Hardy Storage Company, LLC

Original Volume No. 1

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

Original Sheet No. 195 Original Sheet No. 195 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

38.8 Rate Treatment. Seller shall have the right to seek in future

general rate proceedings discount-type adjustments in the design of its

rates related to Negotiated Rate agreements that were converted from pre-

existing discount agreements to Negotiated Rate agreements, provided that

the type of pre-existing service is not altered as a result of the

conversion to a Negotiated Rate. In those situations, Seller may seek a

discount-type adjustment based upon the greater of: (a) the Negotiated

Rate revenues received or (b) the discounted rate revenues which otherwise

would have been received.

38.9 Negotiated Rate Surcharge and Retainage Components. If Seller

negotiates surcharge or retainage percentage rate components at lower than

the maximum rate level for those components as part of a Negotiated Rate

arrangement, it will assume any under-recovery of costs or retainage from

negotiated Customers in order to ensure that its recourse Customers are

not better or worse off due to Negotiated Rate arrangements with

individual Customers. To accomplish this, Seller will credit full

recourse rate surcharge and retainage amounts to the appropriate surcharge

and retainage accounts.

38.10 Filing Requirement. With respect to Negotiated Rate arrangements,

unless Seller executes and files a non-conforming Service Agreement,

Seller will file with the Commission a tariff sheet stating the exact

legal name of the Customer, the Negotiated Rate, the Rate Schedule, the

receipt and delivery points, the contract quantities, and where

applicable, any Negotiated Rate formula. The Negotiated Rate arrangement

shall not become effective earlier than the filing date of the tariff

sheet, unless the Negotiated Rate arrangement is dependent on information

available on the first day of the month, and the filing date of the tariff

sheet falls after the first day of the month. Any such filed tariff sheet

will contain a statement that the Negotiated Rate agreement does not

deviate in any material aspect from the Form of Agreement in the Tariff

for the applicable Rate Schedule.

38.11 Accounting Treatment. To ensure compliance with the foregoing

Sections 38.8, 38.9, and 38.10, and to ensure that recourse Customers are

not better or worse off due to Negotiated Rate arrangements, Seller shall

maintain and provide separately identified and totaled volume, billing

determinant, rate or surcharge component, and revenue accounting

information for its Negotiated Rate arrangements in any general or limited

rate change filing that it makes. Transactions related to Negotiated Rate

agreements that originated as a pre-existing discounted service and were

subsequently converted will be recorded separately from those originating

as Negotiated Rate agreements.