any loss of storage Gas that results from a Force Majeure event or that is not
the result of Caledonia s negligence or failure to exercise due
diligence.
   
5.     MONTHLY BILL
     The monthly bill for Interruptible Loan Service shall reflect the
applicable charges set forth under Section 4 of this ILS Rate Schedule at
rates set forth in Customer s ILS Service Agreement.
   
6.     TERM
     The term for service under this ILS Rate Schedule shall be as set forth
in the executed ILS Service Agreement.  Notwithstanding anything to the
contrary in this Tariff, Caledonia may agree with any Customer, on a not
unduly discriminatory basis, to an extension of the term of a Service
Agreement for an additional term to be negotiated on a case-by-case
basis.
   
7.     NOTICES
     (a)     In the event that Caledonia determines, in its reasonable
judgment, that some or all Interruptible Loan Service(s) must be interrupted
in order to satisfy Caledonia s obligations to FSS Service Customers, or that
such interruption is otherwise necessary or is otherwise appropriate to avoid
adverse impact on the operation of Caledonia s system, Caledonia will notify
any affected Customer receiving Interruptible Loan Service that they are
required to reduce their negative Interruptible Loan Balance(s) over the
period specified in the notice.  Such notice shall be issued to Customers, via
facsimile or email, on a price basis, where lower price services will be
noticed before higher price services.  At a maximum, Customers will have one
(1) Day in which to comply with the notice.
   
     (b)     If Customer fails to comply with the notice given in accordance
with Section 7(a) of this ILS Rate Schedule, Caledonia may cash out the
negative Interruptible Loan Balance quantity that Customer was advised, but
failed to reduce or eliminate at replacement cost of the Gas plus ten percent
(10%) for any negative Interruptible Loan Balances not
eliminated.
   
8.     AUTHORIZATION, RATES, TERMS AND CHANGES
     (a)     Customer s ILS 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 loan service contemplated herein and to construct and operate the
gas storage facilities necessary to provide such loan service and for any
connected pipeline to transport natural gas to/from the Point(s) of
Receipt/Delivery necessary to effect the loan 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 ILS 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