Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 121 Original Sheet No. 121

24. CUSTOMER TERMINATION OPTION

24.1 Customer shall have the right, subject to the terms of this

Section 24, at any time and from time to time to terminate any one or

more IPS, AILS, and ILS Service Agreements then outstanding (each, a

“Designated Service Agreement”) by providing written notice to

Caledonia and establishing an early termination date, which date shall

be the first Gas Day of the Month immediately following delivery of

such written notice (the “Customer Early Termination Date”). Customer’s

right to terminate a Designated Service Agreement is conditioned on

the following: (1) the “Beginning Date of Service” under the

Designated Service Agreement having not yet occurred, and (2) Caledonia

and Customer agreeing to the terms of a settlement payment (“Settlement

Payment”) for such Designated Service Agreement that results in

Caledonia being financially indifferent to the termination of such

Service Agreement, as determined by Caledonia in its sole but

reasonable discretion (with “financially indifferent” meaning to

preserve for Caledonia the economic equivalent of any payment,

Delivery, or service under the Designated Service Agreement that would,

but for the occurrence of the early termination, have been required of

the Parties after the early termination). In addition to the Settlement

Payment, Customer shall owe to Caledonia a surcharge equal to $0.05 per

Dth of MSQ, MPQ, or MLQ, as applicable, in respect of the Designated

Service Agreement, to defer the costs of Caledonia’s administration and

execution risk associated with the termination and re-trading of the

service agreement (“Surcharge”). If Customer designates a Customer

Early Termination Date and all conditions stated above are met, each

Designated Service Agreement shall be terminated as of the Customer

Early Termination Date. If Customer desires to terminate one or more

Designated Service Agreements on the same Customer Early Termination

Date, Settlement Payments may be netted or aggregated, as appropriate,

to a single final amount payable by one Party to the other Party (the

“Final Settlement Payment”), and the Surcharge may also be netted or

aggregated, as appropriate, into, and become part of, the Final

Settlement Payment. Caledonia shall deliver to Customer a statement

indicating the Final Settlement Payment, together with supporting

calculations, and the Party owing such Final Settlement Payment shall

pay such amount before 5 P.M. CCT on the second (2nd) Business Day

following the delivery of such statement to Customer.

25. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW FACILITIES

25.1 Caledonia shall not be required to construct, modify, expand or

acquire any facilities to enable Caledonia to perform any requested

Service under any Service Agreement.