Union Gas Limited

Union Gas Limited Binding Open Season – Peak Storage Service and Additional Firm Injections and Withdrawals – Invitation to Bid

February 16, 2010

Union Gas Limited, a Spectra Energy Company, hereby invites all existing and potential shippers to submit binding bids for Dawn storage starting April 1, 2010.   All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on February 23, 2010.

• View the Open Season Description 
• View the Peak Storage Contract
• View the Peak Storage Bid Form

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Service Parameters – Peak Storage Service

• All contracts awarded will be 100% “take-or-pay” and will be billed monthly, prorated over the term of the contract.
• Injections:
  • 5% of Maximum Storage Balance (“MSB”) daily on an interruptible basis.
• Withdrawals:
  • Firm withdrawals in all months except March and April at the rate of 1.2% of MSB daily, regardless of balance level at or above zero (no ratchets); plus 3.8% of MSB daily on an interruptible basis.
  • Interruptible withdrawal period from March 1 through April 30 at the rate of 5% of MSB daily.
• Receipt and Delivery points shall be Dawn.
• Cycling Charge:
  • After the first storage cycle each year (to be reset every April 1), injections into storage and withdrawals from storage will each be at a rate of $0.05 CDN/GJ.
• The first storage cycle is complete when the cumulative quantity of all injections and all withdrawals equals two (2) times the contracted MSB.  "Maximum Storage Balance” shall mean the maximum quantity of storage space available for shipper’s utilization.
• No commodity charge and 0% fuel on receipts and deliveries, with the exception of the cycling charge described above.
• All terms and conditions set out in the Peak Storage Contract will apply and can be viewed on the Union website at www.uniongas.com/openseason.

Additional Firm Injections and/or Withdrawals (the "Additional Firm Service")

In addition to the above, Union invites your bid for firm injections and withdrawals in excess of the parameters outlined above.  The bid for the Additional Firm Service shall be expressed as $US/MMBtu/year of MSB.  This additional firm quantity may be awarded to shipper(s) who are awarded storage space in this open season or may be awarded to existing storage shippers with storage capacity in which they would like to add firm injections or withdrawals.  Bids for Additional Firm Service must be consistent with the term requested on the Peak Storage Service Bid Form for new contracts or for the remaining term of an existing storage contract.

Submitting Bids and Awarding of Service

All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on February 23, 2010.  Union expects to award capacity on or before 1:00 pm Eastern Standard Time / 12:00 pm Central Standard Time on February 23, 2010.

Please provide your binding bid under the above terms and conditions by signing and returning the enclosed Peak Storage Service Bid Form indicating the price ($US/MMBtu/year of MSB), Maximum Storage Balance (MSB) desired, Additional Firm Service if desired and Term.

Union reserves the right to make acceptance of any binding bid conditional upon receiving reasonable financial assurances for the obligations pursuant to this Open Season, if deemed necessary.

Union reserves the right to make its acceptance of any bid conditional upon satisfaction or waiver of conditions precedent set out in Section 3.01 of the Peak Storage Contract.

Each bid will be evaluated separately.  If two or more successful bids have an equivalent value, and insufficient capacity exists to satisfy all such bids with an equivalent value, the capacity allocated to such bids will be prorated.

Union reserves the right to reject any and all bids at its sole discretion.  Without limiting the foregoing, Union may, but is not required to, reject any bids which do not conform to the Open Season, are incomplete with the terms and conditions outlined in this Open Season, contain additional or modified terms, or are otherwise deficient in any respect.

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