Caledonia Gas And Storage

Original Volume No. 1

Effective Date: 03/23/2009, Docket: RP09-385-002, Status: Effective

First Revised Sheet No. 44 First Revised Sheet No. 44

Superseding: Superseding Original Sheet No. 44

(j) Whether Releasing Customer desires to utilize the

first-come, first-served option for short-term releases described in Section 9.6

below and any minimum terms applicable thereto;

(k) Other special terms and conditions Customer imposes on the

release of its capacity, including, but not limited to, minimum rates, term and

quantity;

(l) For purposes of bidding and awarding, any minimum rates

specified by the Releasing Customer shall include the reservation rate and all

demand surcharges, as a total number or as stated separately;

(m) Whether the release is on a permanent or a temporary basis;

(n) An e-mail address for the Releasing Customer contact

person. It is Customer’s responsibility to update e-mail address information

provided to Caledonia, as necessary; and

(o) A detailed description of any storage inventory that must be

transferred with released storage capacity.

9.2 Intraday Release Quantity. The daily contractual entitlement that

can be released by a Releasing Customer for an intraday release is limited to the

lesser of:

(i) the quantity contained in the offer submitted by the Releasing Customer;

(ii) a quantity equal to 1/24th of the Releasing Customer’s MDIQ (as limited by

ADIQ) and MDWQ (as limited by ADWQ) for the contract to be released multiplied by

the number of hours between the effective time of the release and the end of the

Day.

This allocated daily contractual entitlement shall be used for purposes of

nominations, billing, and if applicable, for overrun calculations.

The MSC that can be released by a Releasing Customer for an intraday release is

limited to a quantity not in excess of the Releasing Customer’s MSC less the

Releasing Customer’s Storage Balance.

9.3 Posting and Bidding Timeline. For the Capacity Release business

process timing model, only the following methodologies shall be supported by

Caledonia and provided to Releasing Customers as choices from which they may select

and, once chosen, shall be used in determining the awards from the bid(s)

submitted. They are: 1) highest rate, 2) net revenue and 3) present value. Other

choices of bid evaluation methodology (including other Releasing Customer defined

evaluation methodologies) can be accorded similar timeline evaluation treatment at

Caledonia’s discretion. However, Caledonia is not required to offer other choices

or similar timeline treatment for other choices. Further, Caledonia shall not be

held to the timeline specified in Sections 9.3(a) and 9.3(b) below should the

Releasing Customer elect another method of evaluation. Should the Releasing

Customer elect another method of evaluation, the timeline specified in Section

9.3(c) below shall apply. The proposed duration of Customer’s release determines

the minimum bid period for the Customer’s offer pursuant to this Section 9.