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. 99 Original Sheet No. 99

 

11.3 Injection and Withdrawal Rates. Notwithstanding Sections 11.1 and

11.2 above, Caledonia has designed its System to store, inject and

withdraw Gas based on “normal” operating pressures maintained by the

Transporter at the interconnection with the Storage Facility with

allowances for reasonable fluctuations, and consistent with an hourly

rate of flow as provided for in Section 7. In the event that conditions

on the Transporter’s system vary substantially from this “normal”

design condition coincident with high levels of Customer injection or

withdrawal activity, Caledonia’s capability to inject or withdraw the

quantities set forth in its Service Agreements may be impaired,

resulting in an interruption in service. If this happens, capacity will

be allocated pursuant to Section 6 of the General Terms and Conditions

of this FERC Gas Tariff. Customer agrees to indemnify and hold

Caledonia harmless for any loss caused by any such interruption in

service.

12. TITLE AND RISK OF LOSS

12.1 Customer warrants for itself, its successors and assigns, that

that it will have good title to all Gas Delivered to Caledonia, at the

time of Delivery of such Gas to the Caledonia System (for any reason,

including, without limitation, for storage service and/or loan payback)

and that the Gas it Delivers hereunder shall be free and clear of all

liens, encumbrances, or claims whatsoever; and that it will indemnify

Caledonia and save it harmless from all claims, suits, actions, debts,

amounts, damages, costs, losses and expenses arising directly or

indirectly from or with respect to the title and/or right to Gas

tendered to Caledonia hereunder. Except in those instances when

Caledonia expressly takes title to Customer’s Gas pursuant to its

rights under this Gas Tariff, a Service Agreement or as otherwise

allowed by law, Customer shall at all times retain title to all Gas

Delivered by Customer for its own account to the Caledonia System

(except Gas Delivered by Customer as fuel or loan payback), provided,

however, that such Gas may be commingled with other Gas in the

Caledonia System (subject to Section 12.3 below).