Bobcat Gas Storage

Original Volume No. 1

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

Original Sheet No. 121 Original Sheet No. 121

GENERAL TERMS AND CONDITIONS

(Continued)

24. MISCELLANEOUS (Continued)

24.6. Policy with Respect to Fees and Construction of Facilities

(a) Except as provided in Section 24.6(b) of these General Terms

and Conditions, Customer shall reimburse Bobcat (a) for the

costs of any facilities installed by Bobcat with Customer's

consent to receive, measure, store, or deliver Gas for

Customer's account and (b) for any and all filings and

approval fees required in connection with Customer's Storage

Service Agreement that Bobcat is obligated to pay to the

Commission or any other governmental authority having

jurisdiction. Any reimbursement due Bobcat by Customer

pursuant to this Section shall be due and payable to Bobcat

within ten (10) days of receipt by Customer of Bobcat's

invoice(s) for same; provided, however, that subject to

Bobcat's consent, such reimbursement, plus carrying charges

thereon, may be amortized over a mutually agreeable period

not to extend beyond the primary contract term of the

Storage Service Agreement between Bobcat and Customer.

Carrying charges shall be computed utilizing interest

factors acceptable to both Bobcat and Customer.

(b) Bobcat may waive from time to time, at its discretion, all

or a portion of the facility cost reimbursement requirement

set forth in Section 24.6 of these General Terms and

Conditions for Rate Schedules FSS if Customer provides

Bobcat adequate assurances to make construction of the

facilities economical to Bobcat. All requests for waiver

shall be handled by Bobcat in a manner which is not unduly

discriminatory. For purposes of determining whether a

project is economical, Bobcat will evaluate projects on the

basis of various economic criteria, which will include the

estimated cost of the facilities, operating and maintenance

as well as administrative and general expenses attributable

to the facilities, the revenues Bobcat estimates will be

generated as a result of such construction, and the

availability of capital funds on terms and conditions

acceptable to Bobcat. In estimating the revenues to be

generated, Bobcat will evaluate the existence of capacity

limitations downstream of the facilities, the marketability

of the capacity, the interruptible versus the firm nature of

the service, and other similar factors which impact whether

the available capacity will actually be utilized.