Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 103 Original Sheet No. 103

14. BILLING AND PAYMENT

14.1 Invoice. Not later than the tenth (10th) Business Day of each

Month Caledonia shall provide Customer (including a Replacement

Customer) an invoice and any required backup data (which may be

transmitted by fax or e-mail) setting forth (i) the charges due for

the preceding Month; (ii) the total quantity of Gas, stated in

Dekatherms, Received from and made available to Customer at the Point

of Injection/Withdrawal (Receipt and Delivery) hereunder during the

preceding Month(s), and the amount due therefor; and if applicable,

(iii) the amount of Customer’s Gas in storage as of the close of the

preceding Month and information sufficient to explain and support any

adjustments made by Caledonia in determining the amount billed.

Invoices will be based on actuals (if available) or best available

data. If actual quantities are not available by the tenth (10th)

Business Day of the month, Caledonia may invoice based on best

available data subject to adjustment to actuals at a later date. All

charges to Customer will be subject to all applicable taxes, if any,

payable on the services provided by Caledonia, including, without

limitation, tax on any Fuel provided by Customer and any ad valorem or

similar tax assessed on Customer’s Gas in the Caledonia System, all of

the foregoing being the responsibility of Customer at all times. All

references to prices, fees, charges, or other monetary amounts will be

in U.S. dollars unless otherwise expressly provided in the applicable

Service Agreement.

14.2 Application of Payments for Released Capacity. Payments to

Caledonia by a Replacement Customer for released capacity shall be

applied as follows, in the following order: (i) Caledonia shall retain

amounts equal to the Replacement Customer’s usage charges; (ii)

Caledonia will credit the balance to Storage Reservation Charges due

from the Replacement Customer; and (iii) Caledonia shall remit the

remaining balance, if any, or shall charge any balance due, to the

Replacement Customer, in accordance with Section 5.11 of the General

Terms and Conditions of this FERC Gas Tariff. If any balance due from

the Replacement Customer remains unpaid, the outstanding balance will

then be billed to the Releasing Customer, provided that the Releasing

Customer is only liable to the extent of its Storage Reservation

Charges specified in the applicable Service Agreement and

corresponding Rate Schedule, plus applicable interest calculated in

accordance with Section 154.501(d) of the Commission’s regulations.