Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 181 Original Sheet No. 181 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

33. RETAINAGE ADJUSTMENT MECHANISM (RAM)

33.1 In General. Retainage, as defined at Section 1 of the General Terms

and Conditions, shall apply to all Rate Schedules of this Tariff. The

amount of such Retainage shall be determined based upon the Retainage

percentages, as set forth at Sheet No. 13 of this Tariff. This Retainage

shall be adjusted pursuant to the Retainage Adjustment Mechanism (RAM) set

forth in this Section. Seller shall not recover any extraordinary gas losses

pursuant to this provision.

33.2 Seller's RAM Filing. Annually, and at such other times as Seller in

its reasonable discretion determines necessary based upon operating or other

conditions, Seller shall adjust the Retainage percentage to take into

account both prospective changes in Retainage requirements and over or under

recovered Retainage quantities from the preceding period as described at

Section 33.4 below for its storage facilities. That Retainage adjustment

shall be effected by means of a RAM filing, which shall be filed with the

Commission (i) annually on or before October 1 to become effective November

1 (Annual RAM Filing), and (ii) at such other times as required by operating

or other conditions, to become effective 30 days after filing (Periodic RAM

Filing).

33.3 Accounting for Activity. Seller will account for all under or over

recovered company-use, lost, and unaccounted-for quantities in Account No.

186.

33.4 Retainage Percentage. The Retainage percentage, as adjusted by Seller

through its RAM filings, shall consist of the sum of (i) the Current

Retainage Percentage, and (ii) the Under/Over Recovered Retainage

Percentage, calculated in the following manner: