Monroe Gas Storage Company, LLC

Original Volume No. 1

Effective Date: 04/29/2009, Docket: RP09-447-000, Status: Effective

Original Sheet No. 158 Original Sheet No. 158

GENERAL TERMS AND CONDITIONS

(Continued)

8. CAPACITY RELEASE (Continued)

8.11 Rights and Obligations of the Parties.

(a) The Service Agreement between the Releasing Customer and Operator

shall remain in full force and effect with the Releasing Customer

to receive a credit to its invoice as described in Section 8.10

above. 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 8.10, Operator shall

reverse the credit and bill the Releasing Customer for such past

due amounts, plus applicable interest. The 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 8, and in such event and for such purposes, shall be

considered the Releasing Customer.

(b) Operator shall accept nominations, schedule service, afford

priority of service and interrupt service based on instructions

and communications from the Releasing Customer and the Replacement

Customer which are consistent with one another and with the terms

and conditions of Operator's FERC Gas Tariff and their respective

Service Agreements. In the event that instructions or nominations

from the Releasing Customer and Replacement Customer are, in

Operator's opinion, inconsistent or conflicting, Operator shall

comply with the instructions of the Releasing Customer; provided,

however, that such instructions must not be inconsistent with

Operator's FERC Gas Tariff or the terms of either the Releasing

Customer's or Replacement Customer's Service Agreement. The

Releasing Customer will indemnify Operator against any claim or

suit by the Replacement Customer, its successors or assigns,

arising from any action taken by Operator in reliance upon the

Releasing Customer's nominations and instructions and will hold

Operator harmless for any action taken by Operator in reliance

upon the nominations and scheduling instructions of the

Replacement Customer; provided, however, that the Releasing

Customer shall not be liable for the Replacement Customer's

failure to pay the 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.