(2) The purchase does not cause either Shipper to exceed its Maximum Storage

Quantity or Maximum Park Quantity, as applicable, and as specified in

Shipper's Service Agreement or Shipper's Hub Services Agreement, as

applicable, or cause either Shipper's balance to go below zero.


 

(b) Freebird will recognize the transfer for purposes of computing available

Storage Inventory or Park Balance, as applicable, on a prospective basis

within twenty-four (24) hours after receiving the notification. In the event

the required written verification is not received, the transfer will no longer

be recognized and the Storage Inventory for each Shipper will be restated to

reflect the reversal of the transfer.


 

(c) For each title transfer of Gas in storage performed by Shipper under

this Section, the transferring Shipper shall pay the fee, if any, for

title transfer agreed to by Freebird and the Shipper. This section does

not prohibit or limit the number of title transfer services provided by

third party providers.


 

19. PENALTIES

19.1 A Shipper shall be liable for and shall be required to reimburse Freebird

for all penalties, charges and fees which Freebird is required to pay to

Transporter as a consequence of Shipper's actions. The recovery of such

penalty amounts shall be on an as-billed basis.


 

19.2 In addition to the payment of the penalties set forth in Section 19.1

herein, the responsible Shipper shall also be liable, and shall reimburse

Freebird, for all costs incurred by Freebird as a consequence of such

Shipper's actions.


 

20. TRANSMISSION PROVIDER STANDARDS OF CONDUCT

20.1 Freebird does not meet FERC's definition of a Transmission Provider

because it is a storage company authorized to charge market-based rates, in

not interconnected with the facilities of any affiliated interstate natural

gas pipeline, has no exclusive franchise area, has no captive customers and

has no market power. Therefore, Freebird is not required to comply with the

FERC's Transmission Provider Standards of Conduct, as promulgated in Order

Nos. 2004, et al., and codified at 18 C.F.R. Part 358, as if it were a

Transmission Provider, but nevertheless will undertake to ensure transparency

and confidence to Freebird's customers in its provision of services on a

non-discriminatory basis.


 

20.2 All terms and conditions set forth in this FERC Gas Tariff shall be

applied in a non-discriminatory manner without preference to Freebird's

marketing affiliates.


 

20.3 Freebird shall provide service under Rate Schedules FSS, ISS, IPS, ILS,

and IBS on a basis that is equal (except as otherwise set forth in this FERC

Gas Tariff) in quality for all gas supplies stored, parked, loaned and/or

balanced by Freebird under such Rate Schedules.