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. 180 Original Sheet No. 180 : Effective

GENERAL TERMS AND CONDITIONS (Cont.d)

32.3 Filing of Annual Charge Adjustment. Seller shall file rate

changes as necessary to reflect in the ACA rate any changes in the Annual

Charge ordered by the Commission. Any such filing shall become effective

without suspension or refund obligation.

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1/ In Order No. 472, the Commission gave natural gas pipelines the

choice of implementing an ACA clause, or including their annual

charges in Account 928 (Regulatory Commission Expenses) for

consideration in general rate filings made pursuant to Subpart D

of the Commission's Regulations. While exercising the ACA clause

option at this time, Seller reserves the right to switch to the

general rate filing method at a future date. If Order No. 472

annual charges are included in the cost of service in any future

rate case, Seller would file therein to eliminate its ACA rate

and Tariff provision.