ILS RATE SCHEDULE INTERRUPTIBLE LOAN SERVICE

1. AVAILABILITY

This Rate Schedule is available to any Shipper for the purchase of

Interruptible Gas loan service from Freebird, provided

that:


 

(a) Freebird has determined that it has operationally available and

uncommitted storage capacity, injection or withdrawal capacity to perform the

service Shipper has requested;


 

(b) Freebird has determined that the service Shipper has requested under this

Rate Schedule will not interfere with efficient operation of its System or

with Firm service;


 

(c) Shipper and Freebird have executed a Hub Services Agreement under this

Rate Schedule;


 

(d) Shipper accepts responsibility for arranging any upstream and downstream

transportation service required for utilization of the loan service provided

under his Rate Schedule; and


 

(e) Freebird shall not be required to construct, modify, expand or acquire

any facilities to enable Freebird to perform any requested service under

this RateSchedule.


 

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This Rate Schedule shall apply to all Interruptible loan service rendered

by Freebird to Shipper through use of Freebird’s System pursuant to an

executed Hub Services Agreement. Interruptible loan service rendered by

Freebird to Shipper under this Rate Schedule shall consist of the advancement

to Shipper, upon nomination and subsequent confirmation, of daily quantities

of Gas in storage not to exceed Shipper’s MDWQ up to Shipper’s MLQ, as stated

in the Hub Services Agreement with Shipper, provided that all Firm service

nominations for withdrawal have been satisfied and System needs allow.

Shipper agrees to replace the borrowed quantities of Gas to Freebird at a time

to be agreed upon as set forth in the Hub Services Agreement. If Shipper

fails to return Gas advanced by Freebird to Shipper on or before the agreed

date and time, the terms of Section 8.0 below shall apply.


 

2.2 To the extent Freebird advances Gas to an Interruptible Shipper which is

needed by Freebird in order to satisfy Freebird’s obligations to Firm service

Shippers or the Gas is otherwise necessary to meet System needs, Freebird may

with reasonable and nondiscriminatory discretion and upon giving notice to

Shipper, interrupt the continuation of any or all services hereunder and

require Shipper to replace or replenish all, or any portion, of the Loan

Balance borrowed by Shipper. Freebird will notify the Shipper of the need to

replace or replenish Gas and the quantity to be replaced or replenished and

shall specify the time period in which the Shipper must comply with the

notice. Freebird’s notice to Shipper may be given orally, but shall be

confirmed in writing via U.S. mail, electronic-mail, facsimile, instant

messaging or other method to Shipper. Unless Freebird otherwise agrees,

Shipper shall be required to make injections ratably over the specified time

period. If Shipper fails to replace or replenish borrowed Gas to Freebird as

directed within the period specified by Freebird, Freebird will have the

right to treat the loaned quantities that have not been returned as a sale of

such loaned quantities to Shipper, at a price per Dth equal to the Current

Market Price (as defined in Section 8 below), plus Freebird’s costs related

to Shipper’s failure to timely