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. 48 Original Sheet No. 48 : Effective

capacity and, in lieu of permitting bids during the otherwise applicable

posting period, award the capacity to the bidder which submits first in time

a valid bid meeting any minimum terms specified by the Releasing Customer.

Any bid submitted by a Replacement Customer shall include an e-mail address

for at least one contact person, and it is the Customer’s responsibility to

update e-mail address information provided to Caledonia, as necessary. A

bidder may not have more than one eligible bid for the same release offer at

any time. Bids shall be binding until written or electronic notice of

withdrawal is received by Caledonia before the end of the bid period. Bids

cannot be withdrawn after the bid period ends. Once a bid is withdrawn, that

bidder may only submit a new bid pursuant to that release offer if it is at a

higher rate than the withdrawn bid. Caledonia shall evaluate the bids in

accordance with the provisions of this section and determine the best bid in

accordance with the timelines set forth in Section 9.3 herein. Caledonia shall

notify Releasing Customer, the best bidder, and any pre-arranged designated

Replacement Customer of such determination in accordance with the timelines set

forth in Section 9.3 herein.

If there is a pre-arranged designated Replacement Customer, it may exercise its

right to match such best bid by providing written notice of such exercise to

Caledonia and Releasing Customer in accordance with the timelines set forth in

Section 9.3 herein. After the Replacement Customer is selected, Caledonia will

finalize an appropriate Addendum to the Capacity Release Umbrella Agreement in

the form contained in this FERC Gas Tariff. Caledonia will provide a copy of

this Addendum to the Replacement Customer via facsimile, at which time the

Replacement Customer will have the same rights and obligations as any other

existing Customer on Caledonia’s system. Following implementation of the

release, Caledonia shall post notice of the winning bidder on the Internet Web Site.

9.7 Best Bid. When Caledonia makes awards of capacity for which there have

been multiple bids meeting minimum conditions, Caledonia shall award the bids,

best bid first, until all offered capacity is awarded. The capacity being

awarded represents the Maximum Daily Injection Quantity (as limited by the

ADIQ), Maximum Daily Withdrawal Quantity (as limited by the ADWQ), or Maximum

Storage Capacity. These quantities are separate parts of the capacity and are

awarded until one of the quantities is fully awarded, at which point all

capacity is deemed to be fully awarded. Caledonia shall evaluate and determine

the best bid among those otherwise consistent with any terms and conditions

specified by the Releasing Customer as follows:

(a) Caledonia shall apply the standard or criteria for such determination

specified by the Releasing Customer, including the standard to be used for

breaking ties. Any standard or criteria so specified must be objective,

economic, not unduly discriminatory, not contrary to applicable provisions of

this FERC Gas Tariff, applicable to all Potential Replacement Customers and

require Caledonia in applying such standard to exercise no more than a

ministerial function. The Releasing Customer shall indemnify and hold

Caledonia harmless from and against all demands, losses, claims, expenses,

causes of action and/or damages suffered or incurred by Caledonia arising out

of or related to any determination of a "best bid" pursuant to a standard

specified, supplied, approved or provided by Releasing Customer.

(b) In default of Releasing Customer specifying a bid evaluation standard,

Caledonia shall determine the bid or bids generating the highest net present

value, using a 10%