Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 101 Original Sheet No. 101

12.3 Title. The Parties acknowledge and agree that Gas which is

Delivered to the Caledonia System pursuant to any Service Agreement is

a “fungible good” (as that term is defined in Miss. Code Ann. §

75-1-201(18)), and that the unit of Gas is one (1) Dth. Customer

understands and agrees that any Gas Delivered shall be commingled with

all other gas previously or subsequently Delivered and stored at the

Caledonia System as permitted by Miss. Code Ann. § 75-7-207(a) and

that Customer will own such fungible goods in common with all other

Caledonia customers of the Caledonia System as provided by Miss. Code

Ann. § 75-7-207(b). “Receipts” (as that term is used in Miss. Code

Ann. §75-7-207(b)) shall be based on confirmations of Delivery by the

Transporter Delivering gas to the Caledonia System. Caledonia will not

be obligated to Deliver to Customer the same Gas that was Delivered to

Caledonia by or on behalf of Customer, but shall be obligated to

Deliver only such quantity of Gas as the Customer is entitled to

Receive from Caledonia in accordance with this Gas Tariff and the

relevant Service Agreement. Without limiting Caledonia’s obligation

set forth in the immediately preceding sentence, Caledonia shall be

entitled to use all quantities of Gas Delivered to the Caledonia System

for any and all purposes, including, without limitation, for Delivery

or transfer thereof to other Customers to satisfy Caledonia’s

obligations under Service Agreements with such other Customers.

Customer acknowledges that the Service Agreements, nominations,

invoices or any other document issued pursuant to the Service

Agreements are non-negotiable instruments under Miss. Code Ann. §

75-7-104(b) and (c).

13. MEASUREMENT

13.1 The quantity of Gas Received and Delivered hereunder shall be

measured (i) in accordance with the applicable Transporter’s pipeline

tariff, if the Transporter is the party responsible for custody

transfer at the applicable Point of Injection/Withdrawal (Receipt and

Delivery), or (ii) in accordance with Sections 13.2 below, if Caledonia

is the party responsible for custody transfer at the applicable Point

of Injection/Withdrawal.