Hardy Storage Company, LLC

Original Volume No. 1

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Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective

Original Sheet No. 23 Original Sheet No. 23 : Effective






(g) If Customer carries over quantities beyond April 1 in excess of

the 50% of a Customer’s HSCQ limitation set forth in Section 4(d) of this

Rate Schedule, any such quantities automatically shall be forfeited by

Customer to Seller, free and clear of all liens and encumbrances. Seller

shall post such forfeited quantities on its EBB as gas available for sale to

the highest bidder within a 24-hour notice period. Such posting will provide

as a condition of sale that such gas be withdrawn from storage within a

period of time to be specified in the notice. Automatic forfeiture will only

take place where operational concerns require the physical withdrawal of

excess supplies of gas. Upon receipt of payment, Seller shall treat the

forfeited gas proceeds as Penalty Revenues as defined in Section 19.3 of the

General Terms and Conditions.


(h) All penalties and charges assessed under this Section shall be

assessed and paid in addition to all applicable storage rates and charges

under this Rate Schedule, including any overrun charges.


(i) In the event Customer seeks to avoid any penalty provided for in

this Section on the ground that such charge was incurred because of a force

majeure event as defined in Section 15 (Force Majeure) of the General Terms

and Conditions, Customer shall document such force majeure event to Seller.

Seller shall waive penalties to the extent that it determines that the

penalty was caused by a bona fide force majeure event as defined in said

Section 15.


(j) Seller may waive its right to collect all or any portion of

penalties assessed against Customer or its right to retain all or any portion

of Shipper's gas, provided that any such waiver is granted in a

nondiscriminatory manner.




All of the General Terms and Conditions are applicable to this Rate

Schedule and are hereby made a part hereof.