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. 93 Original Sheet No. 93

 

(b) Firm Storage; Parking; Loaning. Except as provided in Sections

9.8(c) and 9.8(d) below, in the event of a Defaulted Transaction, the

Parties shall enter into a Corresponding Transaction or, if the Parties

cannot agree to the terms of a Corresponding Transaction (after

attempting in good faith to do so), the non-defaulting Party may

collect damages from the defaulting Party equal to the greater of (A)

the absolute value of the product of (x) the Default Quantity

multiplied by (y) the spread between the Daily Reference Price and the

NYMEX Prompt Month settlement price for the Gas Day on which the

relevant Nomination was made, as adjusted for the applicable basis

differential plus applicable transportation, and (B) the absolute value

of the product of (x) the Default Quantity multiplied by (y) the spread

between the Daily Reference Price and the NYMEX Prompt Month settlement

price for the Gas Day on which the physical gas was actually supposed

to flow pursuant to such nomination, as adjusted for the applicable

basis differential plus applicable transportation. In addition to the

foregoing and notwithstanding anything else in any Service Agreement to

the contrary, Customer shall at all times remain obligated for the

Storage Reservation Charge associated with Customer’s FSS Service

Agreement(s).

(c) Interruptible Storage. If the Defaulted Transaction is an ISS

Transaction, the Parties shall use commercially reasonable efforts to

re-nominate and Deliver or Receive the nominated gas, as the case may

be, at each Party’s earliest possible convenience.

(d) After Termination or Expiration of Service Period. If the Defaulted

Transaction is a default by Customer and results in: (i) Customer’s

Storage Inventory remaining in the Caledonia System after the end of a

service period (if the relevant Service Agreement is for either FSS,

ISS, or IPS) or (ii) Customer failing to re-Deliver all loaned

quantities on or before the last Gas Day of the service period (if the

relevant Service Agreement is for Loaning Service), Caledonia shall

have the continuing option to assert, in addition to the other remedies

set forth in this Section 9.8, any remedies otherwise available at law

or equity or as set forth in this Gas Tariff, including without

limitation those remedies set forth in the applicable Rate Schedules

and applicable Service Agreements.