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. 85 Original Sheet No. 85

 

7.3 Transportation Guidelines. The Transporter’s rules, guidelines,

operational procedures and policies, as they may be changed from time

to time, shall define and control the manner in which Gas is Delivered

and Received at the Point of Injection/Withdrawal. Caledonia and

Customer each agree to provide to the other, in as prompt a manner as

reasonable, all information necessary to permit scheduling pursuant to

such requirements. In addition, Caledonia will not be required to begin

injections or withdrawals for a Customer’s account unless and until the

data required for nominations, provided for in Section 9, have been

confirmed by the applicable Transporter to Caledonia.

7.4 Transportation Imbalances. In the event that Caledonia or Customer

Delivers or causes to be Delivered to Transporter at the Point of

Injection/Withdrawal a quantity of Gas not equal to the quantity of Gas

Received or taken by Customer or Caledonia, a “Transportation

Imbalance” may occur. Provided that Caledonia has taken or Delivered

the quantity of Gas nominated by Customer and scheduled by Transporter

as required of Caledonia pursuant to the terms and conditions of this

Gas Tariff and the relevant Service Agreement, Customer shall be liable

for all imbalances under its transportation agreement with

Transporter. Upon notification by Customer or Transporter that a

Transportation Imbalance exists because Caledonia failed to Deliver or

Receive the quantity of Gas nominated by Customer and scheduled by

Transporter in accordance with the terms of this Gas Tariff and the

relevant Service Agreement, the terms of Section 9.8 addressing

Receipt Defaults and Delivery Defaults shall apply. Customer agrees to

use its best efforts to prevent or diminish any occurrences of

Transportation Imbalances.

7.5 Costs and Penalties. Customer shall hold Caledonia harmless for all

costs and penalties which may be assessed on Customer by Transporter

under Customer’s transportation agreement with Transporter, except to

the extent such costs and penalties result directly from the negligence

of Caledonia. Customer and Caledonia shall cooperate with each other

and with the Transporter to verify Delivery and Receipt of the volumes

of Gas Delivered hereunder on a timely basis.

7.6 Downstream and Upstream Transportation. Customer shall be

responsible for transportation to and from the Point of

Injection/Withdrawal and payment of all transportation charges relating

thereto.