discount factor, based on the rate bid (reservation or demand component),
the applicable quantity(ies) and term or period bid upon.  In default of
Releasing Customer specifying a method to break ties priority will be given
on a pro rata basis tied to MSC bid.
9.8  Qualification of Prospective Replacement Customer.  A prospective
Replacement Customer must be on Caledonia s approved bidders list before bids
may be posted, must satisfy all requirements of the applicable rate schedule
and the General Terms and Conditions of this FERC Gas Tariff and must have
executed a Capacity Release Umbrella Agreement.  To be on the approved bidders
list, the prospective Replacement Customer must satisfy Caledonia s credit
requirements as outlined in Section 3 and Section 24 of the General Terms and
Conditions, and provide the information required by Section 3 and Section 24 of
the General Terms and Conditions.  Such credit appraisal shall be reevaluated
and updated every three (3) months.  The prospective Replacement Customer shall
remain on the approved bidders list until such prospective Replacement Customer
(i) notifies Caledonia to the contrary, (ii) no longer meets the credit
qualifications established in Section 3 and Section 24 of the General Terms and
Conditions, or (iii) is suspended from the approved bidders list in the event,
and for such time as, such Replacement or Prearranged Customer fails to pay
part or all of the amount of any bill for service in accordance with Section 8
of the General Terms and Conditions.  Caledonia will apply its creditworthiness
criteria to assess the submission.  Caledonia will waive the creditworthiness
requirement on an non-discriminatory basis for Replacement Customers and permit
them to submit bids, if the Releasing Customer provides Caledonia with a
guarantee or other form of credit assurance in form and substance satisfactory
to Caledonia of all financial obligations prior to the commencement of service
to the Replacement Customer.
9.9  Nominations.  Following its selection, and prior to the flow of Gas, the
Replacement Customer shall be permitted to submit nominations pursuant to the
terms and conditions of the applicable rate schedule and the General Terms and
Conditions of this FERC Gas Tariff.
9.10     Billing.  The Replacement Customer shall be billed and make payments to
Caledonia in accordance with the applicable rate schedule, other provisions of
this FERC Gas Tariff and of its Storage Service Agreement incorporating its bid
terms.  In accordance with the terms of the release, the Replacement Customer
shall pay or be liable for the usage charges (plus all applicable surcharges,
Fuel Reimbursement, taxes, penalties, etc.) applicable under the relevant rate
schedule attributable to its usage of the released capacity.  Caledonia shall
continue to bill the Releasing Customer all applicable charges under its
existing Storage Service Agreement, excluding usage charges (plus all
applicable surcharges, Fuel Reimbursement, taxes, penalties, etc.) billed to
the Replacement Customer and attributable to its usage of the released
capacity.  Invoices sent to the Releasing Customer shall reflect a credit equal
to any reservation charges (plus all surcharges applicable thereto) being
billed to the Replacement Customer for the released capacity rights, or as
otherwise agreed.  If the Replacement Customer fails to pay when due all or
part of the amounts credited to the Releasing Customer, Caledonia shall pursue
payment from the Replacement Customer by notifying such customer by registered
letter, return receipt requested, that it has five Days from receipt of such
letter to pay the amount due including any applicable interest.  If the
Replacement Customer fails to pay such amount by the