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. 57 Original Sheet No. 57 : Effective

17. ASSIGNMENT

Any company that succeeds by purchase, merger or consolidation to the gas

properties of Caledonia or of Customer substantially as an entirety, and any

affiliated successor in interest that acquires from Caledonia the properties of

Caledonia used in interstate commerce in rendering service to Customer, shall

be entitled to the rights and shall be subject to the obligations of its

predecessor in title under the Service Agreement; provided, however, that

Caledonia reserves the right to evaluate and approve the creditworthiness of

the new entity in accordance with Sections 3 and 24 of the General Terms and

Conditions of this Tariff. Customer, Caledonia, and their successors may

assign or pledge the Service Agreement under the provisions or any mortgage,

deed of trust, indenture or similar instrument that it has executed or may

execute hereafter; provided, however, that such mortgage, deed of trust,

indenture or similar instrument shall cover the properties of such Party as an

entirety unless such Party is an affiliated successor in interest, otherwise no

Party shall assign the Service Agreement or any of its rights thereunder unless

it first shall have obtained in writing the consent thereto of the other Party;

provided, however, that Customer may release service rights contracted for

under such Service Agreement pursuant to the conditions, and subject to the

limitations, of Section 9 (Release of Service Rights) of the General Terms and

Conditions. Any direct or indirect assignment of service rights by Customer

under this paragraph shall be made in good faith and not for the purpose of

avoiding the requirements of Section 9.

18. NOTICES

Any notice, demand, offer or other written instrument required or permitted to

be given pursuant to the Service Agreement, except for those provisions in

Caledonia’s Tariff requiring otherwise, shall be in writing signed by the Party

giving such notice and shall be hand delivered or sent by registered letter or

overnight courier provided a receipt signed by the addressee is obtained, or

telexed to the other Party. Unless otherwise specifically provided in the

Service Agreement, any written notice or other communication shall be

sufficiently given or shall be deemed given on the third business Day following

the date on which the same is mailed by registered or certified mail, postage

prepaid. Unless otherwise specified, Notices to Caledonia should be addressed

to:

Caledonia Energy Partners, L.L.C.

2001 Timber Creek RoadFlower Mound, TX 75028

Attn: Mr. Jim Goetz

Phone (972) 691-3332

Facsimile (972) 874-8743

Each Party shall have the right to change the place to which notice shall be

sent or delivered by similar notice or like manner to the other Party. The

effective date of notice issued pursuant to this Agreement shall be the earlier

of the date of addressee’s receipt of such notice or the third business Day

following the date on which the same is mailed by registered or certified mail,

postage prepaid.