Caledonia Gas And Storage

Original Volume No. 1

Effective Date: 05/01/2007, Docket: CP05- 15-003, Status: Effective

Original Sheet No. 54 Original Sheet No. 54 : Effective

(ii) The purchase does not cause either Customer to exceed its MSC or MISC, as

applicable and as specified in the Customer’s Service Agreement, or cause

either Customer’s balance to go below zero or above zero in the case of a loan

of Gas.

(b) Caledonia will recognize the transfer for purposes of computing available

Storage Balance on a prospective basis within twenty-four (24) hours after

receiving the notification. In the event the required written verification is

not received, the transfer will no longer be recognized and the Storage Balance

for each Customer will be restated to reflect the reversal of the

transfer.

14. PENALTIES

14.1 Customer shall be liable for and shall be required to reimburse Caledonia

for all penalties, charges and fees which Caledonia is required to pay to

Transporter(s) as a consequence of Customer’s actions. The recovery of such

penalty amounts shall be on an as-billed basis.

14.2 In addition to the payment of the penalties set forth in Section 14.1

herein, the responsible Customer shall also be liable for, and shall reimburse

Caledonia, for all costs incurred by Caledonia as a consequence of such

Customer’s actions.

14.3 Crediting of Penalty Revenues – Caledonia shall credit the actual penalty

revenues, net of Caledonia’s costs related to the penalty event, received by

Caledonia from Customers in any calendar year, by invoice credit to all

Customers who did not incur penalty charges in the Month for which such

revenues were received. Such credits shall be made on a pro rata basis, based

on a Customer’s total reservation and commodity charges paid each Month. Such

credit shall be made not later than the March accounting Month statement sent

subsequent to the calendar year-end by Caledonia. Any revenue collected and

retained by Caledonia pursuant to this section shall accrue interest calculated

pursuant to Section 154.501(d) of the Commission’s Regulations.