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. 78 Original Sheet No. 78

 

Storage Inventory will be vested in Caledonia in accordance with

Section 9 of this Gas Tariff.

5.17 Caledonia’s Rights to Terminate Temporary Capacity Releases.

(a) In the event of a temporary release for which (1) Caledonia has

given notice of termination of the Releasing Customer’s Service

Agreement because the Releasing Customer no longer satisfies

Caledonia’s credit requirements as outlined in Sections 4 of

Caledonia’s General Terms and Conditions; and (2) the Storage

Reservation Charge specified in the effective Addendum to the

Replacement Customer’s Capacity Release Umbrella Agreement is less than

the level of the Storage Reservation Charge which the Releasing

Customer was obligated to pay Caledonia, then Caledonia shall be

entitled to terminate the Addendum, upon thirty (30) days’ written

notice to the Replacement Customer, unless the Replacement Customer

agrees prior to the end of the said 30-day notice period to pay for the

remainder of the term of the Addendum either (i) the Storage

Reservation Charges and commodity charges at levels which the Releasing

Customer was obligated to pay Caledonia, or (ii) such rate as mutually

agreed to by Caledonia and the Replacement Customer. Replacement

Customer may elect to pay the lesser of the two foregoing options.

Caledonia’s right to terminate the Addendum is subject to Caledonia

providing written notice of termination to the Replacement Customer

within sixty (60) days of the determination by Caledonia that the

Releasing Customer no longer satisfies Caledonia’s credit requirements.

Termination of the Addendum shall not occur prior to termination of the

Releasing Customer’s Service Agreement.

(b) In the event that a Replacement Customer has received thirty (30)

days’ notice of termination of the Addendum to Replacement Customer’s

Capacity Release Umbrella Agreement pursuant to Section 5.17(a) above

for storage service, and there is Gas in storage for Replacement

Customer’s account at the end of such 30-day period because (1)

Replacement Customer’s MDWQ rights were not adequate to withdraw all of

its Gas before the end of such 30-day period, or (2) Caledonia could

not accommodate Replacement Customer’s requested withdrawals because of

capacity constraints, the Addendum shall continue in force and effect

for the sole purpose of withdrawal of said Gas by Replacement Customer

until Replacement Customer’s Storage Inventory is zero. Caledonia shall

require Replacement Customer to withdraw each Gas Day a quantity equal

to the MDWQ, or such other lesser quantity acceptable to Caledonia. The

requirement to withdraw storage quantities shall be suspended on any

Gas Day to the extent that Caledonia cannot accommodate a nomination to

withdraw such storage quantities on such Gas