terms and conditions set forth in Section 3.2 of the General Terms and
Conditions.
   
(3) Bids from qualified successor Customers who desire, in whole or in part,
the capacity to be made available upon the expiration or termination of the
FSS Agreement must be received by Caledonia within the timeframe set forth in
the Open Season.  Upon expiration of the open season, Caledonia will select
the highest bid received from a qualified successor Customer and communicate
the terms of the highest bid to Customer, who may elect, within fifteen (15)
Days or such greater time as Caledonia may specify, to execute a renewal FSS
Service Agreement upon the same terms.  In determining which bid for the
capacity is the highest, Caledonia will use the present value formula set
forth in Section 3.2 of the General Terms and Conditions.
   
(4) If Customer does not elect to match the terms of such highest bid, its FSS
Service Agreement will expire at the conclusion of its term and will be deemed
to have all necessary abandonment authorization under the Natural Gas Act with
respect to such service.  Caledonia may enter into a new FSS Service Agreement
with the qualified successor Customer who submitted the highest
bid.
   
(5) Caledonia shall retain the right to require a minimum rate or term of
service, which shall be market-based, for bids during any such open
season.
   
(d)     Continuation of Service.  If during the open season, Caledonia
receives no bids or rejects all bids, Caledonia and Customer may negotiate for
continuation of service under mutually satisfactory rates, terms, and
conditions.  In no event, however, will such continued service be provided at
a rate lower than the highest rate bid by a qualified prospective successor
Customer during the open season.
   
9.     EXPIRATION OF TERM
Prior to the expiration of the primary term or any renewed term of the
Customer s FSS Service Agreement, Caledonia shall notify Customer to withdraw
all Working Gas quantities held by Caledonia for Customer s account.  If
Customer fails to withdraw all of the Working Gas by the end of the term or
within fifteen (15)  Days of termination, then Caledonia may take, free and
clear of any adverse claims or obligations to Customer, title to such Working
Gas quantities as Customer was required to withdraw.  Caledonia s notice may
be given verbally, but shall be confirmed in writing either by facsimile,
email, or via Caledonia s Internet website.