Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 100 Original Sheet No. 100

12.2 Risk of Loss. As between Customer and Caledonia, Customer shall

be in control and possession of the Gas prior to and including the time

of its Delivery to Caledonia at the Point of Injection/Withdrawal

(Receipt) and at the time of and after Re-Delivery by Caledonia to

Customer at the Point of Injection/Withdrawal (Delivery). Customer

shall bear the risk of loss or contamination of such Gas (i) while the

gas is in the control and possession of Customer or its designated

Transporter, (ii) resulting from any Force Majeure event described in

Section 16 and any failure of equipment resulting therefrom, except to

the extent any loss or contamination of Gas is caused by Caledonia’s

intentional or grossly negligent act or omission, and (iii) resulting

from any third party action or inaction, and Customer shall indemnify

and hold Caledonia harmless from any damage or injury caused thereby.

Caledonia shall be in control and possession of the Gas after the

Receipt of the same at the Point of Injection/Withdrawal (Receipt) and

until Re-Delivery by Caledonia to Customer at the Point of

Injection/Withdrawal (Delivery). The risk of loss or contamination of

Gas injected into, parked or stored in and withdrawn from storage shall

remain with Customer, and Caledonia shall not be liable to Customer for

any loss or contamination of Gas, except to the extent caused by the

intentional or grossly negligent acts or omissions of Caledonia. Any

losses or contamination of Gas, unless due to the intentional or

grossly negligent act or omissions of Caledonia, shall be shared

proportionally by all Customers, based on each Customer’s Storage

Inventory, Park Balance and/or Loan Balance, as applicable. In the

event of loss or contamination of Gas for which Caledonia is

responsible under this Section 12.2, Caledonia shall have the option,

in its sole discretion, to either (a) pay Customer for such Gas (at the

then current market value as determined in accordance with the

applicable Reference Price) or (b) replace such Gas with an equivalent

quantity of Gas. In no event will Caledonia’s liability for any loss or

contamination of Gas exceed the current market value of the Gas at the

time of such loss or contamination.