9. CAPACITY RELEASE

Any Customer under Rate Schedule FSS may seek to release for assignment to

others any or all of its firm service entitlements on a full Day or an intraday

basis, on a permanent or a temporary basis, and on a firm or recallable basis,

subject to the following terms and conditions:

9.1 Notice of Offer. A Customer offering to release firm service

entitlements shall notify Caledonia via the Internet Web site of the terms of its

offer by the posting deadline as determined pursuant to Section 9.3 herein.

Caledonia will post this information on the Internet Web Site. The Customer may

propose a pre-arranged designated Replacement Customer to which the capacity would

be released. Offers shall be binding unless written or electronic notice of

withdrawal is received by Caledonia prior to the close of the applicable bid

period; provided, however, such withdrawal shall only be valid if such Customer has

an unanticipated requirement for such capacity and no minimum bid has been made.

The notice must contain the reason for withdrawal which Caledonia shall post on the

Internet Web Site. The offer shall contain the following minimum information:

(a) Customer’s legal name and the name/title of individual who

has authorized the offer to release;

(b) Caledonia’s Storage Service Agreement number;

(c) A description of the capacity to be released, including the

Maximum Storage Capacity, the Maximum Daily Injection Quantity, the Maximum Daily

Withdrawal Quantity, the Available Daily Injection Quantity, the Available Daily

Withdrawal Quantity and the associated Point(s) of Receipt and Point(s) of

Delivery, subject to the proposed release and subject to the daily quantity

limitations described in Section 9.2 below;

(d) The proposed effective date and term of the release;

(e) The identity of any pre-arranged designated Replacement

Customer, a statement as to whether the Prearranged Customer is an asset manager

(as defined by FERC regulations at 18 C.F.R. § 284.8(h)(3)) or marketer

participating in a state-regulated retail access program (as defined by FERC

regulations at 18 C.F.R. § 284.8(h)(4)), and the full terms of such pre-arranged

release;

(f) The method to be applied in evaluating bids, allocating

capacity and breaking ties, as described below;

(g) Whether, to what extent, and the conditions pursuant to

which capacity will be subject to recall for a full Day or on an intraday basis,

and if recallable, any reput methods and rights associated with returning the

previously released capacity to the Replacement Customer;

(h) Whether bids on a volumetric rate basis may be submitted,

and, if so, the method for evaluating any such bids, including how to rank bids if

bids are also to be accepted on a demand charge basis, and any other special conditions;

(i) Any extensions of the minimum posting/bid periods;