Caledonia Gas And Storage

Original Volume No. 1

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

Original Sheet No. 18E Original Sheet No. 18E : Effective


will notify any affected Customer receiving Advanced Interruptible Loan

Service that they are required to reduce their negative Interruptible Loan

Balance(s) over the period specified in the notice. Such notice shall be

issued to Customers, via facsimile or email, on a price basis, where lower

price services will be noticed before higher price services. At a maximum,

Customers will have one (1) Day in which to comply with the



(b) If Customer fails to comply with the notice given in accordance

with Section 7(a) of this AILS Rate Schedule, Caledonia may cash out the

negative Advanced Interruptible Loan Balance quantity that Customer was

advised, but failed to reduce or eliminate at replacement cost of the Gas plus

ten percent (10%) for any negative Advanced Interruptible Loan Balances not




(a) Customer’s AILS Service Agreement(s) and the respective

obligations of the Parties hereunder are subject to all valid laws, orders,

rules and regulations of duly constituted authorities having jurisdiction, and

are conditioned upon the issuance, by FERC and any state or local governmental

agency having jurisdiction, of requisite authorization for Caledonia to

provide the loan service contemplated herein and to construct and operate the

gas storage facilities necessary to provide such loan service and for any

connected pipeline to transport natural gas to/from the Point(s) of

Receipt/Delivery necessary to effect the loan service provided herein.


(b) Caledonia shall have the right to propose to FERC or any other

governing regulatory body such changes in its rates and terms of service as it

deems necessary, and this AILS Service Agreement shall be deemed to include

any changes which are made effective pursuant to an order or regulation or

provisions of law, without prejudice to Customer’s right to protest the same;

provided however, that any negotiated rates between Caledonia and its

Customer(s) shall remain in effect during the term of the AILS Service




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

Customer’s AILS Service Agreement, Caledonia shall notify Customer to inject

all Working Gas quantities previously loaned but not returned to Caledonia for

Customer’s account. If Customer fails to return all of the Working Gas by the

end of the term or within fifteen (15) Days of termination, then Caledonia

will replace such quantities and charge customer the replacement cost of the

Working Gas quantities plus 10% of the replacement cost. Caledonia’s notice

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

email, or via Caledonia’s Internet website.