Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective

Original Sheet No. 152 Original Sheet No. 152 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

24. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION

(a) Each Customer under this Tariff warrants for itself, its

successors and assigns, that all gas delivered to Seller for storage shall

be eligible for transportation in interstate commerce under applicable

rules, regulations or orders of the Commission. Customer will indemnify

Seller and save it harmless from all suits, actions, damages, costs, losses,

expenses (including reasonable attorney fees), and regulatory proceedings

arising from breach of this warranty. Replacement Customers under Section

14 (Release and Assignment of Service Rights) of the General Terms and

Conditions shall be considered to be "Customers" for purposes of this

Section, and therefore Releasors under Section 14 shall not be liable under

this Section for breach of the foregoing warranty by its Replacement

Customers.

(b) Where storage will be provided under § 311 of the Natural Gas

Policy Act (15 U.S.C. § 3371) and pursuant to Subpart B of Part 284 of the

Commission's Regulations (18 C.F.R. §§ 284.101 et seq.), Customer warrants

that such storage service is authorized to be provided within the meaning of

18 C.F.R. Section 284.102(d)(3), if the local distribution company or

intrastate pipeline company on whose behalf the storage service is being

provided will not have physical custody of and transport the gas or will not

hold title to the gas. Where storage will be provided under Seller's blanket

certificate, Customer warrants that an interstate pipeline will receive some

benefit from the transaction.