Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 12/05/2007, Docket: RP08- 57-000, Status: Effective

First Revised Sheet No. 12 First Revised Sheet No. 12 : Effective

Superseding: Superseding Original Sheet No. 12

terms and conditions set forth in Section 3.2 of the General Terms and



(3) Bids from qualified successor Customers who desire, in whole or in part,

the capacity to be made available upon the expiration or termination of the

FSS Agreement must be received by Caledonia within the timeframe set forth in

the Open Season. Upon expiration of the open season, Caledonia will select

the highest bid received from a qualified successor Customer and communicate

the terms of the highest bid to Customer, who may elect, within fifteen (15)

Days or such greater time as Caledonia may specify, to execute a renewal FSS

Service Agreement upon the same terms. In determining which bid for the

capacity is the highest, Caledonia will use the present value formula set

forth in Section 3.2 of the General Terms and Conditions.


(4) If Customer does not elect to match the terms of such highest bid, its FSS

Service Agreement will expire at the conclusion of its term and will be deemed

to have all necessary abandonment authorization under the Natural Gas Act with

respect to such service. Caledonia may enter into a new FSS Service Agreement

with the qualified successor Customer who submitted the highest



(5) Caledonia shall retain the right to require a minimum rate or term of

service, which shall be market-based, for bids during any such open



(d) Continuation of Service. If during the open season, Caledonia

receives no bids or rejects all bids, Caledonia and Customer may negotiate for

continuation of service under mutually satisfactory rates, terms, and

conditions. In no event, however, will such continued service be provided at

a rate lower than the highest rate bid by a qualified prospective successor

Customer during the open season.



Prior to the expiration of the primary term or any renewed term of the

Customer’s FSS Service Agreement, Caledonia shall notify Customer to withdraw

all Working Gas quantities held by Caledonia for Customer’s account. If

Customer fails to withdraw all of the Working Gas by the end of the term or

within fifteen (15) Days of termination, then Caledonia may take, free and

clear of any adverse claims or obligations to Customer, title to such Working

Gas quantities as Customer was required to withdraw. Caledonia’s notice may

be given verbally, but shall be confirmed in writing either by facsimile,

email, or via Caledonia’s Internet website.