Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 79 Original Sheet No. 79

Day. Replacement Customer may also transfer title of Gas remaining in

Replacement Customer’s Storage Inventory to another Customer pursuant

to Section 19 of Caledonia’s General Terms and Conditions. In the

event Replacement Customer fails to withdraw or transfer title to its

entire Storage Inventory within the time required by this Section, the

terms of Section 9 of this Gas Tariff shall apply. Replacement

Customer shall indemnify Caledonia and hold it harmless from all

costs, damages, and liabilities arising out of the failure of

Replacement Customer to remove such Storage Inventory and the disposal

of such Storage Inventory by sale by Caledonia.

6. PRIORITY, SERVICE INTERRUPTION AND OPERATIONAL FLOW ORDERS

6.1 Scheduling Priority of Service. Any Customer executing a Service

Agreement with Caledonia shall be scheduled in the following order of

declining priority:

(a) Firm Storage Service (“FSS”).

(b) Advanced Interruptible Storage Service and Advanced Interruptible

Loan Service, pursuant to Section 6.2, below.

Authorized Overrun Quantities under all Rate Schedules shall be

pursuant to Section 6.3, below

(d) Make-up volumes to correct prior variances between (i) Transporter

and Caledonia under a balancing agreement, (ii) Customer and Caledonia,

and (iii) Customer and Transporter if the variance was due to

Caledonia’s failure to receive or Deliver Customer’s scheduled volumes.

6.2 Advanced Interruptible Storage Service and Advanced Interruptible

Loan Service. Agreements relating to Advanced Interruptible Storage

Service and Advanced Interruptible Loan Service obligations and

extensions of the service shall have priority as follows:

(a) The order of priority relating to service requests for service

under the AISS and AILS Rate Schedules shall be based on the highest

present value to Caledonia over the term of the Service Agreement, as

calculated in accordance with Section 3.2, above.

(b) Should two or more requests under Advanced Interruptible Storage

Service or Advanced Interruptible Loan Service by Customers have the

same priority, capacity will be allocated to each Customer on a pro

rata basis.