7.     AUTHORIZATION, RATES, TERMS AND CHANGES
     (a)     Customer s FSS 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 storage service contemplated herein and to construct and operate
the gas storage facilities necessary to provide such storage service and for
any connected pipeline to transport natural gas to/from the Point(s) of
Receipt/Delivery necessary to effect the storage 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 FSS 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 FSS Service
Agreement(s).
   
8.     RIGHT OF FIRST REFUSAL
(a)     Right of First Refusal at End of Contract Term - on or after December
5, 2007.  Caledonia may discontinue service to Customer at the end of a
primary term of an FSS Agreement with a primary term beginning date on or
after November 19, 2007, unless (i) Caledonia and Customer mutually agree to a
right of first refusal, which shall be negotiated on a not unduly
discriminatory basis, and (ii) Customer exercises its right of first refusal
for the capacity covered by the FSS Service Agreement by matching the
acceptable terms offered to Caledonia during an open season, conducted
pursuant to Section 3.1 of the General Terms and Conditions, for such capacity
by any qualified prospective successor Customer.
   
(b)     Right of First Refusal at End of Contract Term - Prior to December 5,
2007.  A right of first refusal shall be available on a one-time basis to
Customers holding a Long-term FSS Service Agreement with a primary term
beginning date prior to December 5, 2007.  Caledonia may discontinue service
to Customer at the end of the primary term of Customer s Long-term FSS Service
Agreement unless Customer exercises its right of first refusal for the
capacity covered by the Long-term FSS Agreement by matching the acceptable
terms offered to Caledonia during an open season, conducted pursuant to
Section 3.2 of the General Terms and Conditions, for such capacity by any
qualified prospective successor Customer.  A "Long-term FSS Agreement," as
that term is used in this Section, is a FSS Service Agreement having a primary
term of three (3) years or more.  A prospective successor Customer is
"qualified," within the meaning of this Section, if such prospective successor
Customer meets the creditworthiness criteria set forth in Sections 3 and 24 of
the General Terms and Conditions.