Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 01/10/2008, Docket: RP08-114-000, Status: Effective

First Revised Sheet No. 196 First Revised Sheet No. 196 : Effective

Superseding: Original Sheet No. 196

GENERAL TERMS AND CONDITIONS (Cont'd)

39. Offsystem Pipeline Capacity

From time to time, Seller may enter into transportation and or storage

agreements with other interstate or intrastate pipeline companies ("off-

system capacity"). In the event that Seller acquires off-system capacity,

Seller will provide service to Customers with the off-system capacity

pursuant to Seller's open access tariff and subject to Seller's Commission-

approved rates, as such tariff and rates may change from time to time. For

purposes of transactions entered into subject to this Section 39, the

"shipper must have title" requirement is waived. This Section 39 does not

preclude Seller from seeking case specific authorization for the utilization

of off-system capacity by Seller for other purposes.

In the event that offsystem capacity used to render service to Seller's

Shippers is subject to renewal limitations, consistent with the offsystem

capacity provider's tariff or operating statement, Seller will indicate, in

any posting of capacity available for service, any limitation to extension

rights that will apply as a result of the limitation on the offsystem

capacity. Any such extension limitation shall be reflected in the Service

Agreement between Seller and Shipper. This provision shall not impact any

right of first refusal Shipper may have pursuant to this tariff, except that

extension of the affected Service Agreement shall be limited to the term of

Seller's contract or service agreement with the offsystem capacity provider.