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. 117 Original Sheet No. 117

 

23.5 Financial Assurances. Notwithstanding, and in addition to but not

in limitation of, any other provision in this Gas Tariff or any Service

Agreement, if at any time an Event of Default by Customer has occurred

and is continuing, Caledonia shall have the right to exercise its

rights and remedies in respect of any Financial Assurance provided by

Customer and exercise its rights and remedies in respect of any lien or

security interest held by Caledonia on Gas stored in the Caledonia

System for Customer’s account, and to apply the proceeds of the private

sale of such Gas to satisfy any amounts owing by Customer to Caledonia

under any Service Agreement. Caledonia’s termination notice rendered in

accordance with these General Terms and Conditions shall be deemed

sufficient notice for all purposes, including, without limitation, for

Miss. Code Ann. Title 75,Chapters 7 and 9 or any other version of the

Uniform Commercial Code (or similar law) as adopted in any relevant

jurisdiction.

23.6 Early Termination. If an Event of Default by a Defaulting Party

is not remedied on or before the Early Termination Date, and results

in the Non-Defaulting Party’s election to terminate Service Agreements

pursuant to Section 23.3 above, the Defaulting Party, by its failure to

remedy the Event of Default, shall be deemed to have consented to such

termination of service. If Caledonia is the Non-Defaulting Party, it

will notify the FERC of such termination of service at least thirty

(30) days prior to the Early Termination Date and all of Customer’s

service rights may be terminated on the Early Termination Date and any

payment obligations for services not rendered after the Early

Termination Date will likewise be terminated. Caledonia will have the

right to sell any terminated service to a third party as of the Early

Termination Date. Customer will remain liable for all such obligations

accruing up to and including the Early Termination Date. Termination of

Service Agreements shall be effectuated as follows:

(a) The termination will occur on the Early Termination Date. All

Service Agreements then outstanding (except currently performing

Service Agreements, as set forth above) will be terminated as of the

Early Termination Date in accordance with these termination provisions

and, except as otherwise provided in this Section 23.6, no further

injections or withdrawals of Gas shall thereafter be made under such

terminated Service Agreements.

(b) With regard to Customer’s Storage Inventory in the Caledonia

System: