Caledonia Gas And Storage

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 123 Original Sheet No. 123

26. OFF-SYSTEM PIPELINE CAPACITY

26.1 From time to time, consistent with FERC policy, Caledonia may

enter into transportation and/or storage agreements with other

interstate or intrastate pipeline companies (“off-system pipeline”).

In the event that Caledonia acquires capacity on an off-system

pipeline, Caledonia will use such capacity for operational reasons to

transport gas which will not physically or contractually enter its

Storage Facility and will only render service to Customers on the

acquired capacity pursuant to Caledonia’s FERC Gas Tariff and subject

to Commission-approved rates, as such tariff and rates may change from

time to time. For purposes of transactions entered into subject to

this Section 26, the “shipper must have title” requirement is waived.

27. REGULATION

27.1 The operation of the provisions of this Tariff shall be subject

to any and all governmental statutes and all lawful orders, rules, and

regulations affecting the storage, injection, withdrawal or loaning of

Gas hereunder or the equipment required in connection with such

storage, injection, withdrawal or loaning of Gas. It is understood

that performance under any Agreement shall be subject to all valid

laws, orders, rules and regulations of duly constituted governmental

authorities having jurisdiction or control of the matter related

hereto. Should either of the parties, by force of any such law, order,

rule or regulation, at any time during the term of the Agreement be

ordered or required to do any act inconsistent with the provisions

thereof, then for that period only during which the requirements of

such law, order, rule or regulation are applicable, the Agreement shall

be deemed modified to conform with the requirement of such law, order,

rule or regulation; provided, however, nothing herein shall alter,

modify or otherwise affect the respective rights of the parties to

cancel or terminate the Agreement under its terms and conditions.

28. CHOICE OF LAW

28.1 Unless otherwise specifically stated in the Service Agreement,

interpretation of the provisions of all Service Agreements or other

agreements entered into between Customer and Caledonia, including any

provisions of this Tariff related to such agreements, and any disputes

arising from such agreements, shall be governed by the law of the State

of Texas.