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. 49 Original Sheet No. 49 : Effective

discount factor, based on the rate bid (reservation or demand component),

the applicable quantity(ies) and term or period bid upon. In default of

Releasing Customer specifying a method to break ties priority will be given

on a pro rata basis tied to MSC bid.

9.8 Qualification of Prospective Replacement Customer. A prospective

Replacement Customer must be on Caledonia’s approved bidders list before bids

may be posted, must satisfy all requirements of the applicable rate schedule

and the General Terms and Conditions of this FERC Gas Tariff and must have

executed a Capacity Release Umbrella Agreement. To be on the approved bidders

list, the prospective Replacement Customer must satisfy Caledonia’s credit

requirements as outlined in Section 3 and Section 24 of the General Terms and

Conditions, and provide the information required by Section 3 and Section 24 of

the General Terms and Conditions. Such credit appraisal shall be reevaluated

and updated every three (3) months. The prospective Replacement Customer shall

remain on the approved bidders list until such prospective Replacement Customer

(i) notifies Caledonia to the contrary, (ii) no longer meets the credit

qualifications established in Section 3 and Section 24 of the General Terms and

Conditions, or (iii) is suspended from the approved bidders list in the event,

and for such time as, such Replacement or Prearranged Customer fails to pay

part or all of the amount of any bill for service in accordance with Section 8

of the General Terms and Conditions. Caledonia will apply its creditworthiness

criteria to assess the submission. Caledonia will waive the creditworthiness

requirement on an non-discriminatory basis for Replacement Customers and permit

them to submit bids, if the Releasing Customer provides Caledonia with a

guarantee or other form of credit assurance in form and substance satisfactory

to Caledonia of all financial obligations prior to the commencement of service

to the Replacement Customer.

9.9 Nominations. Following its selection, and prior to the flow of Gas, the

Replacement Customer shall be permitted to submit nominations pursuant to the

terms and conditions of the applicable rate schedule and the General Terms and

Conditions of this FERC Gas Tariff.

9.10 Billing. The Replacement Customer shall be billed and make payments to

Caledonia in accordance with the applicable rate schedule, other provisions of

this FERC Gas Tariff and of its Storage Service Agreement incorporating its bid

terms. In accordance with the terms of the release, the Replacement Customer

shall pay or be liable for the usage charges (plus all applicable surcharges,

Fuel Reimbursement, taxes, penalties, etc.) applicable under the relevant rate

schedule attributable to its usage of the released capacity. Caledonia shall

continue to bill the Releasing Customer all applicable charges under its

existing Storage Service Agreement, excluding 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. Invoices sent to the Releasing Customer shall reflect a credit equal

to any reservation charges (plus all surcharges applicable thereto) being

billed to the Replacement Customer for the released capacity rights, or as

otherwise agreed. If the Replacement Customer fails to pay when due all or

part of the amounts credited to the Releasing Customer, Caledonia shall pursue

payment from the Replacement Customer by notifying such customer by registered

letter, return receipt requested, that it has five Days from receipt of such

letter to pay the amount due including any applicable interest. If the

Replacement Customer fails to pay such amount by the