11.     FUEL REIMBURSEMENT
11.1     Categories of Fuel Usage.  Fuel usage is comprised of fuel utilized
and lost and unaccounted for volumes to the extent required for the operation
and maintenance of Caledonia s Facility.
   
11.2     Fuel Reimbursement.  Fuel Reimbursement shall be calculated
separately for services under FSS, ISS and ILS Rate Schedules.  Each Fuel
Reimbursement charge shall be negotiated by Caledonia and Customer.
Reimbursement of fuel must be made in kind (as a percentage of injection in
Dth), as set forth in Customer s Service Agreement(s).
   
12.     TITLE AND RISK OF LOSS
(a)     Title.  Customer warrants that it will have good title to all natural
gas delivered to Caledonia for storage, and that such Gas will be free and
clear of all liens, encumbrances and claims whatsoever, and that it will
indemnify Caledonia and save it harmless from all suits, actions, debts,
amounts, damages, costs, losses and expenses arising from or out of adverse
claims of any and all persons to said Gas.
   
(b)     Risk of Loss.  As between Customer and Caledonia, Customer shall be in
control and possession of the Gas prior to Delivery to Caledonia for injection
at the Point(s) of Receipt and after at the Point(s) of Delivery, and shall
indemnify and hold Caledonia harmless from any damage or injury caused
thereby.  Caledonia shall be in control and possession of the Gas after the
Delivery of the same for injection at the Point(s) of Receipt and until
Delivery by Caledonia to Customer at the Point(s) of Delivery, and shall
indemnify and hold Customer harmless from any damage or injury caused thereby,
except for damages and injuries caused by the sole negligence of Customer.
The risk of loss for all Gas injected into, stored in and withdrawn from
storage shall remain with Customer, and Caledonia shall not be liable to
Customer for any loss of Gas, except as may be occasioned due to the
intentional or grossly negligent acts or omissions of Caledonia.  Any losses
of Gas, unless due to the intentional or grossly negligent acts or omissions
of Caledonia, shall be shared proportionately by all Customers.  Customer
retains title to Gas at all times.
   
13.     GAS TITLE TRANSFERS
13.1     Title Transfers of Gas in Storage.
(a)     A Customer that has executed a Service Agreement under FSS and ISS
Rate Schedules may sell Storage Inventory to any other Customer that has
executed a Service Agreement under FSS, AISS and ISS Rate Schedules or AILS
and ILS Rate Schedules if related to a return of a prior loan of Gas
if:
   
(i)     Customer selling Storage Inventory provides notification to
Caledonia s dispatcher prior to the nomination deadline and provides Caledonia
with written verification of the transfer within three business Days;
and