on its Internet EBB (1) the effective dates of the Critical Day;

and (2) the type of penalties that will be applicable during the Critical

Day period. If due to declaration of a Critical Day, a monthly penalty

becomes applicable, Seller will notify Customers by posting on its Internet

EBB notice that the monthly penalty is applicable. Within two weeks of a

Critical Day event, Seller will post information on its EBB describing the

events leading up to the declaration of the Critical Day.