Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 05/01/2007, Docket: CP05- 15-003, Status: Effective

Original Sheet No. 40 Original Sheet No. 40 : Effective

quantity, down to and including zero, for such intra day nomination; provided,

however, if such intra-day nomination requires confirmation from an upstream

and/or downstream interconnected pipeline, then any intra-day nomination to

reduce previously scheduled quantities will be subject to, and limited to,

the reduced quantity confirmed by such upstream and/or downstream

interconnected pipeline.

(c) Nominations will be processed for scheduling in the order in which they

were received, by priority level as described in Section 4 of the General Terms

and Conditions of this FERC Gas Tariff. Nominations received after the

nomination deadline should be scheduled after the nominations received before

the nomination deadline.

(d) Notices provided under this Section 5.2 must be submitted in writing via

facsimile or the Internet Web Site. Customer shall provide notice of any

changes in deliveries to or receipt from Caledonia to all transporters and

shall be responsible for, and shall hold Caledonia harmless, from, any and all

liabilities and expense resulting from any such changes, unless the added

expense is due to the negligence of Caledonia.

5.3 Customer shall make available and tender any Gas to be injected hereunder

and receive and accept delivery, upon tender by Caledonia, any Gas requested to

be withdrawn from storage. The quantity of Gas stored for the account of

Customer shall be increased or decreased upon injection or withdrawal of Gas

from storage, as applicable. Customer shall not (unless otherwise agreed by

Caledonia) receive or deliver Gas, nor shall Caledonia be obligated to receive

Gas or deliver Gas on an hourly basis at rates of flow in excess of one

twenty-fourth (1/24) of Customer’s MDIQ (as limited by ADIQ) or MDWQ (as

limited by ADWQ), respectively. As determined by Caledonia in its sole and

reasonable judgment, flow rates above one twenty-fourth (1/24) of Customer’s

MDIQ (as limited by ADIQ) or MDWQ (as limited by ADWQ) may be permitted.

6. IMBALANCES

6.1 Caledonia-Caused Imbalances. The Parties recognize and acknowledge that

(i) if Caledonia fails to receive Gas from Customer or deliver Gas to Customer

in accordance with Customer’s nominations made pursuant to the scheduling

procedures, then Customer may incur an imbalance on one or more pipelines

(Caledonia Pipeline Imbalance) and (ii) both positive and negative inventory

imbalances may occur at the Facility (whether as the result of Caledonia

Pipeline Imbalance of otherwise) that could result in greater or lesser volumes

of Gas residing in the Facility than would otherwise be reflected in the

aggregate of all of the Gas Storage Balance Accounts of all Customers of

Caledonia at the Facility (any such imbalance being sometimes referred to

herein as a Storage Operational Imbalance). In the event that at any given

time either a Caledonia Pipeline Imbalance or a Storage Operational Imbalance

(collectively, Caledonia-Caused Imbalances) should occur, the Parties agree

that such imbalances shall be treated as either a positive or negative

imbalance, as appropriate, in Caledonia’s Gas Storage Balance Account at the

Facility and the Gas Storage Balance Account of Customer under the Service

Agreement shall be unaffected by such occurrences. Caledonia agrees that,

notwithstanding the occurrence of such Caledonia-Caused Imbalances, (a)

Customer will