Blue Lake Gas Storage Company

First Revised Volume No. 1

Effective Date: 11/01/2007, Docket: RP08- 17-000, Status: Effective

First Revised Sheet No. 155D First Revised Sheet No. 155D : Effective

Superseding: Original Sheet No. 155D

GENERAL TERMS AND CONDITIONS

(Continued)

17.6 Failure to Comply with OFO. If Customer or agent fails to

comply with the terms of an OFO, for any reason other than force

majeure on an upstream or downstream pipeline, such Customer

shall be: (a) liable for any damages including, but not limited

to direct, consequential, exemplary or punitive damages incurred

by Seller or any other affected party as a result of such

failure. Notwithstanding anything to the contrary in this

Section 17.6, if Customer is required to make a nomination

pursuant to an OFO, unless critical circumstances dictate

otherwise, no damages and/or penalties will be assessed unless

Customer is given the opportunity to correct the circumstances

giving rise to the OFO.

17.7 Seller's Liability for OFOs. Seller shall not be liable to any

person for any costs, damages or other liability associated with

the issuance of, or the failure to issue, any OFOs, provided,

however, Seller shall be liable for acts of negligence or undue

discrimination, such standards to be judged in light of the

emergency conditions under which OFOs are issued.

17.8 Seller's Scheduling Authority. Seller shall have the right to

act as a scheduling agent for a Customer's account if (a) the

Customer refuses to schedule Gas injections or withdrawals as

specified by an OFO issued pursuant to Section 17.4(a); or

(b), above, if Seller requires additional quantities in less

than the twenty-four (24) hour notice period normally required

for an OFO, and the Customer has refused a verbal request to

schedule the required quantity of Gas.