Bobcat Gas Storage

Original Volume No. 1

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Effective Date: 10/15/2008, Docket: RP08-608-000, Status: Effective

Original Sheet No. 71 Original Sheet No. 71

GENERAL TERMS AND CONDITIONS

(Continued)

4. CAPACITY RELEASE (Continued)

4.10 Billing. The Replacement Customer shall be billed and make

payments to Bobcat in accordance with the applicable Rate

Schedule, other provisions of this FERC Gas Tariff, and of its

Storage Service Agreement incorporating its bid terms. In

accordance with the terms of the release, the Replacement Customer

shall pay or be liable for the usage charges (plus all applicable

surcharges, Fuel Reimbursement, taxes, penalties, etc.) applicable

under the relevant Rate Schedule and Firm Storage Service

Agreement attributable to its usage of the released capacity.

Bobcat shall continue to bill the Releasing Customer all

applicable charges under its existing Storage Service Agreement,

excluding usage charges (plus all applicable surcharges, Fuel

Reimbursement, taxes, penalties, etc.) billed to the Replacement

Customer and attributable to its usage of the released capacity.

Invoices sent to the Releasing Customer shall reflect a credit

equal to any reservation charges (plus all surcharges applicable

thereto) being billed to the Replacement Customer for the released

capacity rights, or as otherwise agreed. If the Replacement

Customer fails to pay when due all or part of the amounts credited

to the Releasing Customer, Bobcat shall pursue payment from the

Replacement Customer by notifying such Customer by registered

letter, return receipt requested, that it has five (5) Business

Days from receipt of such letter to pay the amount due including

any applicable interest. If the Replacement Customer fails to pay

such amount by the end of the fifth day, Bobcat shall reverse the

credit and bill the Releasing Customer for such past due amounts,

plus applicable interest.

4.11 Rights and Obligations of the Parties.

(a) The Storage Service Agreement between the Releasing Customer

and Bobcat shall remain in full force and effect with the

Releasing Customer to receive a credit to its invoice as

described in Section 4.10 of these General Terms and

Conditions. If the Replacement Customer fails to pay all or

part of the amounts credited to the Releasing Customer after

the five Day notification period specified in Section 4.10

of these General Terms and Conditions, then Bobcat shall

reverse the credit and bill the Releasing Customer for such

past due amounts, plus applicable interest. The Storage

Service Agreement executed by the Replacement Customer shall

be fully effective and enforceable by and against the

Replacement Customer. The Replacement Customer may also

release capacity pursuant to this Section, and in such event

and for such purposes, shall be considered the Releasing

Customer.