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. 52 Original Sheet No. 52 : Effective

(g) The offer to release by a Customer under Rate Schedule FSS must specify the

quantities of MSC, MDIQ (and associated ADIQ limits), MDWQ (and associated ADWQ

limits) or rights offered, and actually available on the effective date of the

assignment, and the exercise of which rights, in conjunction with Releasing

Customer’s exercise of its retained rights, will not violate any maximum or

minimum quantity requirements or limitations applicable under the Rate Schedule

or the respective Service Agreements. Releasing Customer shall be responsible

for ensuring, if applicable, whether by the withdrawal or transfer-in-place of

a portion of its Storage Balance or otherwise as required, that such storage

capacity, and the corresponding ability to inject/withdraw Gas up to the

Maximum Storage Capacity released, in accordance with the terms and conditions

of the Rate Schedule and within the time remaining in the injection and/or

withdrawal period, as applicable, shall be available upon the commencement of

the release. A Replacement Customer under Rate Schedule FSS must comply with

all obligations imposed under such Rate Schedule and its rights to store,

withdraw and/or inject Gas will be subject to the provisions thereof. If the

Releasing Customer proposes to, or requires a transfer-in-place of the portion

of its Storage Balance in conjunction with its release and assignment of

storage capacity rights, it shall so specify in its offer to release and such

transfer shall be implemented contemporaneously with the release and assignment

subject to compliance with the provisions of Section 13 of these General Terms

and Conditions. The Replacement Customer must withdraw the portion of its

Maximum Storage Capacity by the end of the term of the release. In lieu of

withdrawing the portion of its Storage Balance, the Replacement Customer can

also attempt to effect a transfer of the portion of its Storage Balance to

another storage service Customer as provided in Section 13 of these General

Terms and Conditions. If the Replacement Customer fails to withdraw or

transfer the portion of its Storage Balance by the end of the term of its

release, title to the portion of Customer’s remaining Storage Balance will be

vested, at no cost, to the Releasing Customer which released its capacity to

the Replacement Customer on a temporary basis.

11. FORCE MAJEURE

Neither Caledonia nor Customer shall be liable in damages to the other for any

act, omission or circumstance occasioned by or in consequence of any acts of

God, strikes, lockouts, acts of the public enemy, wars, blockades,

insurrections, riots, epidemics, landslides, lightning, earthquakes, fires,

storms, floods, washouts, arrests and restraints of rulers and peoples, civil

disturbances, explosions, breakage or accident to machinery or lines of pipe,

the binding order of any court or governmental authority which has been

resisted in good faith by all reasonable legal means, and any other cause,

whether of the kind herein enumerated or otherwise, not reasonably within the

control of the Party claiming suspension and which by the exercise of due

diligence such Party is unable to prevent or overcome. Failure to prevent or

settle any strike or strikes shall not be considered to be a matter within the

control of the Party claiming suspension.

Such causes or contingencies affecting the performance hereunder by Caledonia

or the Customer, however, shall not relieve either Party of liability in the

event of its concurring negligence or in the event of its failure to use due

diligence to remedy the situation and to remove the cause in an adequate manner

and with all reasonable dispatch, nor shall such causes or contingencies

affecting such performance relieve Customer from its obligations to make

payments of amounts then due hereunder.