GENERAL TERMS AND CONDITIONS
                                      TABLE OF CONTENTS
1.     Definitions
2.     Electronic Bulletin Board
3.     Request for Natural Gas Service
4.     Priority, Interruption of Service and Operational Flow Orders
5.     Nominations and Scheduling
6.     Imbalances
7.     Gas Pressure, Quality and Measurement
8.     Billing and Payment
9.     Capacity Release
10.     Force Majeure
11.     Fuel Reimbursement
12.     Title and Risk of Loss
13.     Gas Title Transfers
14.     Penalties
15.     North American Energy Standards Board (NAESB) Standards
16.     Default, Suspension and Termination
17.     Assignment
18.     Notices
19.     Regulation
20.     Policy with Respect to Fees and Construction of New Facilities
21.     Off-System Capacity
22.     Form of Service Request
23.     Choice of Law
24.     Creditworthiness and Financial Assurances
25.     Non-Waiver of Future Default
26.     Dispute Resolution Procedures
27.     Limitation of Liability
   
1.     DEFINITIONS
1.1     "Advanced Interruptible Loan Balance" means the quantity of Gas in
Customer s account under the AILS Rate Schedule.
   
1.2     "Advanced Interruptible Storage Balance" means the quantity of Gas in
Customer s account under the AISS Rate Schedule.
   
1.3     "Authorized Overrun Quantities" means quantities of Gas which
Caledonia agrees, in its reasonable judgment, to inject or withdraw for
Customer, in excess of Customer s Available  Daily Injection
Quantity/Available Daily Withdrawal Quantity, as established in Appendix A of
Customer s Service Agreement.
   
1.4     "Available Daily Injection Quantity" shall mean the percentage of MDIQ
available for injection by Customer on any Day and that Caledonia may be
required to inject into storage, as specified in Exhibit A of Customer s
Service Agreement.