Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 83 Original Sheet No. 83

physical facility and the preservation of physical assets and their

performance, the overall operating performance of the entire physical

facility as an entity, and the maintenance (on a reliable and

operationally sound basis) of total Storage Facility deliverability

and the quality of Gas Delivered. Caledonia shall post a notice on its

Internet Web Site specifying the factors that caused the OFO to be

issued, to the extent such factors are known. Caledonia shall also

provide such notification via e-mail communication to those Customers

who have submitted a request, and provided e-mail address information

for at least one contact person, via Caledonia’s Internet Web Site to

receive e-mail notification of Critical Notices issued by Caledonia.

(g) Termination of OFO. Caledonia shall lift any effective OFO

promptly upon the cessation of operating conditions that caused the

relevant System problem. After Caledonia has lifted the OFO, Caledonia

shall post a notice on its Internet Web Site specifying the factors

that caused the OFO to be issued and then lifted, to the extent such

factors are known. Caledonia shall also provide such notification via

e-mail communication to those Customers who have submitted a request,

and provided e-mail address information for at least one contact

person, via Caledonia’s Internet Web Site to receive e-mail

notification of Critical Notices issued by Caledonia.

(h) Penalties. All quantities tendered to Caledonia and/or taken by

Customer on a daily basis in violation of an OFO shall constitute

unauthorized Receipts or Deliveries for which an OFO penalty charge

shall be assessed. The OFO penalty charge for each Dekatherm of Gas by

which Customer deviated from the requirements of the OFO shall be equal

to the higher of (i) three (3) times the applicable Daily Reference

Price, for the Gas Day on which the deviation occurred or (ii) $25,

multiplied by the quantity by which the Customer deviated from the

requirements of the OFO.

(i) Any penalty revenue collected, net of administrative costs, by

Caledonia pursuant to Section 6.6(h) shall be credited to those Firm

and Interruptible Customers that did not incur OFO penalties pursuant

to this Section 6.6(i) in the Month for which OFO penalty revenues

were received (“Non-Offending Customers”), based on the ratio of the

total charges paid during that Month by the Non-Offending Customer to

the sum of the total charges paid during that Month by all

Non-Offending Customers. Such credits shall be calculated for each

Month of the twelve (12) Month period ending August 31 of each year,

and will be included on the Non-Offending Customer’s invoice for the

Month following the date of the final Commission order approving

Caledonia’s penalty disbursement report;