Caledonia Gas And Storage

First Revised Volume No. 1

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Effective Date: 09/30/2010, Docket: RP10-1032-000, Status: Effective

Original Sheet No. 55 Original Sheet No. 55

 

Parties, and each Party consents to such recording of

telephone calls for the purpose of verifying the commercial terms of

service as verbally agreed to by the Parties. If Caledonia rejects any

service request, Caledonia shall notify the requesting party of the

reason(s) for such rejection. A request for service shall be considered

complete only if all information specified in this

Sections 3 and 4 of these General Terms and Conditions is provided in

writing.

Requests for service may be sent to:

Caledonia Energy Partners, L.L.C.

Attn: Director of Marketing

20329 State Hwy 249, Suite 400

Houston, Texas 77070

Phone: (281) 374-3050

Fax: (281) 374-3088

3.2 Open Season.

(a) Notice of Open Season. Caledonia may post an open season for any

available capacity. Caledonia will post a notice of an open season on

its Internet Web Site for the bidding of such capacity, at least ten

(10) days prior to commencement of the open season. A notice of open

season shall set forth when the open season begins and ends, where

interested parties may submit requests for Firm Storage Service, any

reservations regarding the offering of capacity, the method for

evaluating bids, and how interested parties may obtain forms for

requesting service.

(b) Bidding. During an open season, Caledonia will accept requests

for Firm Storage Service from Qualified Customers. Bids submitted

during an open season will be binding on the bidder from the date of

submission until the end of the binding period, as set forth in the

notice of open season. Capacity will be allocated to Qualified

Customers offering bids which, in Caledonia’s reasonable judgment, can

be anticipated to generate an acceptable economic value for Caledonia.

The method for evaluating bids may include (i) determining the highest

guaranteed revenues anticipated to be produced by the competing bids

when all other terms (“Other Terms”) of such competing bids are

equivalent (e.g., each competing bid being based on a term of service

of one full storage year), (ii) determining the highest unit value of

service when all bids do not contain equivalent Other Terms, or (iii)

an alternative, objective and non-discriminatory method to be

determined by the mutual agreement of the parties. Such method will

be posted prior to the open season and will be applied in a

non-discriminatory manner.