Terms & Conditions of Service

TERMS & CONDITIONS OF SERVICE SCHEDULE

Contents Introduction General .................................................................................................................................... 1 Application .................................................................................................................................................... 1 Interpretation ............................................................................................................................................... 1 In Force ......................................................................................................................................................... 1 Consideration................................................................................................................................................ 1 1. APPLICATION FOR SERVICE ............................................................................................................... 1 1.1 General...................................................................................................................................... 1 1.2 Service Applications – General Requirements .......................................................................... 2 1.3 Service Applications – No Existing Facilities.............................................................................. 4 1.4 Load Changes ............................................................................................................................ 4 2. RATE CLASSIFICATIONS ..................................................................................................................... 5 2.1 Rate Structure ........................................................................................................................... 5 2.2 Applicability............................................................................................................................... 6 3. BILLING AND PAYMENTS................................................................................................................... 6 3.1 General...................................................................................................................................... 6 3.2 Rendering Bills........................................................................................................................... 7 3.3 Equalized Payment Plan............................................................................................................ 8 3.4 Pre-Authorized Payment Plan................................................................................................... 9 3.5 Consolidated Billing................................................................................................................. 10 3.6 Returned and Late Payments.................................................................................................. 10 3.7 Deposits and Security.............................................................................................................. 10 3.8 Service Fees and Costs ............................................................................................................ 11 4. MEASUREMENT, CORRECTIONS, AND DISPUTES............................................................................ 12 4.1 General.................................................................................................................................... 12 4.2 Billing Corrections ................................................................................................................... 12 4.3 Disputes .................................................................................................................................. 13 5. DISCONTINUATION OF SERVICE...................................................................................................... 13 5.1 General.................................................................................................................................... 13 5.2 Discontinuation Initiated by SaskEnergy................................................................................. 14 5.3 Customer Requested Discontinuation .................................................................................... 14 6. RECONNECTION OF SERVICE........................................................................................................... 15 7. RENTAL PROPERTY PROCESS........................................................................................................... 15

Terms and Conditions of Service Schedule January 6, 2021 (LL10846)

8. SASKENERGY FACILITIES.................................................................................................................. 16 8.1 Installation of Facilities ........................................................................................................... 16 8.2 Right of Access to Facilities ..................................................................................................... 18 8.3 Ownership of Facilities............................................................................................................ 18 8.4 Damage to Facilities ................................................................................................................ 19 8.5 Encroachments on Facilities or Right-of-Way......................................................................... 19 8.6 Alterations to Facilities ........................................................................................................... 20 9. LIABILITY AND INDEMNITY.............................................................................................................. 20 10. LOCATING OF BURIED PIPELINES ................................................................................................ 21 11. OFFENCES AND PENALTIES ......................................................................................................... 22 12. FORCE MAJEURE ......................................................................................................................... 23 13. CONFIDENTIALITY AND RELEASE OF INFORMATION .................................................................. 24 14. ENVIRONMENT ........................................................................................................................... 24 15. USE OF SERVICES......................................................................................................................... 25 16. GAS SUPPLY................................................................................................................................. 25 17. JOINT AND SEVERAL LIABILITY .................................................................................................... 25 18. ADDITIONAL IMPORTANT TERMS ............................................................................................... 25 APPENDIX A – DEFINITIONS ........................................................................................................................ 28 APPENDIX B – RATE TARIFF......................................................................................................................... 37 APPENDIX C – TARIFF OF FEES .................................................................................................................... 39 APPENDIX D – DEPOSIT GUIDELINES........................................................................................................... 41 APPENDIX E – THIRD PARTY GAS SUPPLY ................................................................................................... 43 APPENDIX F – SAFE WORK PLANNING AND FACILITY CROSSING ............................................................... 47

Terms and Conditions of Service Schedule January 6, 2021 (LL10846)

Terms and Conditions of Service Schedule Introduction General SaskEnergy Incorporated is a Crown Corporation wholly owned by the Province of Saskatchewan and governed by The SaskEnergy Act S.S. 1992, c. S-35.1, as amended from time to time. Pursuant to Section 16 of the Act, SaskEnergy may establish rates and charges that Persons who accept, use or receive Services from SaskEnergy are required to pay, and may establish terms and conditions that Persons who accept, use or receive Services from SaskEnergy are required to comply with. Application This Schedule sets out the rates and charges and the terms and conditions of Service that apply to all of SaskEnergy’s Customers, including existing Customers. Except as otherwise provided for herein, this Schedule supersedes and replaces all previous rates, charges, terms and conditions of Service. In the event of conflict between a provision expressly set out in a Written Service Agreement and this Schedule, the Written Service Agreement shall govern. Amended – August 6, 2013 Interpretation Capitalized terms shall have the meaning set out in Appendix A. In Force This Schedule comes into effect on September 30, 2005. Consideration In consideration of the provision of Services to the Customer and the mutual covenants and agreements herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereby covenant and agree as follows.

1.

APPLICATION FOR SERVICE

1.1

General 1.1.1 Unless otherwise provided for herein, SaskEnergy may, in its sole discretion, accept verbal applications for Services, verbal applications for Services over the telephone, and on-line applications for Services through ExpressAddress™ at www.saskenergy.com. A verbal or on-line application accepted by SaskEnergy shall constitute a Contract. 1.1.2 SaskEnergy shall not be deemed to have accepted a verbal or internet application for Service until the Service is provided, or communication of said acceptance is made by SaskEnergy in writing. 1.1.3 Notwithstanding anything in this Schedule, SaskEnergy may, in its sole discretion, require a Written Service Agreement before providing a Service. Amended – August 6, 2013

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1.2

Service Applications – General Requirements 1.2.1 SaskEnergy may request from the Applicant, and the Applicant shall provide, such information as SaskEnergy may reasonably require to provide a Service, to collect on its accounts and to otherwise ensure the proper functioning of its business. This information may include but shall not be limited to:

(a)

The names of all Persons occupying or residing at a Premises or that will otherwise accept, use or receive the Service (hereinafter referred to as ‘the Customer’ or ‘the Customers’). Where the Applicant or any Customer is an individual, such Personal Information with regards to the Applicant and each Customer as SaskEnergy may reasonably require to provide a Service, to collect on its accounts or to otherwise ensure the proper functioning of its business. This information may include the information required in [1.2.1(f)] and will generally include, but shall not be limited to: name, address, telephone number, driver’s license number, and date of birth. The name, address and telephone number of the Owner or Owners of the Premises. Where the Applicant or a Customer is a corporation, the name, address and telephone number of the company, the officers of the company and their contact information, proof of incorporation satisfactory to SaskEnergy, and any additional information or supporting documents required by SaskEnergy, in its sole discretion. Where the Applicant or a Customer is a partnership, joint venture, sole proprietorship or other non-incorporated body, the partners, participants, or proprietor of such Person shall provide such information as SaskEnergy may require, to the same extent as if that individual or corporation was applying for or receiving the Service directly. At SaskEnergy’s sole discretion, a credit report from a credit reporting agency, financial information, credit history, transaction history with SaskEnergy or its Subsidiaries, credit references, business or trade names, bank account information, e-mail address, demographic information, additional verification of identity or such other information as SaskEnergy may reasonably require to provide a Service, to collect on its accounts or to otherwise ensure the proper functioning of its business.

(b)

(c)

(d)

(e)

(f)

A Customer is required to contact SaskEnergy to make changes to the information provided pursuant to this Paragraph [1.2.1], as and when it changes. In obtaining and using Personal Information pursuant to this Paragraph [1.2.1], SaskEnergy shall endeavour to be governed by its Privacy Policy dated August 30, 2004, as amended, supplemented or replaced from time to time. 1.2.2 In addition to the information required by [1.2.1], SaskEnergy may demand and obtain from an Applicant all or any of the following before SaskEnergy provides a Service:

(a)

A Deposit or Security in an amount and in a form which is acceptable to SaskEnergy;

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(b)

A contribution, in an amount and paid in a manner that is directed by SaskEnergy or its Subsidiary, towards the construction costs of any Facility and the costs of acquiring any equipment required to provide the Service; and A Queue Deposit, in an amount and in a form which is acceptable to SaskEnergy, to maintain the Applicant’s priority position for Service in the queue.

(c)

1.2.3 In addition to any other right or remedy herein specifically granted or existing in equity, at law, by virtue of statute or otherwise, SaskEnergy has the right to deny Service to any Person or group of Persons with outstanding debts, a history of late payments, or a past failure to meet obligations to SaskEnergy under an agreement with SaskEnergy, this Schedule or otherwise imposed by law. Amended – September 7, 2016 1.2.4 Where an Applicant has outstanding debts owing, a history of late payments, or a past failure to meet obligations to SaskEnergy under an agreement with SaskEnergy, this Schedule or otherwise imposed by law, an Applicant may be required to provide one or more of the following before Service will be provided:

(a) (b)

Payment in full of sums owing to SaskEnergy or its Subsidiaries; or Payment arrangements acceptable to SaskEnergy, in its sole discretion, for outstanding debts owing; and A Deposit or Security in an amount and in a form which is acceptable to SaskEnergy. Amended – September 7, 2016

(c)

1.2.5 Where a Person, other than the Applicant, will occupy a Premise, will reside at a Premise with the Applicant, or will otherwise accept, use or receive the benefit of a Service, an Application for Service may be denied unless:

(a)

Payment in full of sums owing by that Person to SaskEnergy or its Subsidiaries is provided; or Payment arrangements acceptable to SaskEnergy, in its sole discretion, are made; and A Deposit or Security is provided in an amount and in a form which is acceptable to SaskEnergy.

(b)

(c)

1.2.6 Customers who fail to maintain the terms of any payment arrangement may be subject to debt collection proceedings and Discontinuation or Disconnection of Service. 1.2.7 SaskEnergy may refuse to open an account or enter into a Contract with a party which is not a distinct legal entity with the capacity to contract in its own right. 1.2.8 As a condition of receiving Service, the Customer shall provide Gas equipment specifications, Loads, location plans, piping data, regulator information and other data, as required by SaskEnergy, in its sole discretion. 1.2.9 Notwithstanding anything in this Schedule, Customers shall be responsible for ensuring that their Gas installations conform to all relevant and applicable federal, provincial, municipal or band legislation or enactments. The Customer shall be responsible for all necessary licenses and authorizations, and shall comply with the provisions of The Gas

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Inspection Act S.S. 1993, c.G-3.2, as amended or replaced from time to time, and obtain all necessary permits or licenses as a condition of obtaining Service. 1.2.10 Where band council approvals or consents are required prior to receiving Natural Gas Service or other Service, the Customer shall consult with and obtain approval and consent from the applicable band council. If any required band council approvals or consents are not granted to the Customer, SaskEnergy may refuse Natural Gas Service or any other Service to the Customer. 1.2.11 Subject to staff availability, and unless otherwise provided for herein, SaskEnergy will schedule a Service Activation for the Business Day next following the date of the Applicant or Customer request. Provided that:

(a)

SaskEnergy shall not be obligated to provide Service Activations after Business Hours, and no Service Activation shall be scheduled for or occur outside of Business Hours, except at SaskEnergy’s sole discretion. All requests for Service Activations will be subject to an increased after hours Service Activation Fee, if the Customer requests the Service Activation to occur after Business Hours and SaskEnergy establishes or re-establishes service outside of Business Hours. See Appendix C – Tariff of Fees. If Natural Gas Service to a particular Customer is Disconnected for any reason described in Paragraph [5.2.1 (c), (d), or (e)], Service shall generally be restored as soon as practicable and this Paragraph [1.2.11] will not apply. New Provision – February 8, 2008

(b)

1.3

Service Applications – No Existing Facilities 1.3.1 Unless otherwise agreed to by SaskEnergy in a Written Service Agreement, an Applicant or Customer who authorizes construction for a new Service installation will be responsible for all SaskEnergy construction costs and Service Fees associated with that new Service. Amended – August 6, 2013 1.3.2 A Person requesting the installation of new Facilities shall complete an application for Service on a form provided by SaskEnergy. Subject to Paragraph [8.1], the application, when signed by the Person and accepted by SaskEnergy, shall constitute a Contract for Service. 1.3.3 Temporary Services are installed at full cost to the Customer and must be prepaid prior to installation. Customers requesting Temporary Service will be charged the Service Fee for installation and removal of Facilities, including the costs of unsalvageable material. If the Temporary Service is ultimately required for a period longer than twelve (12) months, the Service will be considered a permanent Service and Customer will be credited or refunded the cost savings, if any, on request. Load Changes 1.4.1 A Customer shall give to SaskEnergy reasonable written notice of any material increase in the Customer’s Gas Load requirements in order to permit SaskEnergy to determine whether or not it can supply such Load without changes to its equipment or system. A

1.4

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material increase in a Customer’s Load shall be an increase or projected increase of 2,500 Cubic Metres per annum or greater. Notwithstanding this or any other provision of this Schedule, SaskEnergy shall not be obligated to supply to any Customer any Load in excess of that agreed to by SaskEnergy. Amended – October 16, 2014 1.4.2 A Customer shall be responsible for and pay for all damages caused to SaskEnergy Facilities as a result of that Customer increasing its Load without the permission of SaskEnergy. Amended – October 16, 2014 1.4.3 If an increase in a Customer’s Load would require changes to SaskEnergy’s Facilities, that Customer shall be required to pay SaskEnergy’s Service Fees for such changes. Amended – October 16, 2014 1.4.4 SaskEnergy reserves the right to install additional Regulating Equipment or other Facilities at the Customer’s cost where a reduction in consumption threatens equipment functionality, in SaskEnergy’s sole discretion. Alternatively, SaskEnergy will replace equipment with Regulating Equipment or other Facilities of reduced capacity, without compensation to the Customer, at SaskEnergy’s cost. New Provision – October 16, 2014 1.4.5 Where equipment functionality is not affected by a reduction in Customer Load, but allocated distribution system capacity has not been utilized by the Customer over a period of five years, SaskEnergy may fully repurpose Facilities, or remove or replace Regulating Equipment or other Facilities with equipment of reduced capacity, without compensation to the Customer, at SaskEnergy’s sole discretion and cost. New Provision – October 16, 2014

2.

RATE CLASSIFICATIONS

2.1

Rate Structure 2.1.1 The rates and charges payable by Customers for the Supply and Delivery of Gas vary depending on the use of the Gas and the annual volume of Gas consumed. 2.1.2 The four basic Rate Classifications for Full Service Customers purchasing Supply and Delivery of Gas are as follows: □ Residential; □ Commercial Small - maximum annual Load of 100,000 3 ; □ Commercial Large - annual Load between 100,000 3 and 660,000 3 ; and □ Small Industrial - annual Load between 660,000 3 and 1,320,000 3 . Amended – August 6, 2013 2.1.3 A qualifying Customer may choose to purchase Gas from a supplier other than SaskEnergy pursuant to Paragraph [16.2] (a ‘Gas Retailer’). The three basic Rate Classifications for Delivery Service Customers purchasing Delivery of Gas only from SaskEnergy are as follows: □ Residential; □ Commercial Small - maximum annual Load of 100,000 3 ; and □ Commercial Large - annual Load between 100,000 3 and 660,000 3 . Amended – August 6, 2013

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2.1.4 The remaining Rate Classification is Contract Industrial. Contract Industrial Customers are Full Service or Delivery Service Customers with an annual consumption in excess of 660,000 3 , or with a daily contracted consumption volume in excess of 10,000 3 . Contract Industrial rates, charges and terms and conditions are not published, and are as quoted and provided for in a Written Service Agreement. Amended – August 6, 2013 2.1.5 Rate administration shall be at the sole discretion of SaskEnergy. Customers who are initially placed within a Rate Classification may be changed to another Rate Classification, in the sole discretion of SaskEnergy, if their Customer usage type or annual volume of Gas consumed changes. 2.1.6 Subject to Paragraph [2.2], the rates charged for Delivery Service and Full Service Customers, as amended from time to time, are set out in the Rate Tariff appended to this Schedule as Appendix B, and forming part hereof. Rates for Supply and Delivery to Contract Industrial Customers are as quoted and provided for in a Written Service Agreement, and are provided on a Special Service basis only. Amended – October 16, 2014 2.1.7 Notwithstanding anything in this Schedule, unless otherwise provided for in a Written Service Agreement, the rate charged for fueling of natural gas powered vehicles shall be the rate indicated on the dispenser display at the fuelling station at the time of fuelling, and the rate displayed may be adjusted by SaskEnergy from time to time at its sole discretion. New Provision – October 16, 2014. 2.2 Applicability 2.2.1 Bills will be rendered in accordance with the Rate Tariff (Appendix B), Tariff of Fees (Appendix C) and this Schedule, unless otherwise agreed to in a Written Service Agreement. If the rates or charges are changed and the effective date of the change falls between the dates of two successive meter readings, SaskEnergy shall render a bill determined upon a pro rata basis. Amended – August 6, 2013 2.2.2 In the event of a change in the Rate Tariff or Tariff of Fees, Customers shall be responsible for the adjusted Rate from the effective date thereof, irrespective of whether actual notice of the change was given or received. 2.2.3 On an application for Service, SaskEnergy may, in its sole discretion, refuse to provide Service in accordance with the terms, conditions, charges or rates set out in the Rate Tariff, Tariff of Fees, or this Schedule, or at all. SaskEnergy may enter into a Written Service Agreement with a Person to provide a Special Service to that Person if, in the opinion of SaskEnergy, a charge, rate, term or condition described herein is not adequate to allow SaskEnergy to provide that Service to that Person. Amended – August 6, 2013

3.

BILLING AND PAYMENTS

3.1

General 3.1.1 A Customer’s Natural Gas Service invoice or bill is made up of three (3) main

components - the Basic Monthly Charge, the Delivery Charge, and the Gas Consumption Charge, as found in Appendix B. A Customer will also be charged for other Services used, accepted or received. The most common Service charges can be found in Appendix C.

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3.1.2 Delivery Service Customers purchasing their Gas Supply from a supplier other than SaskEnergy may continue to receive a bill from SaskEnergy for the Basic Monthly Charge, Delivery Charge, Gas Retailer's Gas Consumption Charge and other Services pursuant to an agreement with the Gas Retailer. In this event, the total billed is payable to SaskEnergy. Amended – November 1, 2009 3.1.3 Customers will be subject to any applicable Municipal Surcharge provided for in the Act or Regulations. All Services and Municipal Surcharges are subject to any applicable GST, taxes and/or other charges imposed by municipal, provincial or federal authorities. Amended – April 3, 2018 3.1.4 SaskEnergy has developed two billing options that Customers may choose to enrol in and utilize as a bill management tool. These plans are known as the Equalized Payment Plan (‘EPP’) and the Pre-Authorized Payment Plan (‘PPP’) and are discussed below. Amended – August 6, 2013 3.1.5 The federal Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s.186) requires all fuel deliveries to be subject to a fuel charge. Customers will be subject to the Federal Carbon Charge for all Natural Gas Service provided by SaskEnergy. The Federal Carbon Charge is subject to GST. New Provision – April 9, 2019 Rendering Bills 3.2.1 SaskEnergy will send a Customer an invoice or bill for Natural Gas Service at regular intervals. Charges for Services other than Natural Gas Service may be billed as they are provided or may be added as a component of the Customer’s regular bill for Natural Gas Service, at the sole discretion of SaskEnergy. Bills will be rendered monthly, or at such other interval as SaskEnergy may determine. Billing or account information is available on request. Amended – August 6, 2013 3.2.2 The Customer shall pay the full amount of any SaskEnergy bill issued to the Customer, including any disputed portion, without prejudice to the Customer’s right to subsequently contest any rate or fee charged. 3.2.3 Bills will be provided by ordinary mail, or, where requested by the Customer and agreed upon by SaskEnergy, by fax, e-mail or online. For bills provided by ordinary mail, bills shall be deemed received on the earlier of the date of actual receipt or three (3) Days after the date of mailing to the last known address, regardless of actual receipt. Bills that are issued via e-mail or fax shall be deemed to have been received by the Customer on sending, regardless of actual receipt. Online bills and e-mail notifications that are generated by SaskEnergy’s computer systems to advise customers when their bills are available for viewing shall also be deemed to have been received by the Customer on sending or posting, regardless of actual receipt. SaskEnergy’s records of the date of mailing, sending or posting of bills or bill notifications shall be conclusive evidence of the date of mailing, sending or posting. Amended – August 6, 2013 3.2.4 Notwithstanding anything in this Schedule, bills are due on rendering and not on receipt. Failure to receive a bill does not release a Customer from the obligation to pay.

3.2

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SaskEnergy’s records of the date of mailing, sending or posting of bills or a bill notification shall be conclusive evidence of the date of rendering.

3.2.5 A failure to pay any amount billed by SaskEnergy on the due date shall be a default of payment, which may result in the Discontinuation or Disconnection of Natural Gas Service or termination of any other SaskEnergy Service. 3.2.6 Unless otherwise expressly provided for herein, no interest will be payable by SaskEnergy on account credits. Overpayments will appear as a credit on the Customer’s account or shall be refunded in SaskEnergy’s sole discretion. 3.2.7 Where an account is in a Customer’s name, that Customer shall remain liable for future Services provided to that Premises notwithstanding that he or she has sold or vacated the Premises, unless SaskEnergy is notified of the change. Equalized Payment Plan 3.3.1 The Equalized Payment Plan (‘EPP’) spreads the estimated annual cost of Natural Gas Service over twelve (12) equal monthly payments (the ‘EPP Term’). The twelve (12) equal monthly payments will be billed each month. EPP is generally available to Residential Customers and to Commercial Small accounts, with a credit risk satisfactory to SaskEnergy. Amended – August 6, 2013 3.3.2 SaskEnergy requires that the current bill be paid in full as a condition of enrolment in EPP. The Customer will automatically remain under EPP from Year to Year until terminated. The Customer may terminate the EPP at any time by giving seven (7) Days’ notice of termination to SaskEnergy. SaskEnergy may terminate EPP at any time, without cause, on thirty (30) Days’ notice, or without notice in the event that the Customer: (i) ceases to be a Customer, (ii) fails to meet any obligations under this Schedule; (iii) becomes insolvent (however evidenced); (iv) commences, authorizes or acquiesces in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors or has such petition filed or proceeding commenced against it; (v) makes an assignment or any general arrangement for the benefit of its creditors; or (vi) fails to maintain payment of sums due to SaskEnergy’s satisfaction. 3.3.3 At least once per year, the EPP monthly payment amount will be reviewed by SaskEnergy and a new amount may be set for the next twelve (12) months, in SaskEnergy’s sole discretion. The difference between the EPP payments billed and actual consumption during the EPP Term will be considered by SaskEnergy in determining the monthly EPP amount for the next EPP Term, together with such other factors as SaskEnergy may deem relevant from time to time. Upon the expiration of the EPP Term or upon early termination as referred to above, the amount that would be payable to SaskEnergy by the Customer pursuant to this Schedule for Gas actually consumed from the beginning of each twelve (12) Month period to its end or earlier termination, shall be compared with the aggregate of the monthly installments actually paid by the Customer during such time. If the value of the Natural Gas Service provided exceeds the aggregate of the amounts actually paid, such excess shall be billed by

3.3

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SaskEnergy, and payable by the Customer to SaskEnergy, at such time and in such manner as SaskEnergy may determine, in its sole discretion; if the amount actually paid exceeds the value of the Natural Gas Service provided, such excess shall be paid or credited by SaskEnergy to the Customer, in such manner as SaskEnergy may determine, in SaskEnergy’s sole discretion. Amended – August 6, 2013 3.3.4 The Customer can generally be placed on EPP at any time of the Year, and, wherever possible, the EPP Term will commence the following bill cycle. SaskEnergy may, in its sole discretion, elect to spread the equalized payments over eleven (11) or thirteen (13) installments in the first Year, and to utilize an eleven (11) or thirteen (13) Month EPP Term, so that the initial EPP Term ends on a Month where an actual meter read is scheduled. In such event, the amount that would be payable to SaskEnergy by the Customer pursuant to this Schedule for Gas actually consumed from the beginning of the EPP Term to its end or earlier termination, shall be compared with the aggregate of the monthly installments actually paid by the Customer during such time, and the balance credited or billed in the usual way. After the first EPP Term, SaskEnergy will automatically revert to a twelve (12) Month EPP Term. Amended – August 6, 2013 3.3.5 Notwithstanding anything in [3.3.4], SaskEnergy may require Commercial Small and other high Load Customers to commence the initial EPP Term during the summer months (June 1 to September 30) so as to reduce the credit exposure of SaskEnergy. Amended – August 6, 2013 3.3.6 SaskEnergy may, at any time, revise its estimate of a Customer’s Gas consumption, and accordingly, may increase or decrease the amount of monthly installments payable by the Customer. Amended – August 6, 2013 Pre-Authorized Payment Plan 3.4.1 The Pre-Authorized Payment Plan (PPP) is a plan which allows Customers to pay their Natural Gas Service bills by having their bank account debited. Under PPP, SaskEnergy will issue an automatic debit on the Customer’s bank account for the amount of the Customer’s Natural Gas Service bill. PPP is generally accepted on any chequing account from a recognized financial institution in the province. The plan can also be set up on a savings account with the proper verification from the bank. The verification shall be in writing and shall confirm the Customer’s bank account number. 3.4.2 The Customer will automatically remain under PPP from Year to Year until terminated. The Customer may terminate PPP at any time by giving seven (7) Days’ notice of termination to SaskEnergy. SaskEnergy may terminate the PPP at any time, without cause, on thirty (30) Days’ notice, or without notice in the event that the Customer: (i) ceases to be a Customer, (ii) fails to meet any obligations under this Schedule; (iii) becomes insolvent (however evidenced); (iv) commences, authorizes or acquiesces in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors or has such petition filed or proceeding commenced against it; (v) makes an assignment or any general arrangement for the benefit of its creditors; or (vi) fails to maintain payment of sums due to SaskEnergy’s satisfaction.

3.4

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3.4.3 Customers may qualify to enroll in both EPP and PPP. Amended – August 6, 2013

3.5

Consolidated Billing 3.5.1 Customers will generally receive all of their Natural Gas Service bills for different Premises consolidated on one statement. SaskEnergy may, in its sole discretion, and from time to time, or at any time, issue separate bills for individual Premises, and vary the time of the month at which the separate bills are rendered. Amended – August 6, 2013 Returned and Late Payments 3.6.1 A Return Payment Fee may be added to the Customer’s account for payments returned or not honoured by a financial institution for any reason, including but not limited to: cheques returned ‘NSF’, stopped payment, funds not found, funds frozen, account closed, or account not found. The current Return Payment Fee is found in the attached Tariff of Fees (Appendix C). 3.6.2 SaskEnergy may refuse to accept payment on a Customer’s account when payment by cheque is drawn on a form other than a bank cheque form. In the event SaskEnergy accepts payment by cheque drawn on any other form, the Customer shall be liable for and pay to the Company all charges and costs incurred to process the cheque. 3.6.3 SaskEnergy may charge a Late Payment Charge on sums owing to SaskEnergy and past due. The Late Payment Charge is a debt due to SaskEnergy and SaskEnergy may recover that amount in the same manner as the principal sum. 3.6.4 A Late Payment Charge shall be payable on estimated accounts in the same fashion as bills based on actual readings. An adjustment to a subsequent bill, based on an actual meter reading, will not increase or decrease the total Late Payment Charge due. 3.6.5 The Late Payment Charge is subject to change from time to time and is calculated from the Late Payment Charge date indicated on the bill, which date will be at least fourteen (14) Days after the date of rendering of the account. The Late Payment Charge date is not the due date. Please reference the attached Tariff of Fees (Appendix C) for SaskEnergy’s current Late Payment Charge. Deposits and Security 3.7.1 SaskEnergy may demand and obtain from an Applicant or Customer a Deposit or Security in an amount and in a form acceptable to SaskEnergy, before SaskEnergy provides a Service. SaskEnergy’s current Deposit Guidelines are attached as Appendix D hereto. 3.7.2 SaskEnergy is not liable to any Applicant or Customer for any interest on any Deposit or Security provided, unless otherwise agreed to in writing. 3.7.3 Where SaskEnergy has agreed in writing to pay interest on a Deposit, interest will be payable at the Deposit Interest Rate set out in the Deposit Guidelines. A Deposit shall cease to draw interest at the earliest of: the date it is credited to the Customer’s account or repaid; the date notice is sent to the Customer’s last known address that the

3.6

3.7

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Deposit is no longer required; the date the Deposit is applied or set off against the outstanding indebtedness of the Customer; or the date when Natural Gas Service is Discontinued to all Premises of that Customer. Amended – August 6, 2013 3.7.4 SaskEnergy may, in its sole discretion and depending on a Customer’s account status, credit risk and payment history, repay the Deposit after a period of time, apply (or credit) the Deposit to the Customer’s account, hold the Deposit until the Customer discontinues the use of the Service, or transfer the Deposit to another account of the Customer without notice. SaskEnergy may, in its sole discretion and depending on a Customer’s account status, credit risk and payment history, return Security after a period of time, hold Security until the Customer discontinues the use of the Service, or transfer Security to another account of the Customer without notice. Unlike Security, a Deposit which is no longer required is generally applied to an account and not returned or repaid. 3.7.5 For Residential Customers, an acceptable payment history can generally be achieved by paying all bills in full within thirty (30) Days of rendering for twelve (12) consecutive months. For Commercial Small, Commercial Large, Small Industrial, and other Non- Residential Customers, an acceptable payment history can generally be achieved by paying all bills in full within thirty (30) Days of rendering for a thirty-six (36) month period. Amended – August 6, 2013 3.7.6 The Deposit, in full or part, may be set-off against any sums owing to SaskEnergy at any time, and from time to time, in SaskEnergy’s sole discretion and the Customer may be required to forthwith replenish the Deposit. 3.7.7 In the event of default under this Schedule, SaskEnergy may enforce on Security. In that event, the Customer shall forthwith replace the Security. In the event Security expires or is withdrawn, the Customer shall forthwith replace the Security. Notwithstanding anything in this paragraph, SaskEnergy may require Security to be renewed or replaced prior to expiration. construction, alterations, installation, repair and other work performed by SaskEnergy are calculated on a Variable Charge Basis using SaskEnergy’s loaded hourly rate for equipment and labour, together with all disbursements, travel time, travel expenses, parts and material costs, and other charges, as set out in SaskEnergy’s Cost & Methods Manual, as amended, supplemented or replaced from time to time, which manual shall form part of this Schedule and is available for viewing at any SaskEnergy office on request. In the event of a conflict between this Schedule and the manual this Schedule shall govern. SaskEnergy’s Service Fees set out in the Tariff of Fees and charges set out in the Cost & Methods Manual shall be conclusive evidence of SaskEnergy’s cost of providing a Service. Service Fees and Costs 3.8.1 Unless otherwise provided for herein, SaskEnergy’s Service Fees and costs of

3.8

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4.

MEASUREMENT, CORRECTIONS, AND DISPUTES

4.1

General 4.1.1 SaskEnergy shall furnish, install and maintain metering equipment and reserves the right to determine the type of metering equipment used and the manner of collection of metering and equipment data. Amended – October 16, 2014 4.1.2 The schedule for meter readings shall be in the sole discretion of SaskEnergy. Meters shall be read with such frequency as SaskEnergy may decide. SaskEnergy shall have the right at any time to estimate Customer consumption and to render a bill based on such estimated consumption. 4.1.3 Notwithstanding the foregoing, SaskEnergy may, at its option, require the Customer to read the meter and report such reading in the manner specified by SaskEnergy. A Customer may also voluntarily provide readings to SaskEnergy by telephone or online. 4.1.4 In the event estimates are used, the next bill that is based on an actual meter reading will be credited or adjusted for the difference between estimated and actual use during the interval between meter readings. Where a Customer provides a meter reading, SaskEnergy shall have the right to utilize same, or disregard same in favour of an estimate, where the reading is not timely or appears to be inaccurate. 4.1.5 SaskEnergy shall, at its sole discretion, have the right to remove, repair and test a meter or metering equipment at any reasonable time. Depending on the type of meter installed, it may be necessary for SaskEnergy to remove a meter from Service and install a replacement meter. If the Customer becomes aware of any deficiency in the operation of a meter or metering or Regulating Equipment, the Customer shall promptly notify SaskEnergy. 4.1.6 Where access to a meter or metering equipment is unattainable due to locked doors, the local SaskEnergy office may require that SaskEnergy or its agent be provided with a key to the locked doors by the Customer. 4.1.7 Nothing in this Article [4] shall be construed so as to preclude estimated consumption between the date of the meter read and the date of invoicing, to facilitate multiple Premises on a single bill, Customer reads, or otherwise. Amended – August 6, 2013 Billing Corrections 4.2.1 SaskEnergy has the right to make a billing adjustment in instances where an inaccuracy in billing has taken place. The Customer will receive a refund or a corrected bill, or a debit or credit to its account, at SaskEnergy’s sole discretion. Absent fraud or intentional misrepresentation, no interest or penalty shall be payable by either party on the resulting debt or credit to the date of the billing adjustment. For greater certainty, Late Payment Charges shall accrue from the date specified on the bill when rendered for the correct amount. 4.2.2 If the measurement equipment ceases to register properly, the quantity of Gas used will be estimated by SaskEnergy using the most appropriate method as determined in the

4.2

SaskEnergy Terms and Conditions of Service Schedule

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sole opinion of SaskEnergy. A correction in billing shall be made for the period that the measurement equipment failed to register properly, not exceeding two (2) Years retroactive from the date of discovery. Such methods may include but are not limited to:

(a)

Mathematical calculations and comparisons, including comparison with a parallel meter; The use of the Customer’s check measuring equipment; and The amount consumed during the corresponding period of the previous Month(s) or Year(s), giving due consideration to the weather and connected Load.

(b) (c)

4.2.3 Where bills have been rendered and it is subsequently determined that they have been incorrectly calculated for any reason other than the failure of measurement equipment to register properly, the amount payable shall be recalculated with reference to actual Gas usage. In such cases the recalculation may be retroactive for a maximum of two (2) Years. Amended – March 2, 2015 Disputes 4.3.1 In the event that SaskEnergy or the Customer questions the accuracy of a meter, either party may request that the matter be resolved by Measurement Canada pursuant to the provisions of the Electricity and Gas Inspection Act R.S. 1985, c. E-4 (Canada), as amended from time to time, or such other legislation as may be enacted in replacement thereof. 4.3.2 A Meter Dispute Fee shall be payable to SaskEnergy by a Customer requesting that the matter be referred to Measurement Canada. This fee covers the cost of SaskEnergy removing a meter for testing. The Meter Dispute Fee does not include any fees chargeable by Measurement Canada. Please reference the attached Tariff of Fees (Appendix C) for SaskEnergy’s current Meter Dispute Fee. 4.3.3 In the event that the Customer requests a Meter Dispute Test, and the meter does not meet the accuracy standards set out in the Electricity and Gas Inspection Regulations, as amended or replaced from time to time, SaskEnergy will credit the Meter Dispute Fee to the Customer’s account or provide a refund, in SaskEnergy’s sole discretion. 4.3.4 The party requesting the Meter Dispute Test will be responsible for any fees charged by Measurement Canada, if any, unless otherwise provided for under the Electricity and Gas Inspection Act .

4.3

5.

DISCONTINUATION OF SERVICE

5.1

General 5.1.1 SaskEnergy shall not be obligated to remove its pipelines or other equipment on Discontinuation or Disconnection of Service, or on request of the Customer or Owner. See [8.6]: Alterations to Facilities.

SaskEnergy Terms and Conditions of Service Schedule

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5.2

Discontinuation Initiated by SaskEnergy 5.2.1 SaskEnergy its officers, employees and agents, its Subsidiaries and any officers, employees and agents of its Subsidiaries, may enter, at any reasonable time, the Premises of any of its Customers to Discontinue or Disconnect, for any period of time, any Service to any Customer or remove its property from the Customer’s Premises:

(a)

If the Customer fails to comply with any terms and conditions set out herein, set out in the Act or Regulations, as amended or replaced from time to time, or set by SaskEnergy or its Subsidiaries in any agreement with the Customer; If the Customer fails to pay, when due, any indebtedness of the Customer to SaskEnergy or its Subsidiaries; If, in the opinion of SaskEnergy, or its Subsidiary, modifications or improvements are required to its or its Subsidiary’s Gas system or related Facilities or equipment; If the Customer is not primarily a Customer using Gas solely for heating purposes and, in the opinion of SaskEnergy or its Subsidiary, Service must be interrupted in order to maintain Service to Customers using Gas solely for heating purposes; If, in the opinion of SaskEnergy or its Subsidiary, Service must be interrupted for safety reasons; If, in the opinion of SaskEnergy or its Subsidiary, the Customer is tampering or has tampered with equipment or Facilities owned by SaskEnergy or its Subsidiaries; If the Contract relating to the supply of the Service is terminated; If the Customer makes an assignment in bankruptcy or is insolvent; or If the Customer fails to provide any Deposit or Security requested by SaskEnergy or its Subsidiaries. If the Customer Discontinues use of the Service;

(b)

(c)

(d)

(e)

(f)

(g) (h)

(i) (j)

5.2.2 If SaskEnergy Discontinues or Disconnects the Customer’s Service, the Customer must still pay any amount owing to SaskEnergy. SaskEnergy reserves the right to collect its Disconnect Fee from the Customer when the conditions set out in [5.2.1] are met, [5.2.1 (c), (d) and (e)] excluded. Please refer to the attached Tariff of Fees (Appendix C) for SaskEnergy’s current Disconnect Fee. 5.2.3 The Landlord shall be responsible for SaskEnergy’s Disconnect Fee in the circumstances set out in Article [7] herein.

5.3

Customer Requested Discontinuation 5.3.1 The Customer shall communicate with SaskEnergy if the Customer intends to Discontinue Services and provide seven (7) Days’ notice of Discontinuation.

Notwithstanding such Discontinuation or termination of Service, SaskEnergy retains its rights of access, as outlined in this Schedule, to its equipment on or in the Customer’s property and the Customer remains responsible to SaskEnergy for any amounts payable under the Contract up to the latter of the date of termination or Discontinuation, or the remaining period of the Contract.

SaskEnergy Terms and Conditions of Service Schedule

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5.3.2 If the Customer Discontinues Service, the Customer shall provide SaskEnergy with access to read the meter, provide forwarding mailing and contact information, and pay all amounts owing on the Customer’s final bill. 5.3.3 All requests by the Customer, Landlord or Owner to Disconnect Service may be subject to a Disconnect Fee as determined by SaskEnergy. Please reference the attached Tariff of Fees (Appendix C) for SaskEnergy’s current Disconnect Fee. 5.3.4 The Landlord shall be responsible for SaskEnergy’s Disconnect Fee in the circumstances set out in Article [7] herein.

6.

RECONNECTION OF SERVICE

6.1 If Service to a Customer is Discontinued for any reason described in Paragraph [5.2], or at the request of the Customer, SaskEnergy may require the Customer to do all or any of the following before restoring Service: Amended – August 6, 2013 (a) Pay all outstanding debts to SaskEnergy or its Subsidiaries or enter into a payment arrangement satisfactory to SaskEnergy; (b) Pay a Service Activation Fee as determined by SaskEnergy; (c) Provide a Deposit or Security in an amount and in a form which is acceptable to SaskEnergy. Please reference the attached Tariff of Fees (Appendix C) for SaskEnergy’s current Service Activation Fee. 6.2 A Service Activation Fee paid or Deposit or Security provided pursuant to [6.1] is in addition to any other fees or deposits that may be required pursuant to the Act, the Regulations, the terms and conditions set out herein or the terms and conditions of any Contract between the Customer and SaskEnergy.

7.

RENTAL PROPERTY PROCESS

7.1 SaskEnergy, in its sole discretion, may refuse Natural Gas Service to Customers or potential Customers who are or identify themselves as Tenants unless a separate Written Service Agreement is entered into between SaskEnergy and the Landlord, in a form acceptable to SaskEnergy. Amended – August 6, 2013 7.2 SaskEnergy offers a standardized Written Service Agreement to Landlords. By entering into such an agreement, the Landlord consents to the provision of Service to Tenants and provides instructions to SaskEnergy in the event a Tenant is Discontinued from Natural Gas Service or Discontinues Natural Gas Service. Amended – September 7, 2016 7.3 Unless otherwise provided for in a Written Service Agreement, SaskEnergy may Discontinue Service to a Landlord or Tenant in accordance with Article [5]. Amended – August 6, 2013 7.4 Where the existing Natural Gas Service is known to be in the name of a Tenant, and no Written Service Agreement is in place between SaskEnergy and the Landlord, SaskEnergy may, in its sole

SaskEnergy Terms and Conditions of Service Schedule

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