Hardy Storage Company, LLC

Original Volume No. 1

Effective Date: 05/01/2009, Docket: RP09-525-000, Status: Effective

Second Revised Sheet No. 197 Second Revised Sheet No. 197

Superseding: First Revised Sheet No. 197

40 OPERATIONAL TRANSACTIONS

40.1 Seller may buy, sell and/or borrow or tender gas for return at a later

date (an "Operational Transaction") as necessary to:

(i) maintain system pressure and line pack;

(ii) manage system imbalances;

(iii) perform other operational functions of Seller in connection

with its storage services; or

(iv) otherwise protect the operational integrity of Seller's system.

Operational Transactions will be made at locations where the gas may be

most operationally needed from time to time. Operational Transactions will

have a lower priority than firm service.

40.2 Seller will post its quantities for sale, borrow or tender for bidding

on its electronic bulletin board in accordance with the applicable bidding

provisions which will be posted at the time of the Operational Transaction

offer. Seller reserves its right, in its sole discretion,

(i) to withdraw its postings;

(ii) reject all bids due to operational changes; and

(iii) reject any bids which do not meet or which contain

modifications to the terms of the posting or which contain

terms that are operationally unacceptable.

40.3 Seller will file a report on or before March 1 of each year reflecting

the Operational Transactions for the 12-month period ending the preceding

December 31. The report will indicate:

(i) whether the Operational Transaction was a purchase, sale,

borrow or tender;

(ii) the source of the gas in the Operational Transaction;

(iii) the date of the Operational Transaction (for borrows and

tenders, Seller will include the beginning and termination date

of the transaction);

(iv) volumes;

(v) the Operational Transaction price, expressed as a rate per

dekatherm;

(vi) the costs and revenues from the Operational Transaction;

(vii) the disposition of the associated costs and revenues, including

their absorption by Seller;

(viii)an explanation of the purpose of any Operational Transaction;

and

(ix) whether Seller exercised its rights under Sections 40.2(i) and

(ii) to withdraw postings or reject bids for Operational

Transactions.