16.  DEFAULT, SUSPENSION AND TERMINATION
(a)  Termination for Default.  If (i) either Party shall fail in any material
respect to comply with, observe, perform or shall default in any material
respect upon any obligation under the Agreement, except due to causes excused
by Force Majeure or attributable to the other s wrongful act or failure to act
(Event of Default), and (ii) after written notice thereof from the Party
claiming a right to terminate the Agreement, such failure shall continue for a
period of thirty (30) Days, then the Party claiming the right to terminate may,
by notice in writing, terminate the Agreement as of the date of the notice of
termination; provided, however, that if such failure cannot be reasonably cured
within such thirty (30) Days, the party claimed to be in default shall be
entitled to such further time as shall reasonably be required to effect such
cure, provided that such Party commences within such thirty (30) Days
substantial efforts to effect such cure and at all times thereafter proceeds
diligently to complete such cure, but in no event, shall the cure period exceed
sixty (60) Days. If such cure is satisfactorily completed within such cure
period, the non-defaulting party will not have the right to terminate the
Agreement nor will the non-defaulting party have available to it the remedy set
forth in Section 16(b).
(b)  Suspension for Default.  Upon occurrence of an Event of Default, the
non-defaulting Party shall have the right to suspend performance until such
default has been remedied; provided, however, that an Event of Default does not
include nonpayment of amounts owed that are disputed in good faith. A Customer
shall not be obligated to pay any reservation or demand charges for suspended
service attributable to the period when that service is suspended.
   
(c)  Rights Following Termination.  In the event the Service Agreement(s) is
(are) terminated, such termination shall be without prejudice, subject to such
rights of offset as may exist, to any rights or obligations of the Parties
accruing prior to such termination, including, but not limited to, (i)
Customer s right to receive Gas that it has stored but has not received prior
to the time of termination (unless Customer fails to remove such Gas from the
Facility in the manner prescribed under the Service Agreement), (ii) Customer s
right to refunds, if any, plus interest, of portions of the rate paid prior to
such termination or release, or (iii) Caledonia s right to collect any amounts
then due it for service provided to Customer prior to the time of such
termination.  Upon termination, Customer shall cause all Gas in its Gas Storage
Balance Account to be removed from the Facility in the manner specified in the
Rate Schedule.
(d)  Other Rights Preserved.  The availability or exercise of the right to
terminate a Service Agreement pursuant to this section shall not serve to
diminish or effect the right of the Parties to seek damages or specific
performance, for breach of the Service Agreement, as provided in such
agreement.
(e)  Waiver of Default.  No waiver by either Party of any one or more defaults
by the other in the performance of any provisions of the Service Agreement
shall operate or be construed as a waiver of any future default or defaults,
whether of a like or different character.