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. 146 Original Sheet No. 146 : Effective

GENERAL TERMS AND CONDITIONS (Cont’d)

19.5 No Imposition of Multiple Penalties.

Seller will not impose on a Customer both OFO and Critical Day

penalties for the same infraction.

19.6 Critical Day Miscellaneous.

(a) Seller anticipates that Critical Day penalties will be

implemented to impose system discipline to ensure Seller's ability to meet

its firm service obligations. To the extent Critical Day penalties are no

longer imposing system discipline, such that Seller's firm service

obligations are being threatened, Seller can implement an OFO to alleviate

conditions threatening the integrity of Seller's system. Seller can also

implement an OFO to deal with sudden, unexpected and catastrophic events on

its system.

(b) When reasonably feasible, Seller will post notices on its EBB

advising that if Customers take certain specific actions, Seller may be

able to avoid the issuance of a Critical Day, or minimize the sequential

issuance of Critical Days.