Caledonia Gas And Storage

First Revised Volume No. 1

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

Original Sheet No. 125 Original Sheet No. 125

31. OPERATIONAL SALES AND PURCHASES OF GAS

31.1 Caledonia may from time to time:

(a) sell Gas that it has retained pursuant to the terms of these

General Terms and Conditions, effective Rate Schedules, or Commission

orders and that it desires to remove from its system for operational

reasons; or

(b) purchase Gas for operational reasons consistent with these General

Terms and Conditions, effective Rate Schedules or Commission orders;

and

and unaccounted for quantities; (2) to maintain system pressure and

line pack; (3) to manage imbalance quantities; (4) to perform other

operational functions of Caledonia in connection with storage and other

similar services; and (5) otherwise to protect the operational

integrity of its system.

31.2 Sales. Sales and/or purchases shall be made on an unbundled

basis. The point of sale shall be at the outlet of Caledonia and the

purchaser of the Gas shall be responsible for any transportation. The

point of any purchase shall be at Caledonia 's Receipt Point(s), at the

points of interconnection with upstream pipelines prior to Receipt into

Caledonia 's system or in Caledonia's Storage Facility. Operational

sales or purchases shall have a lower transportation priority than

firm service.

31.3 Posting. Prior to making any sales pursuant to this Section 31,

Caledonia will post its operational sales quantities for bidding on

its electronic bulletin board, in accordance with the applicable terms

and conditions under which the gas will be sold. Caledonia, reserves

the right, in its sole discretion,

(a) to withdraw its posting;

(b) reject all bids due to operational changes; and

conditions set forth in the posting or contains conditions that are

unacceptable to Caledonia.

31.4 Reports. Caledonia will file an annual report on or before July

1 of each year reflecting the operational sales and purchases for the

twelve month period ending the preceding April 30, and reflecting the

(1) the source of the Gas sold and/or purchased; (2) the date of the

sale and/or purchase; (3) the quantity sold or purchased; (4) the unit

price; and (5) the revenues from the sale or purchase.