ILS RATE SCHEDULE
              INTERRUPTIBLE LOAN SERVICE
   
1.     AVAILABILITY
This ILS Rate Schedule is available to any Customer for the purchase of
interruptible natural gas loan service from Caledonia, provided
that:
   
                (a)     Caledonia has determined that it has sufficient
operationally available storage, injection and withdrawal capacity to perform
service requested by Customer;
   
(b)     Caledonia has determined that service requested by Customer will not
interfere with efficient operation of its system or with service to firm
storage customers;
   
(c)     Customer and Caledonia have executed an Interruptible Loan Service
Agreement under this ILS Rate Schedule (ILS Service 
Agreement);
   
(d)     Customer accepts responsibility for arranging any transportation
service required for utilization of the storage service provided under this
ILS Rate Schedule;
   
(e)     Customer satisfies the creditworthiness criteria in accordance with
Sections 3 and 24 of the General Terms and Conditions; and
   
(f)     Service under this ILS Rate Schedule may not be available to the
extent that Caledonia would be required to construct, modify, expand or
acquire any facilities to enable Caledonia to perform the requested
services.
   
2.     APPLICABILITY AND CHARACTER OF SERVICE
(a)     Service provided under this ILS Rate Schedule, including all
injections into and withdrawals from storage shall have the priority specified
in Sections 4.1 through 4.4 of the General Terms and Conditions or otherwise
to the extent provided in this ILS Rate Schedule.