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. 51 Original Sheet No. 51 : Effective

(b) Caledonia may invalidate any offer to release or any bid subsequent to its

posting on the Internet Web Site which does not conform to the requirements of

this section and the other provisions of this FERC Gas Tariff and such

invalidated offer or bid shall be deemed null and

void.

(c) Any terms and conditions imposed on the offer to release by the Releasing

Customer as provided for in this section must be objectively stated,

reasonable, capable of administration or implementation by Caledonia without

any material increase in burden or expense, applicable to all potential

bidders, not unduly discriminatory, and consistent with the terms and

conditions of this FERC Gas Tariff and Releasing Customer’s Service

Agreement.

(d) A Releasing Customer may re-release to the same Replacement Customer, where

such first release was not subject to posting and bidding pursuant to Section

9.4, for a term of 31 Days or less only if: 1) a period of 28 Days has elapsed

after the first release for 31 Days or less has expired or 2) the Point(s) of

Receipt and/or Point(s) of Delivery for the re-release is different from the

Point(s) of Receipt and/or Point(s) of Delivery of the first release or 3) the

Releasing Customer causes the posting of an offer to release capacity or of a

pre-arranged transaction to be made, and capacity is allocated on the basis of

bids submitted.

(e) If the Releasing Customer retains recall rights, it shall specify the

condition(s) precedent to such recall and any recall. Releasing Customer may,

to the extent permitted as a condition of the capacity release, recall released

capacity (scheduled or unscheduled) at a Timely Nomination cycle and the

Evening Nomination cycle, and recall unscheduled released capacity at the

Intra-Day 1 and Intra-Day 2 Nomination cycles by providing notice to Caledonia

by the following times for each cycle: 8:00 a.m. C.C.T. for the Timely

Nominations cycle; 5:00 p.m. C.C.T. for the Evening Nomination Cycle; 8:00 a.m.

C.C.T. for the Intra-Day 1 Nomination cycle, and 3:00 p.m. C.C.T. for the

Intra-Day 2 Nomination cycle. Notification to Replacement Customers provided

by Caledonia within one hour of receipt of recall notification. The Releasing

Customer shall exercise and administer such recall rights and Caledonia may

rely on the Releasing Customer’s notice and instructions. Releasing Customer

shall indemnify and hold Caledonia harmless from and against all demands,

losses, causes of action, expenses and/or damages resulting from or relating to

Releasing Customer’s exercise of its recall rights and Caledonia’s compliance

therewith including claims by the affected Replacement Customer(s). Caledonia

shall also support the function of reputting by Releasing Customers. Reput

method and rights must be in the Releasing Customer’s offer to release capacity.

(f) Following the awarding of capacity to a Replacement Customer in accordance

with the procedures provided in this section, the Releasing Customer’s rights

and Caledonia’s obligations under the Releasing Customer’s Service Agreement

shall be modified and subject to the capacity rights released and assigned to

the Replacement Customer for the term of such release. Effecting a release

pursuant to the provisions of this section shall constitute Releasing

Customer’s consent and agreement to such amendment or modification of its

existing Service Agreement.