Honeoye Storage Corporation

Original Volume No. 1A

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Effective Date: 06/01/2002, Docket: RP00-478-001, Status: Effective

Original Sheet No. 106B Original Sheet No. 106B : Effective


(e) the quantity of Gas required to remedy the operational condition requiring

the issuance of the OFO; and


(f) any other terms Seller may reasonably require to ensure the effectiveness

of the OFO.


16.5 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, and 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 16.5, 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.


16.6 Seller's Liability for OFO's. 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 OFO's, 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 OFO's are issued.


17. System Inventory Management


In the event that Seller is required to sell natural gas in order to manage its system, Seller

may post its need to sell gas on its EBB. Included in such posting shall be:


(a) the quantity of gas to be sold;


(b) any minimum quantity for bidding;


(c) the date and time when all bids shall be due;


(d) the date(s) when such gas shall be sold;


(e) any minimum or maximum daily quantity to be sold;


(f) the point where the gas will be sold; and