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. 95 Original Sheet No. 95

 

(b) Transfer of Title. Pursuant to the provisions of Section 9.9(a),

and subject to Section 9.9(c) below, at Caledonia’s sole option and

demand, Customer shall transfer title to Holdover Gas to Caledonia,

free and clear of all liens, encumbrances, and adverse claims of any

kind, at a price per Dth equal to the Current Market Price of such Gas,

less Caledonia’s costs related to Customer’s failure to timely remove

its Gas, with “Current Market Price” being measured on the date on

which Caledonia liquidates Customer’s Holdover Gas and which is the

lesser of (i) the NYMEX Prompt Month settlement price, as adjusted for

the applicable basis differential plus applicable transportation, and

(ii) the “balance of month” market price as reflected by

Intercontinental Exchange (“ICE”) (or the open market price if ICE

has no relevant balance of month price information available on a

timely basis).

(c) Force Majeure. The provisions of Sections 9.9(a) and 9.9(b) are

subject to the provisions of this Section 9.9(c). To the extent

Customer is unable to withdraw its Storage Inventory or Park Balance

under a Service Agreement before the end of the applicable service

period by reason of a suspension of withdrawal rights during the

service period caused by Force Majeure declared by Caledonia or other

curtailment of such rights declared by Caledonia, Customer shall be

allowed to nominate to remove all remaining inventories under such Firm

Storage Service Agreement, in accordance with Customer’s MDWQ, and

Caledonia shall refrain from exercising its rights under Sections

9.9(a) and 9.9(b), for a reasonable time after the expiry of such Force

Majeure or curtailment period (i.e., the same number of Gas Days as

Customer’s withdrawal rights were subject to such Force Majeure and/or

curtailment period during the initial service period); provided,

however, that after such reasonable time the terms of Sections 9.9(a)

and 9.9(b) shall once again apply.