Terms & Conditions of Service

Short Notice Charge = Q x P, where:

Q

Means the Customer’s consumption (in gigajoules), as estimated by SaskEnergy, acting reasonably, for the period from the Service Transfer Date of the Customer to the following November 1st; and Means the price to be assessed for the Customer’s Gas which is based on the difference between (a) and (b) below at the time of the Service Transfer Notice: (a) SaskEnergy’s then current Gas Consumption Charge (converted to $/GJ); less (b) The market price of Gas per gigajoule for the period from the Service Transfer Date to the following November 1.

P

If the price of Gas utilizing this formula is zero or less, no Short Notice Charge is required.

For the purposes of the calculations, the market price shall be the bid side of the market price of Gas per gigajoule at AECO/NIT, utilizing an average of three (3) independent price publications chosen by SaskEnergy, adjusted for the basis differential to the TransGas Energy Pool (TEP). If the Service Transfer Date is not the first day of a month, the market price will be based on the period beginning the first day of the month in which the Service Transfer Date is effective, to the following November 1.

14. For the purposes of this Appendix E, Short Notice Return Charges are calculated as follows:

Short Notice Return Charge = Q x P, where:

Q

Means the Customer’s estimated or actual consumption (in gigajoules), at the sole discretion of SaskEnergy, acting reasonably, for the period from the Service Transfer Date of the Customer to the following November 1st; and Means the price to be assessed for the Customer’s Gas which is based on the difference between (a) and (b) below at the time of the Service Transfer Notice: (a) The market price of Gas per gigajoule for the period from the Service Transfer Date to the following November 1st; less (b) SaskEnergy’s then current Gas Consumption Charge (converted to $/GJ).

P

If the price of Gas utilizing this formula is zero or less, no Short Notice Return Charge is required.

For the purposes of these calculations, the market price shall be the offer side of the market price of Gas per gigajoule at AECO/NIT, utilizing an average of three (3) independent price publications chosen by SaskEnergy, adjusted for the basis differential to the TransGas Energy Pool (TEP). If the Service Transfer Date is not the first day of a month, the market price will be based on the period beginning the first day of the month in which the Service Transfer Date is effective, to the following November 1. 15. Short Notice Charges and Short Notice Return Charges payable under this Schedule shall be paid as liquidated damages and not as a penalty. The parties acknowledge and agree that actual damages are extremely difficult or impossible to determine and that such payment is intended

SaskEnergy Terms and Conditions of Service Schedule – Appendix E

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