Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 70 Original Sheet No. 70

accordance with the provisions of this Section and determine the best

bid in accordance with the timelines set forth in Section 5.5 herein.

Caledonia shall notify Releasing Customer, the best bidder, and any

Prearranged Customer of such determination in accordance with the

timelines set forth in Section 5.5 herein. If there is a Prearranged

Customer, it may exercise its right to match such best bid by

providing written notice of such exercise to Caledonia and Releasing

Customer in accordance with the timelines set forth in Section 5.5

herein. After the Replacement Customer is selected, Caledonia will

finalize an appropriate Addendum to the Capacity Release Umbrella

Agreement in the form contained in this FERC Gas Tariff. Caledonia

will provide a copy of this Addendum to the Replacement Customer via

facsimile, at which time the Replacement Customer will have the same

rights and obligations as any other existing Customer on Caledonia’s

System. Following implementation of the release, Caledonia shall post

notice of the winning bidder on the Internet Web Site.

5.8 Best Bid. When Caledonia makes awards of capacity for which there

have been multiple bids meeting minimum conditions, Caledonia shall

award the bids, best bid first, until all offered capacity is awarded.

The capacity being awarded represents the Maximum Daily Injection

Quantity, Maximum Daily Withdrawal Quantity, or Maximum Storage

Quantity. These quantities are separate parts of the capacity and are

awarded until one of the quantities is fully awarded, at which point

all capacity is deemed to be fully awarded. Caledonia shall evaluate

and determine the best bid among those otherwise consistent with any

terms and conditions specified by the Releasing Customer as follows:

(a) Caledonia shall apply the standard or criteria for such

determination specified by the Releasing Customer, including the

standard to be used for breaking ties. Any standard or criteria so

specified must be objective, economic, not unduly discriminatory, not

contrary to applicable provisions of this FERC Gas Tariff, applicable

to all Potential Replacement Customers and require Caledonia applying

such standards to exercise no more than a ministerial function. The

Releasing Customer shall indemnify and hold Caledonia harmless from and

against all demands, losses, claims, expenses, causes of action and/or

damages suffered or incurred by Caledonia arising out of or related to

any determination of a “best bid” pursuant to a standard specified,

supplied, approved or provided by Releasing Customer.

(b) In default of Releasing Customer specifying a bid evaluation

standard, Caledonia shall determine the bid or bids generating the

highest rate for service that Caledonia finds acceptable.

5.9 Qualifications of Replacement Customer.