November 28, 2013...costs equal to the utility's weighted average cost ofcnpita1 1 in the utility's natural gas c1uss of servke rate base. 'LNG rate schedule and LNG purchase agreement

November 28, 2013

DIREC1'ION NO. 5 'fO THE BRITISH CQLUlVIBIA UTIIJTIES COMMISSION

Contents 1 Definitions 2 Ap_plicatio[t 3 CNG services and LNG services 4 Bxprmsionfacilities 5 LNG rate schedule and LNG pu~chase agreentent

APPENDIX.1

APPENDIX2

DttfhliUons

l In this direction:

<{Ad;' mea11s lhe Utilities Commission ;let; ('applicable cnstQll~ers'' means custg1ners ofa uti lit yother than customers receiving

service (a). tmder a fixed mtc. or (b) in the Fort Nelsmtservice area of the tltiHty) llnless the Fort Nelson service

area no longer has a distinct rate· base;

"CNG}' tne<lns compfcssed natnral gas; ncNG service;' means a service thatincludes one or both of the following:

(a) compressing and dispensing of natural gas Hu:ough specialized fuelling facilities or equipmet1t;

(b) transpoxthlg CNG using specialized trailers or eqoiptnent;

"eX}>ansionfacmHes'1 meansLNGJacUities to be constnteted, owned and operated, after this direction comes into force. by a utility atTilburylsJand* Delta, British C6h.Hnbia;

Hfixed rate}} means u charge for natural gas service not subject to adjustment based on changes. ,in the revenue requirements of a titility;,

'{LNG}' meansli<mefied ~mtnrat· gas; "I.~NG.dispensing service}' means the dispensin.gserviceteferred to in sectitu1s 3

to 5 of the LNG .rate schedule;

HLNG fadHtt' Jneans a faciHty that prodtu::es~ .stores !~nd dispenses LNG and, in sonw cnses. vaporizes LNG;

nLNGrate schedule" means the utility*s Liqtmficd Natund GasSales, DiSJ)ensing and Tnmspottaiion Service Rate Schedule 46 {l$ set out in Appendix 1 attached to this direction;

{{l,~NG service1' means one or more of thef91lowing services:

(a) procurement of natural gas and electrical power for the- purposes of LNG production;

(b) ptocurementofLNG; (c) ttansntission and distribution of natural gas to an LNG facility;

(d) t)mduction of LNG frmn naturalgas at an LNG facility;

(e) storage of LNG; (f) provision or sale of LNG, including LNG dispensing service; (g) use of LNG fuemng stations a'nd fuelling equipment;

(h) transportation ofLNG, including LNG transportation service; (i) use of cryogenic receptacles, .including; but not limited to~ tatlkers~

containers and vessels; {{LNG ·b:ansportatimt setvice,· .means the transportation service referred to in

section 6 ofthe LNG rate schedule;

<futility}' means

Application

{n) FortisBCEnergy Inc. (b) FoxtisBG Energy (Vancouver Island) Inc.,. or

(c) J:tqrtisBC Energy(\Vhistler) Inc.* or ony . of those m1tities, successor entities on amalgamation, merger or consolidation.

2 T~1is direction is issued to the commission under section 3 of the Act.

CNG services and LNG services

3 In setting rates under the Act for a utility, the cormnission must do aU of the foliQwing: ,

(a) ireatCNG senike and LNG service~ and all costs and reven\tes (~!~ted to those ser\ilcest as pad of the utility's natural gas class of service;

(b) nUocnte aU costs and revenues related to CNG service and LNG service to all applicable customers;

(c) allow recovery ofcosts of purchasjng LNG tmder the agreement referred to insf!ctlon 5 (l) (b) of this direction.

Expansion facmues 4 - (1) The conm1ission must not exercise its power under section 45 (5) of the Act in

respect of the expatlsion facilities.

(2) In setting rates under the Act fot· FortisBC Energy Inc.,. the commissiqn must do both of the follo\ving: ·

(a) indude in the utility)s natural gas Class ofservice rate base the lesser of

(i) Hm capital costs of constructing the expansionfacHitiesf and

(H) $400 million; {b) include the utility's feasibility and development costs on or after

Janun1·y 1$ 2013} related to the expansion facilities, plus a return onthose

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costs equal to the utility's weighted average cost ofcnpita11 in the utility's natural gas c1uss of servke rate base.

'LNG rate schedule and LNG purchase agreement

5 (1) \Vithin 20 days of the date this direction comes into force, the commission mnst do an of the following: (a) issue an order setting the LNG mte schedule as a rt1te for ForHsBC E11ergy ,

Inc. effective on the date the order is issued; (b) acceptfpt filing under section 71 of the Act the Gas Liquefaction, Storage

and Dispet1sh1g Service Agreement between FortisBC Energy (Valtcmwer Island) Inc. and FortisBG Energy Inc. as s(tt out in Appendix 2 attached to this. direction;

(c) issue an order setting the agreement referred to in JJaragra}>h {b) as a rate for FottisBC Energy,(Vunconver Island) Inc .

. (2) The comnussion must not do anything to amend) can. eel or suspend the LNG n1te schedul~l except on application hythe utility.

(3) IfPortisBC Et1ergy Inc, applies to the commission to amend a clmrge. in. the LNG ra~e schedule} the commission must not set the charge by reference to chatges imposed by other providers providing shn.ilar services.

(4) tfbe commission must not exercise ti power under the Act in a \Vay that would directly or indirectly prev¢nt FortisBC Energy Inc. from providing LNG dispe11sing service under the LNG rate schedule.

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APPENDIX 1

FORTISnc~

FORIISSC ENERGY INC.

RATE SCHEDULE 46 liQUEFIED NATURAL GAS SALES;

DiSPENSING AND TRANSPORTATION SERVICE

-., .• ,.,_, ________ , __ ~·--

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fmlfsBC Energy Inc. Rate Schedule 4$

~----~---~--~. ·----TABLE OF CONTENTS

Sc~Uon · P~s~

DEFINITIONS ..... ,,,.,. ............ i ................................. ; ................................................... " .......... 1

1.1 Oe!in1Uons ............ "'"""'"'"""'"''"'""'' ................................................ ~ ................. 1

2 APPtlCAB!Un' .... , ...... , ........................................................ ,,., ............................... ,., ........ ,,.4

2.1 App!!cabl!ity .. ;; ............... ., •. ~ ............................... ; .......... ,.,,, ........... .,; •• ,; ............... " .. 4 2.2 Antendment Qf Rata Sl:.he<lu!e .... .., .................... , ...... ,.'"';, ... ; .... ; ••.• ~ ....... ,. .• ,.,;,,,.,. .... .4

3 CONIJrHONS OF LNG SERVlCE ............ ,. .... , .. ._ .............................. ; ............ .,,,,; ....... , ....... 4

$,1 AvaitabURyoftNGSe.f'lli~~ .............................................................................. , ......... ~;4 3.2 ti!'nHat1on .oo Sh'H~)r~rm tNG.Servioo ...... ~ .................. , ................................... ;.,.,,,,4 3.3 tNG Servfre Pnooty Yvhere Tner\1 Ate Competing Request~ for LNG Servioo ,,, .. 5 3.4 $potl.NGServlceAv;ll!abi!ity., ...... ,,.., ... , .... , .• ,,,,,.,,,.;.;,,,,;~ .... ,.,~,"·•·•···"'""''"'''''''"5 3.5 LNG Sat\'fce Subject to Curtai!ment •. ;,,;,.; ........ , ........ , .• , •• , ...................................... s

4 PURCHASE OF tNG ...................................... ,,;.~ ....... ;,,,.,,,,,.,.,;;, ..• ;; • .,.,.,;,,., .... ;,;; ................ Ji

4.1 Detern11nstlon <1fContract Dei:I~JmL .............................................. ,,; ..................... ;5 4.2 Aitcx::ation of Conkact Oernand ................. ,., ............. ., .... ; ................. ;, .. ; ........ , ........ 5 4.3 Pur <:has'!~ of.lNG ······~~, ............ , ................................. ,.., ........ ~~··~ ......... ~ ................ ,, .... 5 4~4 Purchas~ Over Contract Oemand ,; ... , ................ ~ ........ , .... , •. , ...................................... $

6 DISPENSING OF lNG,. .................... ~ ...... , •. ; ... ,,; ................ ,.,, .................................... H;, • .,,.,,;.$

5;1 Dispensing ol l.N$· ...... , ............. ., ...... ~ ..... ~""·"'"''"'"~"'''p·~~··~·;• .... u .... ,. .......... ~ ......... ~ ••• 6 5.2 Curlnil(fltJOI of Dispensing Serv~ ....... .,, .• ,.~ ................................... "' ......... , ........ 6 5.3 Notice of Curtaifrn~nt .. " ......... ,,,; •. ; ••.•• """''·······..-""''"········ .. •··•·••··• ........................ 6 5A 1H!e Tr~nsfer .~ ..... / ... ,. ........................... , •• ;,. . .,, ............................................................... 7

6 TRANSPORtATION OF lNG •";·--··•· .... , ..... ;;,,;,, .. ,,;,.,, ... ,, .• ~~;.~ ...................... ,,,..,,,,, .. , ....... ,., .• 7

6.1 Tr<:~nsportatlQ.n <1f LNG .......................... ~.,.,, .. ~ .......................... , .... , •• .,,,,,,,,,.,,,,,,,,,,,..,.7 $,2 Av.a11abliiiy of LNG Transpor!afitm SetVlCS>~ .... ~ ..... f''""''··~., .............................. , ..... 7r 6.3 Charges !of LNG rransportation Servi~ ............. ; ....................... , ......... , ... ,. ......... 7

7 RIGHTS.ANO RE.SPONSlB!UTIE$;.~, ..... ,,,.;, .. , ....... ,, ... ;;,,,,,.,,,,,.,.,..,,.,,,., ..................... , ...... ;7

1.1 Rnsponsibllity forf'Amplianee ........ ;···· .. •• ....................... ,; ............................. , .... ;;.,;, .. ] 7.2 Righi to.Ha(us1:1 ........................... ,.. ....... ., .... : ............ ,,.,.,; ...... ; .. ,.,,,, .. ;,;.,; •• ,,,,,' .......... ~a 7.3 Hespons!lility fqt F.metgency RcsponsQ.,.,,,,,; ................... ;, ... , •• ,.,,.,, ....... ,,,j, ....... ;ca 1~4 Cvstqrn~r·s.Responsib!HtY ........ ;;,,;,..,,,.,.,.,,,,,.,, .. , •• ·.,,,,, ..... , .... ,..., ..... ,, .................. a 7;5 Req.uited Jnsvrante .,.,.,,, .• , ............... :. .... ;, ................................................................. S

8 TERfAS OF PAYMEliT ......... , .................................. ; ................ ,.; .• ,,;,,,,;, ........... , ................ Ji

B, 1 lNG ScrY.oo Chatgos;,,., ...................... , ...... ,.,. .................... ~ ......... ~ ............... ,; .. : .... S 8.2 LNG Tfans[i<)rtaUcn Setvioo Ctwtges ......................................... ,;; .. ,; .............. :.,.10 8.3 Currency ...................................... ~····,, ..•.... ,,., .............. ".""~~ ............... ~ ....... ~ .. ,,.,,.,·10

-----~----~----~--·---··~---~---~

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FortlsBC En~rgy lnc. Rate Sch~!t>Ia46

9 DAILY LOADING AND SCHEOU~lNG ........ , ......... """''''··~, ... ~ ••. ,.,,,,.,.,,.,., .... , .......... , ... ,. .. fO

:9.1 Reqtlested Quantity and loading Schedule .. ,., ........................... ,.. ............. , ... , •• 1 0 9.2 Adjustment of loading Schedoie:.. .................................... ;,; ........................ ., ....... 10

10 TERM OF LNG AGREE~1ENJ,..,. .. ,,,.,., .......................... ,i,,.,; ............. ,., .. , .................. ,., •.. ;i0

10.1 Rell.ewat ................................................. " ..... ,. .................................................... dO 10.2 Early Termtnalion by forli$BC Energy ...................... ,,,.,,,.,; .............. , ...... ;.~ .......... 11 10•3 .Su!Viv.al (if COvenants .......................................... i ........ ; ............................... ,, .......... 11

1·1 STATEMENTS ANO ·PAYMENTS , ................... ,_ .... , ............ .,, • .,, .. ,, ..... ~ .. , ... ;~ .............. ,,,,,,,1··1

11.1 Stah~Jncnts l¢ be Provided .,,,,,,,.,, ............................. ,.,.,., .. "" .............................. ,11 1 t2 Paymont 11rid tat() Paymant Chargo ,. .. , ...................... ,,., ... ~ .. ~ ..... ; .... .-.. ;, .. ;,., .. ;, ... 11 11,$ Examine !Jon. ofRaeords: ............ ,, .. , ..................... .., ........ ,., .. :,,,,,,.;;, .. ,,.,i,, ••..•• ., .. ,.,,., 11 11.4 Securlfy .................... ,, .... ., ........................ ,,.,;.,,. ........ ,. .... ,;,;,.;; .... ""'''""..,, .. ., ............ i1

l2 ~.U:ASUREMENT .... : .. ,, ............................................................... ,· .. ; .... ; ............. ,.,,,;,,,,,,; ........ 12

f2. i Uoft:of f.i~;,aSIJrernent : ............ .,.,,,., ................................................. , .. ;,,.,,,.,,,,,., .. ; ..... 12 12.2 Oeterminatl¢rt uf Quantity .................................................. ~ .... ~ .. .,.;., .. ,., .. ,; .... ,,.,,,,, .. 12 ·12,3 Conversion to Energy l)nits ...... , ................................................ ,,,,,.;.,;,,,;.; ..... "';.,.,, i2

13 DEFAULT .OR BANKRUPTCY ................. ,,. .... ., ..... , ..................... ;,,,,,,,.,.,, ... ; .. , ................... f3

13.1 O.ofauft·bytha Customet ................................. ,.,.,,.,, ... ,., ............... ., ... , ...... " .. ' .• .,; ... 13 13.2 Bankruptcy <Jtlnsotvency of ilia Cuslomar .... ~·~·~···· .. , ................. ,. ........................ t3 13.3 OhflgaUoos of Customer upon Suspenston or Tarrnln~Uon ............... ;,. •• ~ ............. 13

l4 NOTICE .................................... ,, .. ,., ............. , ................................... ,.;; .................... , ....... ,, 14 l~t-1 NoUt~ ......... ,.,,. ... ,., • .,; .. ~ ......................................... .,. .............. , .............................. 1.•' l4.2 Specific NoUcas ..................... : ............ , •• ., .................... , .. ~.··~·· .. ···;.; ••.. ~.~· .. ·~·.···· ........ 14

15 lNDcMNlJYAND UMIIAT!ON ON UA81U1Y ....... ., ................. , ................ ,, ... ., .......... ,, ... i5

·15A lknHatlon oo .Liability·;, ... "'"'""'···· ...... " ............... ;, ............................... , ............. , ... ,, 15 15.2 Custornor Indemnity " .............. ,,;.., ........................................ , •... ,., ...... .,, ............... ;15

16 FORCE ~AA.JEURE ;·., .. ,. ....................... , ...... , .. ~ .. ;.,,. ......... , ........ ~ .............................................. 15

1SJ For(tJMajetue·,,..,, ................... ,.,,,.,, ............................. ;· •• , ...................................... ;iS 16.2 Curtat!mer,t·No~ ................... ;,, .................... ; .• , ......................................... ; .......... ;16 ·1(t3 Excqp!lons ,;;,,.,., ... ,;,,., .............................. ;,,. .. ,.; ... ; .. ,,,,,,,.,,,,. ..................... ,.,. ... ,:.10 10.4 Non~u to Resumo .; ................................................................. , ... ,,; .......................... -t6 18.5 Settlernont of lahourOisputes·, ................................................................................ ,.iO 16.6 No E):cn1pUoo for Payments ......... " ............... ,.. .. , ... , ............... ,.,, .•.• , ....... ,, . .,, .. ,;,.; .. ;i6 1G.7 Periodic Repair by Fcunsuc Ermmy ................. ,., ... ~, ............. ;.,; ........... ; ... , ........ ~. 16

it DlSPUTES .............. , .. ,., ............ , ............ ; .................................... ,., ••. , ............. ; •• ,,, .......... ., .. 17

fl. 1 l\.teditJHon ......................... , ........................... ,,., .... , .. , ...... , ........................................ 17 17.?. AtbiiraJ.ton , .... ~ .. ; .. ,,..,::_ ......................................................... , •. :·· ...... ;· ............ ~·.,,..,,~ f/

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Fortl$BC El'llit9Y Inc. _;.___ ____ ..;........~"'-·: .. ···-·--- ..... ·.----··---~-~~-----__;_R.;;;..;a..:.;:;te,.;.;.$;.;..ch;;.;;.· ?d.::..;u:..:...Ie:..,_4...:..,6

11.3 AvltJi'd .•..•... ~ ......... ., ........... ;,,;,; ............................................................................ , ...... 11 17.4 cost$ ....................................................................................................................... 11 17.5 Obligatrons ConUnut) .... "'''"······· ..... ,. .......... ., ........... ,'"',;· ...... ; •• ,.~,,,, .. , •• ,.,.,,,,,,, ...... 1.7

18 1NTERPRETAliON ................... ., ............. , .................. ,,,,,,~ ..... , •• , ••••• , ... , ... , ....................... ,.,..18

te.1 lntasprotati<~n .............................................. : .......................................................... ,·18

19 f,liSCEllf\NEOU$ ··~;,,,, .. ! ................. ,,,,,.,,. ...... , .................................. ,,,, ....................... ,, .. .,,,; 18.

·19.1 Waiy&tn,,.,,,,.,.,, ..... ,,,..,-. •••• ,,,.,;.,,,,,, ..... ,,,,,, •. ; ... ;,;.,;~.;,,,,,,,,.,~ ••.•. ,, ... ,,.,,,,;,,,,,,,,,,,.-.:.•·"1& · 19.2 Enurem~nl ••• ~ •••. ,,., .............. ~ •.. : ...... ,,;,,,,,,,,,.,,,,,,.,, ..... ,,,,,,,,, .•. ; ......... ~ ........................ tS 19.3 Assfgnri1ent. ........................ _.,,;;,,; ............. ,; ........ ,,.,,, ... ,,,,,,, ..................................... , •• l8 19".4 tavl,._ .................. , ................................ , ......................................................... ,.,., .• _ ... ;t9 19;5 Tin!& rs of Essence: ................ , •.• ; ........... ,. ... , .......................................................... ,. •. ~~t9 1$.6 Su~jectto t~gi$iatlon ··•·l.''·""'-''"'"''"'"'"'·'''"'''-'''''' ... ,, ......... ;:•···· .......... ~ .......... ~; •• ; •• 19 1Q~1 FV!fh~U·M*IUft!fl.U& .... , .. ,,. .. ,,,.,.,.;,;;,,;,~••·~""''·•••·•~··••o•~••'•·'•'•"'.'''""''~;,;;,.~,,,,,,.;,:;,,.~,,19 19.8 Form of Piiymants ,,,, ..• :.; ••. ,,,;;,,; .. ; ... ;.,, ...... , •••.••. ,.,,;;;._,,.,,,, .••••. _ ... ; ..... \ ................ , .......... 19

TAStE OF CHARGES FORlNG SERVJC.E .• , ............................. ..,. •.• ~ ...... , •• ,,,,,,, .• ,,., ....... , ..... , ..... , ... ~1

LNG TRANSPORTATION S~f\ViCE AGHEEMENI ......... ~ .............. ,,, .................. ,. ............... ;TA4!:1;.1

1 D&finiUons

1~ 1 Definnton~-ExceptWhcro the context requires Q!hen•Js$. all words an.d phras~s dennoo oofow Qf in lM. Gemnal TQfffiS ~nd Conditlon~ of fortJsact:n(}rgy Inc. (FoliisBC Energy} and used fn il'lis Rata S~l:l~vfo nave lh$ meanil'lg$sot ol,lt baiaw ~;rin tho Genarat Terms and Conditloos of F<lfUsSC ~nergy. \\'her~ any efthe dsfin11i(}l11> set out ba!<lwtonfiicts with lli.a rleflnltions intbe Genar~l Ta.rms ~nd Conditions offoctlsBC Energy, tha definitlcns set out below govent

{{!) AvaHabJ~UlG Capat,;fty -means the Iota! quantii'J of LNG av~ifabJo for s~de to tl!! Cu-stomers from LNG Fac~lilies under this Rate $cl1e{/ulaas rlf!termined by FurlisSC Energy fn Its sole disctefiml. • Foftj~BC Enero}"~n.let~rminalion ot !he AvaUab!e CN!J Capa~iy may ~ns!der .F<JrfissC EnetQy'.sa~e$Sffhl!i\ <lNis overall LNG Uquefactr~n and storag~ t$qu!r~mentsiwhlcll !ne{udc provtd!t1$J poal<ing and :eowgen.r;y.!esoOt¢es.

tb) Blomolhano Enurg~ Recovory Char}Je (SER¢}- m~;t<ms t1t? !flar~e approvacl ty the British Colomb!a.lltiliUes·eomm!ssfon th~ti~ ~ppJ~bfefor Customcts s~feeling a ~re~ntago <lfBi<llll!1thafiQ ~s a polil<lll of lli~lt Gas~-

. {c} Co.ntract Osnland -l'l'Yi~ns !fia m!nimtJm quantity of LNG, measuredJn . Gl$a]oulel1. ll'tat forllsac Ener$Y flgree~ to supply and the Customaragfccs {o pur&asaand pay paryean.mderi.M LNG 1\grt:ament. Whl)fherorn9t S:Ut-h q~anUtyis·actva!ly conswnadby lhe·Cust<~m$t.

{d) Conlta~t l'~f»l-n1eahf]llie teun spedfte~Ho thalNG Agfeement. and vtU expire at 12;0{) a,m, Pacllic St~ndard Timnoo lho EXpiry Date,

(e) Custcrnet ~means a P<:tsoo anterirtglnlo the LNGAgreenwnt or LNG Transportatkm Se(lli<» Agrcenlent\•lith FofUsBC Energy.

{f) Day ,....mtHHls any pcnO<f oflW$11\y·fo~r corisecuU'Ie hours ~glnnfng aoo onrl!ng at 1?.;00 aJn, Ptlcffic Standard Time.

(g) oonvory charu~ .... nt~ans tha sum of;

Q} a.l,NG f.acilltyCh8tse. v;hldils thl) ~r,n ~ost p~rGigajoy!~·t9<f~liver na!ti.ral gas from fua lnten::()(lrte~;tkm Point to the LNG F~cllilies, and ~o prOOUC('* stoto, and Disp~nso l)U LNG at lha LNG Facilith;s, oxduding tho Ele:clric~ty surcnargo: and

{ii} an Elaelritity $tJfcllat(l$, .whi~ b; the onitoost p~r G!gajouftlfor~feddcity ccnl)~mod by th:~ LNG Faellilios to prooueo, storo and D~spense aH LNG at thelNG.faei!We~.

(h} Dfspenslno or MY form tif tne wuh D.lspantJo .; means llio act of filling a Tanker with LNG from the LNG Faa1ities~

(f) Expiry Dat~ "*f!toans the d~t!l speciff.ed Jn thl) tf'{G Agr~cn1ent \•;hen sef\1<:e under the LNG Agfeem~nb::eases.

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Oi Force MaJ-eoro .... means any acts of God, strikes. kie!'<ouis; or o1herJtt4us!rial disturbances. eMf disturbances. auesls · $m1 restraints ofn.dqrs. ot pOOela, Interruptions by gov~mm~nt <if oourt <>rdersl prostmt 4t future valid orders of any restll~tQry bodY navins prQp~rlunsdictioo~ acts of the public e(lemy, wars, riots, b!a¢kOUIS, il)~l.Uumtlons, failure or Inability to SCWtii rilat!Jrlafs or labOur by reason auegulatlons ot ~Jtdet$ ofgovernmenl, serious eptdemitiS, Umdsllrles, Ughlnfng, ~arlhqu~kfls, fires. storms, flOOds, wash<Juts, exploshms, bf'~ilkagQ or n~c1denno machlrm.ry,liquefactlon, storaf)e, ~nd dispensing equlprne!lt~ or lines of pipes, .Qr freezing o!weUs or pipa!ines •. or l.ho feiiuraof Gas supply, t13mporal)' or.olliel)'lise, ftcm Jl Supplier of Gas, or a declaration cf fer~ Majoure by a gas Ttanspoi{er lliat resunsJnGa~ being unavailii!>tefor de:Uv~ry atthillnterconn~tl¢n Pclnt; or aoy majQt dlsa~l!l9 &VMtor clccumslanefj in re!atkm.to lf\B OOtmai qpurati<ms ¢f !he party coneer~ed as.a whO!Ect V1hfch is beyond the teasonab!~ (:()Otrol <;f tbfi party df~cUy.affeclcd and·rosuns in a ·rnatorial qei?Y~ rntern,~pl!on (If failure by such party in ~rrying .out its cbl!.gatrons vnde.r Ute R~te·~roo;:lvfo~Fcrc.eM~jet~re events cannot oo due ·lo negltget~CQ of lho part,y da!mloo Fou;t)Mafevw,

{k} Gas - f11ei!f1S tt~bJr<tlgas {in~udtogoocraofadtierl by Fortis8C Energy); or BiQmothane, ora mixture of any or all of tho above~ ·

(l) tnhm~onnectron Point~ means ~s ppintwtu~re the fotil~ac En~my Systom lnter®.rm~Plf> w!tn ll:lo f?~;!W~~ o~ Waslco~stE(letoy fnc. at sufllas;

(n1) tNt:? - n!e3ns t«tue"fied natural gas,

(n} LNG Facllitfes '"'n1eans fua e~ment or (uturetNG pJQciuct.lonand st6rtt~a plants and equipment Uial~rt> 0wn~d ortlp~rate<.t by FodisHC EnerGY orartHlfH.ier rontra~t \'liUl f(lrusB(; Energy to PfoYid!l tNG to FowsBC Energ}t,but ~xdurles ~ny fl)arlnaloadingfaeiiiUas.

{o) t.NG Agr11nment- f]leans tho tlqueffed Natur$1 GasSa!a9 ?nd Olspansi~ Sef'iica Agreement betw~anFortlsSC Enetl)Y and th(J Customer for !he provision of LNG SeMce. a form o!wh!eh Is atta~ed to thfs Rata Schl)dufe;

{p} U(G .$~rvlce- means the seJVioo oflh~ llqoefactr\.ln, stora~& and0tspens1ny of LNG {fOJl1 tho LNG facttftl$S; $Od fllciudcs loog·Tctm LNG SaMe~ SMrt·Tcrm LN.G SeMce 8® Spot lNG · $ervioo.LNG S~Nioo doos nlll ft¥:!0do LNG TrarispOrlallon Si.uVioor>r oiarine !oa(!lng ~erAce.

(q) LNQ Spot Ohamo .... m.eans the LNG s!}Qt G'large per Glg~J®leoflNG ~s set out in the 1'ab!G ofCh~rg~~,

(r} lNGTr.ansportatfon S~rvic~ ~means ili$ optional s?tvk~ pfovlrle~ by fmtlsac Emlf:QY as: further specified in soctiM $ oHhls Hale S(h.EHJ!.;IIelhat 9JI1Sists Qf;

Ql use of a Tanker ovttted or ~r()Viderl by FortlsUC t;ner~,w;

Qi} baulfng via !alld o(!JlQT~nl<~r loaded \'11th LNG ft<Jnllli&LNG r:adlil!es to a Customer d~sfgna~ed l:Jeal!on;

Q!i} · t.mloadlng 9t tNG from the Tank~r; <'Ind. (IV) naufingoHhe emptyt~nkerftcm tha Custom~r desjgnated !~Uonto tt)a

LNG FacHJtias,

··-··--·-··--···-__ .-..:.-"---------~«--~-----~

page IOof48

{s) LNG Transportation S{!ii/lco Agtccment- m~ans th!llNG Trt~tlSil¢rlation SeNlceAgreetnent for LNG Transportation SeiVle& b~Jl\'li1$fl F<>€tisBG Ener(}y and thf;l Customer, ~Jorm of which i$ attaclted to Ulls Rate Stheoofu.

{!} tcng-icrm LNG Sorvico --means LNG Service under lhJs Rata Schedule wHh a rofnlmunl ConuaetTerm of f!vo (5Jycars or.mofe ~nd ~ $pc~~d Contract Dermmd lor lh~ dur~!on oflhQ Contract Teml;

{o} Mfnlmum Monthly Charge - m~ans a m!n1mumMon1b~· clletO~t applicable to. Long·TQtm LNG· St3f\1~ atld ·snort.Jerm LNGSeNica only, ~fcotated .by mu!lipfying one.tvie!M of the anou;;d Contract Demand by the Deliv{}ry Ch:Jrge.

{v) Month -means. $Ub}~.eHo (JOY ~h~nges fr<Jm tlmfJ to l.imarqq!Jired by forusac Energy, the purloo beginning at 12:00 a.m. Padfic Standard Ttryte oo the firot <i<~Y of tile c.ala~darmonlh t3nd. er.<ling t;~t t2:00 a.m. ?adtic Standard Tfme en \he .fit$l day :of 1he naxt su~~d!ng ~ienrlar mooth~

{w) Prqcess fu~l G:as ~ m~ti»~ Gas «ln$umaf.i ifl tho pr(}(fuctkm op .. NG at lhe tNG f~li!ies, w!11ch for2Q1~ and 2014 lsdeem~tjto be tlqUantrty equal l4.) 1% (Qne purcent} :o(lhe LNq Disi}~nsed to fun .Cusb:u.~r. bt.Jt th<.ueaftertJ\$ pllt~4lfl!aga,1s to .be Up{j;)ted annuaily based on lhf) Pfi<>r y~ars actual fuel gas «)nsurnptton at the LNG fa~lilies.

(~} ~ate S~hedufe 46 nt'lbis Raht Schedule .... me~ns !his Rata Scil(lduia.1nclu$!ve :otlli~ app~ndedTahle of t:;)i;uges. tNG Agrcem~nt t4m:1,1f~ppl!~bfe~ the LNG Transportatioo S~:M® Agr~eme11t

(Y} Sh4tt•Ter~tl.NG Setvfc~ ~ m~an$ !htrLNGSeNioo iindarthis. Ratf>.S~ttedtifa \tffih a minim1.1m COntract Term of O!lrJ {1)ycat and a maximum C<Jntr~ct T()mt<>f !cssJhan five (5Jyears and .a .specified C<mtr!!let DE}rnand for ih~ rlur('IU¢0 of th,Q CQiltta~l Tenn.

(z) SpQt !.tlG ~et'Vf~e-means !he Oispen~lng and sales of LNG <ma $poUoad Pa$1$ ton Cystomerat the ~NG Spot Charge f}fft Gigaj¢vl~. as further specified in sactton3.4 (:If lli!$ Rat~ Schedule.:

{aa} S(lpp!ler .of <ltts-:- means ? pattywno s~tr~ nawra!.gasJo ihe Cu$!nrnor or f()(U$8C f.n~rgy. · ·

(f>b) Table ofCh~rgos ..,. mesnsthe appefldadtabl~ .or t~b!os of prices, teas <.1nd charges.

(el?) "J'ank.,r.- means a Cl)'ogente re<;eptacfa Used for ;ee8lvf~9~ stming and tt60SJX1rlifl!J tNG,, including \'#iUwut flm1t~tf<m. wrtable tanker$, ISO colltatrters, ot olher slmitar ef!vlprrtent

(<Jd} ira~sporter~ m&?n$i1fl the case. of the lnJa1u.l and lower Mainland s~rvka areas. Westcoa$l Enet~ foo., fortisBG HunUngdonfnc •• ~nd.any olhar gas plpolin& transpoftai{Qn ccmpaiW e.onnected to thti Jactlil.it'l$ of FotUsBG Energy ft<>m whicll Forlis8C Energy recQives n.abJra! gas forth a ptJrposos ofnatvralg~$ tmn~rxnta!ion or te,safe.

page 1 f of48

2 AppU~abilily

?..1 AppUeabllity ~This Rata ScMdui~ appUiis to the tN~ S~f\'iCQ pTovidcd by fortis8C Ener9y rwm: fueJ.NG fa.;Uilies. ThlsRate St:htJdula also $pplies to !he optfonal tNG TransponaUon Setvke ff a C\isl<Jm~r ~lects sucl'l ¢!1HO~Hll ~~~Vice.

2;2 Amondmontof Rate Seboduf~- Atneridment~ to this Rata Schedule must be fn ac~otdancawith the Dittl<:tlon lo !he British Cotumb!aU!lli!ies CQmmlssklnrespecUng FortisBC Ellel\l:ls Uquetiarl Natvrar Ga's $eN1oo atld CQI11JReSS4dNa!ural Gas Servi~.

3 Condltlons ofl.N<l $orvico

3.1 Availability <lfLNG Service.- fortisac Energy will Mtyptov1rl&l~tG.Servlet: kfa Customer if

(a) ~dt'!quateeapadty ~\its on the fortisBC ~netgy Syst~m;

{bj lli~u~lsAvaitablelNGCapaclty lhaUs JWh!readys!Jpjectlo the Contra~t .O~rilaf\d uqdat LN(3 N;tre~ments Jot LOI'lg~T f}tm l.NG Service' Qt ShwHerrnLNG Service; and

(c) 1M Cvstotimr has fJntored !nt9a lNGAgre:emant

fortlsBC>EnerQy Will cenda:avcr to provirl<t LNG ~9!¥1~ ftcm~me of Uta l.N() FacliiUes s~teqed ~y th9 Gustomer:. rn Jts ~NG AQt~emen'~ but re~eNG$1J1f> rlght.Jn Its sole dis{;reijl)n, to desl~nale atllte tim11cfentering Ina lNGAgreamanl andfqr dl.l.rfog !he Contta~Jt Term a no !her facility fot mspans!ng soma or ell oflitG ContractDermmrl,

3~2 · Llmitttllon on Sh!)rt·T~rm t.NQ Sorvi~o~ if, in lhedatermln~tionof ForlisB<}f;rtfU!JY~ th$ sumnfiill) C<mtract Oam~nd Qfa!llNG Agraemf1nts forShort .. T~rm LNGSeNi~ ~xet~eds 20% of llie Avt~llafilf3 LNG Capacity. fwtisBC Encrt}y may itJ Hs sole d!SCtstion:

{a) dedlna to Goter it1to new lNGAgreements for $horFTerm LWG $ani~; or

{b} Umit tno C<~ntiact D~mand ttrtdar new tNG Agreements fct Stmrt·Teun LNG Stlrvltc.

3;3 tNG S~tVi(;$1 t>rlodty Wbut(} There Are Com~eUng Raqu~stsf~r LNG s~zvi.ce ... in aUocatlttg j\vallablelNt) Cap~diythat Js not already t001f11lttedas Conlr~ct Demand tmdct 1! UtG Agre~m{)nt 8nlOf\g eompeli~tg rcquQS{$ (orn~w Long-Term LNG Sawioo ¢( Short· Term LNG SetVI<:e, fortisBCEnergy wl!lgiva pllotily based on

(a) fifst.lilnglh a!CcottaclTfJrm; with Jonserterms having prlorlty <~ver $hcrterteutls;

{b) a~Wlf lho dasirJ:~d ContractTerrnfs the $?~rtle formoro manono poton~alCttsiofner&* lhe.1 !>y volume. withl$rgervotumas h~ving pctorlty ov~;r $tnallef volum¢S•

3.4 Spot UlG Stlrv[ctt tw~!l~blnty -Spot LNG SeJ\'foo ls ijla!OW6$IPrfurily LNG Servi~ and \Yl!J ~o condiUon<IIlfp$Od qn tf1a availabUlty ()f ~wfliclenl ~pae{ty tom~ining ;:tftar deduding the Con((act.Oaman~ ftam at( tNG Anmemcntsfortong· Term LNG Setvice and Short·T om1LNG ~er;ice from !he/w(litabl& LNG ~apacuy. Fortlsac Eneroy is under no ~bt~atloo ta wserve pt$Ot astdoAvailablotNG Copaeltyforeithtlr ntJ.w ¢r&JdsUng Spot lNGSoryloo. The Customer may rnquasl Spot LNGS~rvloo without temttaeting tor L<mg·Term LNG Service or Short·ierm lNG Servi~.

3.5 LNG Serv!M Subject toCurtailrmmt-LNG Se{'(1c~ is $ubje~ to curtailment vnder secfion5,2 (Curl~ilmentof.Dispensing SorJico} of thlsRfltO ScMtMe.

j.mge 12 of43

4 Purchase <>f LNG 4~1 P&tornttnatl<m ·of CotHra<:t Demand ... Fodl~ec. E:n~r9y \'filtqetermfn& the Conuact

0(l'mand for each Custom~r. taking into t;;OnsidemUonthe Customer'$fQr~et~4t Daily or Monthly LNG rfiqttirements, thaAvaifabtetNG Capacity. the Contract Oemartd under otnertNG Asrcoments. and cliH:~rsorli~ end opor~!ron$i mquirements. fortJsBC Ener:sy.m~y. inits $ole discretion, specify a per Customer or per proj~t:t nmlt po the Customers C«~tract oamand.

4.2 tdfoc.aifllnof GpntractDemanq...; At the Uo1e the Cy$tometonlert; into atNG Agreement. FortisBC EnergyYilllalfoe;ato tho C¢ntract0&f11and C!iU?lly overeitnertne Day~ or t~onlhs otthe year, will\ 1he ~Mice of Days or Months being at the sole diset~!lcn offoftisSG Energy,

4.3 Al!omalMt Supplfer <;f LNG- In the ~vcntth~t f'QtflsBC EMr~y lsnot abfo (o supply LNG hyu;ason of~ ®fl~ilm~nf vnders~ctlon <i2 (CurtaiJm~ntofOlspensfll9 S~rv!ca> of tills Rate $ehi;du[t;,Jnl) (:;ustorner m~y i,iti!t4va tefijjlPi~ry tNG s?pplierl.lnlil f¢Jtis8C En{ltgy I$ able tQJ$SUft1u supply and U!e{)ntllfactDarpand shaH bs adjusted by the :amount ofl,.NG opta!nQt;f .ff@l S!Jclt temporarrsvppl!ar.

4A Pur~ha!Hl Ov~rCilntra~t oemanu ~A Cu$tM1~r rr1~y purchasG ln excess of !he C<ml.ract Demand as ~pot tNG S$1VfQJ1 subjecUo se~W;n3A ·(~pot LNG Service Availability), lhe tato pay<1bl~ for any ex~e~s quanUty pun;;naseyd shailh~ the SpcU.oad Cha(ge as spacitio<J In $~~Uon ~;t{LNG set'lft~ <;barges),

5 Olspt)nslng of LNG

5.1 OispM$fng of L~G ~Suol~~Uo se@n 13.2 {Right .to ~esfti~t) tJf tho GtneiQI T~uns ;,111d Ccndi~ons.ofFoJ{IsBC Energy and all Mlha ~erms and (OAdillons ot thts Rale SJ;hedl)le. the Cpstomer or its ~!Jent{~)Js rtJsp(!nsibi~ for dir~cHyconnecUns Janketot Olli!lf simllateqvlpr*ml to lli$ tNG faci!il!os tor Dispensing unrass the Cys(cl)\O( hf!$ eotettd Into a !..NG Tr~msportatlon SeMee A~reement•

6.2 Curhtllm~nhf l>is.t)ensfng Service.,_ Fori! sac Enargy fll<Wi fw any !~n,gth oftlma, cv£1.~!1 uncl~r!hlsRateSchedofe.byreason offer<;~ Ma}eureuoder$~Uon tBJot P~!fodlc R~pair by Fol'ti$8C Eneigy.under $acttfJn16.7 of lhts .Rate Stb~~M~ •. ~ndJor putposes ~ndleasons Vtlder$acl!on 1S.2 (Right to Restrict} of the Gonoral TOUll$ and C<mdllion$ of fortis!3C F.nergy.

!f ForUsBC Energy d~ttHmloes that cuttaltment un(f~;r lilts Sectton is r~qulted, Foili$BC Energy will curtail rn thafoi!O't'ilf'lg man!}~r:

(a) Spot LNG $$Mce wi!ltxl curtailed first. {b} 1Hur\h$r cuttallment fs (equired~ then Soort·TermlN(j S~rv!ce \'!ill po <:iJrtaUed b~fore

·· Long·Tetm lNG Sentice, Shpr{.'fermt~G Sei'Vt~ wi!J be <:urlcl!ed pro-rata based en C9rthi!ct Dat!HlllJ;i.

(c) .Jf furth*Jt eurtailm$nt ls required~ ll)enlong* Teun LNG Sitvice w~U1 a Conlrf\ct Terrn of li¢t.•t~$n tiv~ (5) and ton{tO) years ln dtuiltfon wl1t be ~urtait\ld pr¢·tata bas:ed on G<mtract 0(1maod,

(d} If furlhor cwiaibnent is fequ!red, !hen b?~9·Term LNG ScJYice wilha Cof!li'actlerm longarlhan t~n (:1()} ye$rs Vlill be etutai!oo pro-rata ~asqd on ContraetDomanu.

'-

5.3

8.2

Intl1e ev~o! ofanyrorJaHmantfn exc<~ss (j{12 hours in any giVen Monl.hi th¢n the Mlnlmum Monthly Charge will be prO( a ted lnQ1at .Mooth t<nsflf;ct the full (iuraUoo of !he curtailment. Tho Qvstomerr~malfls<responsible fortha total Minimum Monllily Charge if the curtailment is le$S tnsn 72 hours fn lhatMm'ith.

Notte& ofGurtaUment-' Notwithstandfng~eclton 13.3 {N<ltl«t} of !he GeMr~ll T~nns ~nd Condi!fons, un!()S$ pr$V$nled ~y Force M?j~urc, ¢f!ch no!i¢0 f(om FortisBC EnenJY to the Customer wii{JJesptWt to C:t~rltlifmont ¢fl.NG Servi{X) by FortisBC Enemy wHf~ by t!lleprnme. emaill)rfax and will spqclfy tho potUon oftM Customers C(}flffact Demand that is lobe wrtalled and the lfme1lt which such curtai!menUs to cowmeno>.

rttlo Tnmsfor~ Poss~ss?oll of~ l.iUa to ar.d risk of loss of, damage .to~ or\liimag¢ ~U$ed by Uta LNG sold-and O!~piln,ssclMr~t.tli<fi.lr shall p.ass fwm-FortlsBC Er."rgyto tho C~sto.merat lh~ LN9 Facilities; Sfn~clfica1!y. Ul!e transf~r shalf ~ur at iht; potot of Oisp~osing to ihe Umkt1corat outlet fla®$ of.tne r1.1rtlsUp Energy m~~ fiowmater as appll~ble.Tnfsis.th(} eas(! trrespeetlve of whether F9rU§BG E'n?rsvnas prcvfded th~ Tartlw f<lr lha lNG Tttmsp~!l¢n Sefviee,

Transportation of LNG

1r$O~ppitaUon ?flN$-ine Ct~stbm$t Istesfrinslbt& r*'r !)(P\1~.lng t:tTan~~r ~nd for naulill9 !ha T~'H)ker from lhetNG Fa.cl!ities unless it has enter(l"rHntq a lNQ T ransportatlon smvJce Agteemont Av~Uablllty of diG transportation servlc~ -$orvl~$ pmvld~Jj t.y Fi.)ftissc EJ1~rgy und~rUJfs Rate .Seil~~uie can afso include, at ttW~ptien of~ <;osbJmer. LNG Tr~nsp<>rlaUonSelYica. FortisBC Energy will onlY provide LNG Jraf!SfXldaliM S~!'Vk~ to the Customer if

(a} Ff.1ttlsBC Energy has Tankers;

{b} for~hHC Energy has.~vaitab!a Tan~{lr capacity taklnglntoa~~vnt o!h$rLNG Traosportalion S!lNiooAgre~mants a(!d any$a{cty a(ld regutatctY requifenterits;

(c)- ForilsBC Energy has d~termtn~d i11 its sofi> .drscteb'on that ithas the o;terat!ona! &blfity to provtd& lh& ser~lee;

(d). FortisSC Erierny I~ ablo to wntractvi\lh thlfd parn?slo provide hau!iitg rifthe Tanker althe deslred Urn a$;

(e) tha cvstQrn~r has enteredint9 fl LNG AQ(Q~ntt'il'lt fora (;Qnlra<>t Te(m?t le~$t -$~ l.qng ~s the. ~erm l{)rwhieh lNBTtf!nspoffalkm S~Nlce is sought; pnd

{ij the Customer has ~ntered into a LNG Transportation Se!Vlco AgreomMt

forti~BC Energy i~un?erno QbUgatkmto procwa a~ditional Tanker cap~eity or hauling serv!C(Js to ptovWfi naw lNQ TrMSJXHiatlon Stwlee.

6.3 Charge$ for LNG 'JtanspottaUQn Sorvico "'a Custom{}twho $1Jl¢cts lha l.NO TransportaUon Serviee and enlars1ntt> a lNG Ttaosp<~rlil!.lon Service Agreementwm ba respoliSibleforbllth the LNG Tank~r Ch~ugtrand the Tanker Hauling Charge as specified in $e<;lloo 3,2 pfthts R{tto Schcd\1!0.;

page 14 of4$

1 Rlghfs at1d RosponslbUltfo$

7, 1 ResponslbU!ty for C~mp!lancll -1'he Cts$t®ler, in its acc.aptahco, ft'ansporf, us~ or stofaga of.lha t.NG, shall atalllimes be In oompliaaco with tho tQqiJifemenls of ell applfcebloJaws, mtes, regulations and or~~rs otaoy feglslative body; ~ovammeotal ag£Jncy onMy crmslituted <lu!Mtity now or hemafter, including, llvt n¢1 UmitcQ to. tho federal Tamsoodai!Gf1 of D8fi{JJHCU$ Goods &Uat.d i\$$00at~ regu!alicns aooBriUsh Cc!umbta's .ErwlrcnmW(BI MMtt{len!~ntActand ~ssoe!ated regutat!ons •.•.. lHs th~ sole fas~nsibi!JfY:of the Custonwr to <~nsure that any petsonnef. vahido Qt T$n~or providad by the Customer ortts agent for orsponsfng and lr~nsportaUon meets tl}ose requirements~

7 :;, Right (o Ref us~ -Nor.'lilhstan<ifng subseetion7~1 above. F<JrlfuBC Ener~y at it$ sole 9i;;ereU{)n may te!U$9 to Plspe!1SI"$lNG to lli~Cus~omsr, U lrtFortfsBC Energy's good faith d~lennlo~tion, tho or ttao$porta!Joo of LNG 16 the customer may be <:.ontrarJ to any laws, wlos, . .. . . . and orders ofail)'lagisfatwa body, sovammanlal $QCney or duly oonstitu!ed authority now ot hataaftf3t having juriso~t1on; lnctti<Iing, bvt n(lt f!mlted to. the federal Tt8.nspwtallonof Dangerous GOO<fs A~t~nd lts 8$$Q(iate<j regulaticns and British Ct>lumb1a's·£nYito1mlMfa!Manttg$mt.mlA!land ~ss¢eia{~r~u1aliqn$<

7~.$ R~rsponstl;1ftty f()r Lt4t:rrrartsportaHon Emtrnaney Rasponse ~ ThtJCl}$i~t ac!<flo'vt1$dgas lhatForosBG Enerf)y wm incvroo:Sts to ~mplywifu app!~bte Jawsre1attng to emergency response duting the tr<lnspgrtaVt:m of ihelNG Oispettsed w tho ~\!stomer vndet Uds Rala $chad1.1hlWheth~t nr W)t lh{l Cvstcmer h~~ n9t $~ilX;ted ~~ LNG 'fran$pof{atio(l $aNi®~ . FcuUsBC En{tiGY r~s~rves !ha fight to e)1argo U}fJ CuslOl'nerfm co:st$rorttsBC Energy 1aeur$.to ®mpty\'lithsuro iaws~

intM ~velitfqffisSC Emjr~y H'Jsp¢n~$ to a trMs{X)rtatJ<;n f;tmecgenty trwoMng lNG Dispensed to lhe Customer underlhl$ R~ta. Scnedu!et lha>CvstQmercShall ~lit~ q;.;pcnse provide assistance to Fcms8C Enetgyop<~n r4q11est.; Th~ Cus:l<>mer $haH re!mburs() F<n1Isac EnerGY for all wst$ tncutr(ld by f{lrtisBG trnemy r~s~>QndfngJo su¢h an om~rtl~ncy;

lA Rqqulr~d tnsuntrtC(t- Th~ Ctist~mcrmust maintain Gen~ral C<:~n1merclal lf()l)l!ity fnsun'incofor PodilylnJul'/l death and property damaGe in Ut$0\ln!mumamount 9f $5,0(}0~000 per OCWffEt!!CenamingfortisSC Energyas an atkfition~! !nsut~d \viUt rcsp~t to LNG s~rv!ce or LNG TransportationS~rvico provhferlto th~ Customer~

a 1erms ofPaymnnt

6.1 L~G Sarvtc~ ¢tiarg~s,.., TM Customer Vil!l Pily to FortisBC Energy th$ foUov.ing charges for LNG Sewl~ as provtdedJn.ffie Tab!~ ofChar{}Q:$;

(I) fortpn{J·TermLNG Sero<:e end $nQn~Tarm t.NG SeJV!c~, the Cuslomqr vAll pay w forUsBC Energy aU of lha fq!lowiog (;twrges:

{A) Achalgo ca!oJ!ated as the \}teater of

f. 1h$ Oe!iveey Charge, mulliplled by the <JUflOfity oH.NG. meas1,1r~d in Giga;oules; Olspens~ to Uw custmn()r,

or

li. the Minimum Monthly Chtugo; plvs

{8} AC¢mrnodi\Y Charge calculatau by ntuftiprfing

;, lhe quantlty ~f lNG~~measurt'ltHn G!gajm.l!es;. Pispansed to Ilia Cust9mor _ . plus Ptoe$SS Fuel Gas

by

ii, til~ sum of $Ui'l13s Monthly lnd()x Prl~ plus tfet!\{)t factor

and by

m. . tho ~re~ntago of LNG suppU?u ftom ~nvenl!on~i n9tvral gas as .Selected by Uw CusJonw; p!t.Is

(C) whoto a Customer has selact~d a per¢enta!}a ¢fSklm$thane as par\ QHM Gas to b<J used ln pr\fviding LNG $erA~. a Hiotn~Jthaq$ Energy ReC9very Ch~r.ge ~fcul~terl by mul~pfy!ntJ

J, !h9: qti$il~tY ¢fLN~, mt1astlred in GigaJooles, Dispensed l.o toe Customer

by

i!, the selected peteentago of !3it>n)etMno

and by

lit theBEHC~

(11) AL(N1g~Temll~G SsNice orSMrt.:'f crm LNG SetV!eo Customer whoso Contrad DsmtmdJs greater than 1;B25;t100 G!gajooles may t;hoose .toptovlrle Us o·,yo natoral gas oommooity ~11d Process Fuel Gas .l<l the tnt~rtQnnectkin Point, lfl.$UGO <:asQ;s, tho Cu$t®1or wi!J not be su\lject fQ a CommooityChilrgll.

(HQ Spol toad~Nt,3 Ch~tgo - r()r$pol l_NG Se!\li~, tho CustO!)lar will pay to FortisHC Erwrgy ~II of \h(J cn{ug~$fl'l ~~ti<>ll8.1Q}; ~xeeet U1at, ln lieu of !he ch~rge under$?<;ti\IO 3.1\i){A), the Customerwinpaya Sf)QtChar~a ca!cu!atedqy multiplying:

i. the qu~nl.lty of LNG! me~sured in {3jga}ouies. Dlspertsed to tha customer plo~ PrOOtl$$ Fuel Ggs

by

H. tht; LNG spot Chatgo~

8,2 tNG. Ttansportaliof! $Qf'/fc~ CbtH'(JCS .... The Customer\'i!! pay to fOiiisBC EMf9Y oolli of the Jolfowing cllargosfor LNG Transportation SeNlct,~ as provided In the 'fable :of Ch~rges:

(ij LNG TankerCharge-... a charge perD$y or partial O~y fer th~ use of .a Tatlk~r owoedi'lf pf()Vkt~d by forUsBC Epergy; ~nd

(ill tNG T~nkec H~uuoo C~ar{l*>- :a fn'lufing.feo.f?3se<J on lne costt<l FortisBC E'naf!)yto ooo!fgct with a thlrdcp?rty con!ractor to haul tln.lTtmker, plus iS%~

-----·-·-·~~-······~-- ·········------------------------... -

S.3 Cutr9ri$Y- Uo!e~:Otl)etwise ;lf1d1<ate4. ;;~ll rlol!ar ~!Mttnts or thoU$~ of lli~ symbol'$• in this Rate Scitedu!a,incfuding the Tab!& of Char$ as and lhe LNG Agreement and LNG Tr~nsP')rtation Ser:lccA9re~menb~hall bo deemed to refar to Canadian ®liar$.

8~~ Payin~ntof Amounts'- lho Customer will pay to fo1UsBC. E'n1,3r~y all of theapplicab!ri .. barges set out in fu~ Table ofCmHge$f.:Jr~NG Ser..>lceumd~ ifapp!icablu; Tabla of ChMses forlNG Ttansporta.tion SerA:ee.

9 DaUy Loading and ScheduHng

9,1 Requ&~t~d QtHmtityl'tnd t.oa<llng SchaduJo- AU~asl44 hours in advance or the Day of the (;ustol11er's deslre<Jtoadlng Uma, theCustom{jtor its asent v.i!l provide FortlsSC Ener~y by fax or emalsuch information as may be tequesled hyForosSG Ener~y; whidt wlHio¢hn1a:, bulls ooUlmited·to$ the Cus!om~r's·cequestedqoanUtyofLNG.for tile glven Day.

}),2 J\djustmoniof L9adln~ Schedu!o-- fwilsS(; Em:rgy may adjust:, !n¢(jnsu11aUon Wilh the Cqstqmer or Us agen~s. tho Customers f«ic!ing ~f:hadule \~h~n iothe reasonable detarmtn~Uon of FortlsBC Eoorgy $Ueltnilidifieatlon Is nacessar.t ln otd~Jtto: -

{a} min!mlzo tho C()sts to FiJrtlsBC Enet~Y of orspM$1119 tNG~

(b) acoorrt.medata·mu1t1pl* Customf3rs;·ot (oj if the t:;ustomet is•.~3kin~ tNQ: naneportationS$1Vieit• Mdtess·uwnt>n-availabnlty

of the Tanxeror tton~avai!at;!lity of thlrdpaitl~s for nauiing tho lank~r.

10 T~nn of LNG A(lreement

10.1 Rl)lHlWaf ... There is no rlg~tqf.renewalof a LN~ Agrc~JmMt •. A Cust()mar seeking LNG Servico beyond the CootradTarm must e11ter jnto.a new LNG Agreement

10.2 Early rorlntnatlon by f'orttsnc EH<:rgy.:.., The term of lhl.l LNG Agreement f,s subject to eMy torm!nali<ln by Forti$BC Energy Jn ~oo:m:!an~ witt¥ sectkHl 13 {Pef(ltJJl or Bilnl<ruptcy),

10,3 SurviVal of CMcniml$ .. Upon terJ1i!na!J9noftltelNG Agreament* \',1tallier pursuant to section 13 {Default or Bankfuptcy} of mislNG Rate Schedule Qt olh$n•Aso,

(a) an cla!tnSi cap sa& ofadlon or l)th?r ou~stan4lng abllgalions remaining or befog \JOMfllled.as at th~t dat~ or tero1ination. and

{q)' aU of tha proVislo(tsintMlN(3 Asr~emeota~dtlt!s R~te Sclte~ula ra!atiltg to Ule a~ligati,ms.Qf aM ()f U1~ •. P1lttiosto a(;cQu~t lo or indemnify the other and to pay to the other any mo»!tlS (}Wing as atthe d~to of termlnaUon fo connection \'li!h this. Rate Scheoufe.

ptlgc 17 of48

11 Statements and Payments

11.1 Stat$m~nts to bG Provided- FortlsBC EnergyvAif: Qf1 crabcuttho 15~Day QfoacJl Month. deliver to the Customer, a statement forth& preeedlng Month showing ell s<~rvice_s proVided to th& Customer orUs a~.ents and the amount due. M'/ eq()f$ tn any $tat~nlent will ba prt;>mpUy r~f)Otted t'! lha oth~rP{1t\Y ~$provided har~under, ~nd statqmi)nts wiifbl) final and bin~fng uolf!IS:S questlonad within .ono yoarafter the date of the statement

1t2 P~ymMt and Late PaymentOharge- PaymenHor l.h& f01!amount of.the staten1ent• Including all ta.xes Imposed by any federal~ pmvil'lclol, mt.mtclp,a!, teuitoriar. local ora*'y agem;y or po!iUca! $ulx1Ms!on thereon. v4U bQ made to fortisBC Energy a tits. om~~ in Suuey, British Columbia* oral svch other place inCanarla·m:;• f()fii~BC Energy win d~sisnala; on or befond.he 1Rbu$fness Oayaft~rtne 30tt.~l$ndar OaytoUov..ing the blll!1)9 ~~tt). .. If the Customar(sUs or neghlCl$ to ~l~ke any paynwnt reGvire(ft.mder th!a Rilt~ Scl1¢duj~, or any portlon tJ1ereof, to Forlisac Energy wflan (fu&. Fcdl.s80 EMr:gyv.11l lncfiJd& in lho n~xt b!lf to tho Customer a lr~t;l p9ymai'it cl'!~fgo sped!i«< in !he St~mdard Feeund ChatgesSdt.gdu1~J of lha General Terms and Cnodl!Ions,

H.3 Form of P~ymants-Ni payment{l r~.qu!t~d ~o.~~ ma4() unuer~t~t~roents aod I~V¢1®s raotlered pursuant to. thl~ Rat~JScheQ,vfey&!!. JJ\l.mf{dt> l;lywim tr~ns!etto, or f;tl~{}UO <Jf bal~~ eastliC($ th~tta dtaVJfl Qna Cariaciian ct'Jatt(jffX$ hanf( or !rust company, p.ayabfo lo !avlful mont)y of Canada at par il! lmm~diatelyavanabfo funds ln V$ncoover. British Co!Unlbia.

H.4 EXt)Olinatton ofRQqt>tds- Ea® ~fFOflisBG ~#WriJY ~~tho ~vstomer vilff ~~V& tho rif,Jhl to~xarnine at mq~qnabla·U!Tfa~ U'la books. records and ~harts qf;Ula o!h~r tt>fiie a>;tent M~S$3JYlO ven(y tho aCGUtacy o:fany ${l}t1)ment. Wf!jf), tomputaUon Of dem~md made pursuant to any ptovlstons of lhis Rato Scnauuta.

11.6 Se(:vrlty- fn or(fqr tQ s~uttl lh$ pr<:•PlPl~nd o.rdertyp~ymentof tho .ehawesto ~e pa!d b•J fue (Jusl?!ller.or its ass!~fl~csassped~ed in.~etion·~a.3(R<:mcdlcs·Cumufativa}¢f U1ls ~atoS$he~uto to Fort1sBC·.£:nQrgy under th1s ~~a ScllQdula •. forlisBC ~nergym~y requlto tho custoflteror t~~ &S$~nees to proVfdo. aruhlt ()l!.Umes ma:ntaln, ao ruevoC$bJo !att~rof «Qdit r~ ($V<X}ft)ff~$8\) tA~~y I~S!Jed by a !in~nclal1nsliWUon acceptable to FortisBC Ener(}y frnm amount equal{o the e~fimatedmaximum amoont payablebyth~ Customerumfcrl.h{s RataSt<heduftl fer a penPd of~O Days anq in a form $al!sfadory to FortisBO Enorgy.lf th~ Customer crit~ ass1gnaesjs aNa to pro'Jid~ ~ltomativo S~C\fnty aw;pt~bleto fortisB{) E;mM9Y1 FortisBQ ~nergymay in its sol~ dlscreUoo a~pt su(:h secorily in !lev of a 1enerof cte<}il.

12.1 th11JoJMaasurenH.mt -TM unit ofmeasu(cment <>f LNG for .atf p;.~rf)9s¢s h~reu~tdervAll be lPtogramscrpou!lQs. ·

12.2 Dc(otmhl(\Urm ofQuantity- Tn~ quantity cft.NG Dlspense<f pursuantto tijls Rate Schmiule shall ba measur~d at lh.e scalo at tho LNG Faeil!tles or an alternat(t scaf(l that Js approved and certified by Measurement Canada. The ranker t>f otbereyosenfc rec~ptacta into which th& tNG is Oi:Sj)(lnsetJ will l:lo \W:1ghed at the $.ca!e befwe and ~ftor Olspansil;g, Th~ m~asur~menlof the amount Qf lNQ Ol$pansod shall. bo based <>A the d!ffcrcneo, oxpre$Sed in k]!ograms or p()Otlds, (}flhssa twi) wc!{!hts •• fo lha ~vent th~llha cryogentcrecept~c!a c.anootbi) weighed by .the s~!n~ !hen the quantity of LNG Olspel)sed shall be measured through the ose of mass flow meters;

page 1Sof48

12.3 CIJnwmdon lo En~rgy UnU$- fo ~q;Qr~anco with the Elt;cttfclty siuJ Gas /(lsrwcf{cnMt <~fCarta,(!;;r~ v9fum9s of lNG Dispensed eaeh OaywiUbe oonverted to ~nargy units by muHip{y!t~g the staru:fardvclume by theH~atCont~rtt ofeadnmtt oflNG •. Vclume$ wiUbe speciue~ !n kifpgram~ or PQt~nds rounded to tho Jll)arestunit and cnorgy win bo $pecrued It\ Gig~jou!es rouneed to ¢nedeclmaJ plae~. fortlsBC EnerQy\~il! uselli!) fo!!ov6ng founula to conv1ut }(Uogrems or pt)l.lfld$ qf LNG to GJ of lNG:

Conv~rtlng Wolght oft.NG to GfuaJ<ltdas

GfO$SWefght after LNG Pispeos!ng (klltigrams Of j}<)UOOS}

mhl:Us (;ross Wel~ftt pfior to Dlspons!!lQ {l<lfottt~J'I'I~ or pounds}

equals Net Weftiht ofilio Oelivaied LNG {ki!()(Jrams or p<mnds}

Net Weight onhe Delivered UtG (kit~re!lj$ or pounds)

multiplied by lbo energydenslty <Jsde!¢rflilned by ForlisaQ Energy through analysis ofv~j}Qrl~ed.LfllG on a periodic basis. Forgmator certainty, unlov$ othertlisa d_$t~rm!ned.tvJ. fodlsBC EnersY~·IM mwr(lydm!sity shall ·btl O~Q~Stj58 9!9aJQuleJkif¢$t~m t~r OJJ24%l7 4 .. g!g~Jour~{P9Und ~quats \MiYf)r()Q LNG {Gigi.ljov1~)

13 Defattlt·Qr aankrup~¢Y

13.1 OecfauU by thtrCustotner;.• {(the Custon1sral anytime f~IJ$orneg!l:ltts

{a) to make ~ny payment d~'J t*> fortjs~t,:: Energy or tJ$d!JsignatafJ l.mdat this RtdG Sclle{ful& \'n!ijln SQ ~leodarDays after payment Is duo~ .or

{b) to oorreel any t;I~raujf of any oftlll) oth$tt(}rm$, et}v.enantsl ~(lmlitlons cr objfgaUr.m~ !mpo$ed uwn it .un4er Jill!;! R$te Sclteov!e, w1!1~o 30 calendar Days aftt)t ft-disBC Ener9Y giv~ to the CustomenmUce ofsuch detault~ or

{c) in tile e.ase of a <lefau!fth~tpennot \'Jlth du$ diligen~ b~ ():()(rect<~d vAtn!~ (l .. p(!ri¢d of30·0~y$.lh(l•CU$l9rylorfails l(IPt«eed prqmp~y aft~r .~e giving of su¢b·nottC$ to ~ue<;t \he ~am11 and ttw.,after to pn>$aeul~ tho t;OrreeUn~ ofsueh defa~lt with all due d!l!g~n¢e.

tht)h f(Jrti$BC Enet$)'ffiay in addition to any ether remedylhatil h~s. at~s option and without liability therefor:

(d} $UspMdfuftt1er tN~ S~f\li~t~ tt) t~f) C~st¢tMr~nur the ?efauR has been fo!iy rernsdietf; and n!f sut:;h &vsrcns!on or refu.sai will reflew: the Customer fram ;;~ny obH~ation ~,tntf~r this Rat~ Sclledufe.ct

{e) susp~nd fur!.her LNG Service to tho CustQmerahd tetf1}1natri tho CustomerstNG Agreement

13.2 Bankrupt¢!{ or lmlolvcncy of tne Cu$tomQr-1Hhe Customer bt)eomos b;Jnkroptcr insoJventon:ommits. Qf $Utters an i)Ctof ~?nkiuptcy 9r insolven~y ora receiv$rJS appt:tlnted pursm:mH()astatut~ orundora.dnht iflsttujl18flt or IhaCustomer se~k$ ptoteclktn from th9 <fam~~ds.oHts cred!~<H·s pursuart to f,fl'/ leglslation enacte~ forth at porpos!l (}f t<ll)ltlleru;es.prQCaedlngs OtVf~rUm Qti!!J.P/tfl[(l2~9l~ditom AirangplJl&ntAct of Canada, fctl{$SC gnargy wil! h{lYe tho right. at its sote dJscteUon, to terminat() tfl(l supply

pnge. 19 of4S

of lNG,IhetNG Agreenlant by giVing Mti~.e !ri wtitfng to the cuslqmer and thereupon fOOisBC Enatgymaycease furih~r supply oflNG to the Customer.

13.3 Obligations of Customer Upon Svsp9nsion ot Termination -ln Ul9. QVtmt of a $ttspenslon of LNG Se!Vice,1)( termtnaUQn of a LNG Agr{:lement~ any arnotmtlhen ¢utstanrlir.g forseJVke provided under this Rate Schedule wiH lmm$(fiete!y be du~ ~nrJ payilble by lhQ GvstQfl1er. Thll CQfib'acttiernand sh3ll notbe reduced durin~ the p~rlod of any su!'lp!}nS~Qf'l, .rn tho !)Vent of cadytcrmlnationof ~ LNG A9reomonl, tm.am®nt a qual to tho Mint mum Monthly Charge that would nav~ otherwiS$ b~f)fl pay{fblo fcrtM tem!31hder oH.h& ConliacHoerm vlilloo~mo !ntmerlialety due and payable by the custoin.er.

14.1 f.lotf<;l) ,._.MY ~otioo* requestf statement or .b111lhatts n;qvlred tt;d>o giv~n or th(ltmay l:)e {!Noll undcrth1sRato &hedvfe \'will be lnwrlifng .an~ \Viii be tX)n$idat~ as tuUy .delivered when malted, persona!lyd~lfler~ or sent by t~x to ths other ln a<®rdanca with !ha foHcwing: ·· ·

If t<.l J:ortt.~ac Erv:irql£

MAltiNG ADDRESS:

Blt.liNG AND PAYMENT~

CUSTQMERRElATJONS:

LEGA:t AND OTHER:

FORTfSBC ENERGY INC~

16705 fras~r Highway Smrii!Y~ a.c. V4NCE8 Altentlom !nfiusttiaJUilling Tefepho!le: 1-855·613·3773 fax: 1·8$&,224~272('1 Ernail lndushfatblllilliJ;'Q}fortlsoo.tom

Attestlion~ Bo~bte$S Oeve!QpmQnt

T~!epJwn~: {778)~11~3296 (604) $9g*7g49

Em91! i lNG@fortisbCx:om

Attention: OitectQt, tt1S?l and Go,,emance St1MCOS

Tet?phont;t! .{()04)44:H>5l2 f£Jx: ' {60.}}44~-6510

Jf tn the Customer, then as set ouUn lhe Customer's LNG Ssn.ifw Agreementand,Jf appllcabll), lNGTr~nspOrtalion SewtooAgr~ement

14,2 StJ~clflc N<:lth.:os .- Now.11hshJI1din!J seqlon 14~ 1{~otire) ~nd scctwn 6;3 {Notrce cf Curtailment), J10ilet)S\'liln r~spect to susptll'iS!on ¢f tNG Servl~ by FcttisBC Enerf)y for reas<,ms ~f Fore~ MaJeure will bf; suffictent if giVflll by fortlsBC Energy !na~<:Ofdance with se!itl(ln 1$;$ (Nolle~) of the G{lnerall'orms and Conditictls•

page20of48

15 Indemnity and.t.bniiaHon on Liability

15.1 t.fmltatton onUabillty ·.·fortfsBC Energy, its \lmproyeeslcontractors 'Or agents $to not raspons!bte or liable for MY kl.ss, dt~Mage, .CI)Sts or frtJtuY (ln~h.:rllng death) !ncu(red by Ute Ci,J~torneror;~ny patson C{$lmlng byw ihrooijh Uw customqr (.laU$ed by or resulting from. dfrect~;<>tlru;llr~Uy. anyd1scorttitll.l()II®, $Uspension or<:urtailmontofl Of failure or defect in. (Jt (t)fusal ~Q provide t.NG S!lrvk:a; U(:lll';s$llia Joss, (jam~ga, costs Qf fo}!JI'f ~ntlriding daalh}isd!rccUy aUtlbutablo to lbo sross negffgence t:lr,i'lllfM misconduct of fQrtisBC Enorgytlt$ empf~>ysas, e¢nttaetors (if agent~ pr~vided~ however thatf9rtfs8C Energy. its emptoyees. wnkac!ors and agont.s are oot responsible or llahla for any toss of profit, k>ss oflaVMtt&t>, ot olhortlwMmi¢ kiss ovcniflhe foss is dltectJyaltritiutablo to th~ gro$s tl«gligeJ!eo or willftJl mis~on(}uetoffmlk;BC Energy. Us emplOyees, C{)rttfactots or agents;

15.2 CustotT!oi lndonmlly ~Jha Customer:wllf lndam!lify and hofdhamlless F01UsBG Energy, its employees, <:cn1rac!ors·and aoe!lts·fmm alldalms; .fOssas~ $Ulls. a~flons;fUd$ments, demandS:, debts,aeoountsidamag!ls,.oosts, penaJI!e& and oxpenses {including all fegal fees and dis~ursements) arisif!g from or Qui of

the negligence otvr.11M.nllseMdu<:I.of·Uia Custcmtlf •. cmp!oyeos,• contractors or agents; or

UJ.e tm:ach by the Customer ofany ofthe provis1ons eontalned ill this Rato Sch~~u!e, includir.g lli~l.N~ J\gte£H»ent .~11d !f ~ppf!¢abfa lh~lNG TtnnspQit~UO!l S~rvf~ J\9ree~t~ot, fncfudl~ ~wse retated to tile p~yment by !.he (;us~~lltl3rof aU f~deraf, ptovinela1~ ~nd mun!clpaltaxes {orp~yme11ts madam lieu therool)~

16 forc\1 Majoure

1~M F'tn:~,t~ MaJ~w·c.., SVhJetHo Uw o!her provisions ottl'llssection 16,lfoi!horparty ls unabl$ or fail~· I>Y rE!a~on of Fer~~ Majeure to pertcnn fo whole or If' pattany o)?!Jg~!!on or 9)VBO$tll $6t ctllin.·titt~.RateSchedu!e,the oul!gaUom,; ofl.Hlth Fo1tis8C En"'rgyamlth&Cvs!onwr vtill b.:t ~us~nrled fo thae:<tentnecessazy f~r lho peri!fd ofiho ForcnMaJay;e t()ndltioo,

16.2 cottailn\!Jnt Motic9 ~If FortisBC E!l.Stgy cla1ms suspension putsuant to !.his se.etion 16, ForlisUC En~rgywi!l b~ ue~merlJQ Mv6 i$Stied to tho Ct;sh:unera notice of curtailment

16.3 E~cl)pHons * NeilheCp~rty 1•/l!! bt) en"lled to the benefit (}ftbe provislons of seciion 16J utiderany of the followlnj;f clrwmsli~n<:os:

{a)

{b)

{c)

to the extent thal the failure was caused by thfl na9fi!fenco or contributory negligan~·onn~ partyd~imiog.svsp~ll$!on.

subject to section 16.5 (NI.l Ex~pti¢n for Payments) to thaextenllhal tho fallut~ '>'~as ~osed by the psny ct~1mlng suspension haVing !a!ferlto uingenUy auen)pt to temcdy the t¢ndltion . .:~n<,J to i~&i.;rtlt) the performam:;& of lha cov~nants or o~lig~tions \'lilh rq~~cmal:de ~ispatch. or ,

unless ass ssibte afhlr the fi<'lppenlng onhe «curr~nce retied on or as m!ningthatth& occwrenre \vas irdhe nt:~tl)ro ofForo)

MaJtiUre ttOdwout<J aff~cllh& tj~ln1ing patty~$. ability to <ibSf;JV& cr perform ~ny Qf its C(tVt'lnaolsor obl1gal1<ln$l)nder t~is R~la Sclledole, Jh$ party cla!i11!ttg suspension will ~HlVQ ~iv~ry to.lho other party noUcc lo tho fl{foct that tho party Is tmabla by reason of For~ Majoor& (the nature of WhiCh will ~ spaeifiMJ to perform llw pQrtk:ulatcOV()!HlQ{SOtQb!igatlons.

16.4 NoUc& to l(&stlffi&-The party claiming susp~nsi{)n \-4!1 Jil\llwise ~ivo notice, $S $00rt as possible after Ute Force MnJeure condition has te{l$ed, to tho effect {hat 1t hcs tt':S$ed and that \h(} party has resum*ldj or is 1htm 1o a pasi!.ico to H~sums, the paiformsrn;o of !he :oovenants or obli~alions.

HUi SeHfcnlont of labour Disputes~· Not\vilhs:tandlng 6ny <1f tho provis!t~j'jsoflhlS ~eetiol'l 16, tha timincg and letms and oond!lions of tho settlement of slriksst labow d!spultts or lndustrlaldlsrurbanres 'iii!! be entkefy within .the dis~re!Ion of the padlrolarparty lnvc!ved and tho party IH!lYillake :se!Uenwnt of U aUhe time anf,i on tenns and. oondit!ons as.it may

·deem to t>e adYfssbfe Bild oo<telayln ooakir.g setl!ement will depnve the party Qftho benefit ofsecilon 16J.

16,6 No ExempOon ftJt Payments- N<ltwilhllh>~dintt ~~w of ill~ proWslr>ns of this sectitm 16~ Foroo MaJeure wiilootren~ve orr~!ea$ee!UierpartttJr~m its ®l!9aUons tom.~ke payments to the othar party UJ)deral.NG Agreem()tttortfi@TranqfW)rlQUQn ~QMCo AgreomQnt fn tt\~ ~v~ntofuoy Ftute Msjaur.;t ov~nt ?ff~~nn fot'tfsSC f;nargy !hat rf1sUltJ? in a Wrl<lilmenttne;<ee$s cf12Jloms J)&r Month. then the Mlt11m~mMoollity Charge as specified !ttsae~on a~t{tNG SeNIC$Ch~tges)of this Bate S~edufe v~il! ba prott.ll!!<l accor<IJngJy. · $ho~fd f){) $\'~nt of FO!cOO htajeum affecting the Customer prevent tho customer rronl taklrig LNG St3Mco/llio Mlnlmllm Monthly Chatgowi!! not ba reduced,

16.7 PotiQdfe Rtpalr by fortisB~ En$rgy- f<niisllQ ~~ergy may ti!mpomrliy ~u~pend Ois~sfng t:>f t.~q fr<~m thatNOFa(ltJitl~s for the fUJtpos~ ot repafrlng or r~pladnp a pPriion (If thafvf;tisBG E~Qtgy Sy~t~ill(]t 1tsaquip9lartl $Od ·forl!sac Er.$r!JY will mak~.t ra~son~blo effodsto giv$•thn cvsmmer.a?mue~.notlco·.~$.pt>s~!bl~\'li.Ult~$pe¢t tC~ sUGh suspension~ f){)t lo ~less tfu.m 24 hci.Irs Pli{}f notice ext:eptwhon ~n~ventoo byfcnm Majeure. foffisB(; Energy will maxa reasonable efforts to schedule repa1rsqr tepfaeemenUo minimize suspensionorcurtaitmantortNG Service to !he Customer. and to fG$lWe SeNt~ as· qul¢kfy a$ po.,.~i91a.

17 Plsr>utas

17. i Modiatlon-wnoro ~ny dlsputo atises ool oforJo ronne<;~!Ul \'lith 1M :LNG Servf¢t:h f<;rttssc En~;gy and thtt Custot'l1\lf;!19tGa t<> il)'.tor&$ot'lelho<Usputo by patilcipaii.ng ln a stru::;tur~d m®l~l#on confotf,moo V!ith a nwpiatot Uf1derllie NaUon~f Arb!tta1f9n Rules Qf tl}o A?R fns!ilt~te of Canada, lno •• The madlaUQn vlill take pfael} in VacCQ~Yi3rd!C;

·11.2 Ar!JUtathm- ff fclltisBC f:na{9Y. soo lh(J Customt,~rf$il to ttfSclve the.dlsputo Ihrough madial!cn wilhloSU days of a party giVing •.vfittan no!lca <Jfadfsputet then either party may refer llio dispute to bimliOQ atbi!ra11on for final rcso!Ultcn. The plac~ ofarpit(ation will be Vancouver, BC. and .the su4stantiv~J f"\'ISQV!l(fllrtg tft() rlisputo will ba.th.t11&w qtadtish Cofuml)ia •. Un!~:Jss oliJcrtAse agr~oo by tho partie$ ill vtriUrl~J;the arbltmtlon Will ~P (O(IdiJ<:te<J tw a.stngfear!;)ltfatorJn ac(ordan~(* with the NaUon~! Atbil(atl!U) Rol~;s of lho AOR fnslituto qf Can~da, In~ ••

17.3 A\vard- Tho arbitrator shell have tile auth<lrity to award:

{a) money damages, to thf.l ~tent provl9ed in Uta R?te Schedule;

{b) interest ¢rtuf'lpa!d amounts from tile data duo;

{~) sp~c!fic p$rforiuanco; and

(<H permanent reiief.

page22of48

11A Obtf!jattons Cotltlnue -Th& partie$ vAll wntim.to .to fv!fill lhairrespetUvo ®!lgatlons putsuanHo this Ra1a S<:J\edufe, the l.NG Agreement, and, ifa~icab!$; the ~fiG Transportstion SeNiee Agte~m~nt dtuing tha rasofu1roo of ~ny di$pUt$ in ae«~tdartct; \'lith this S(ltl.ion 17 ..

18 lntetpre~atlon

16.1 Interpretation~ ExeeptyJhere fug context raqukes oUtei}*4Se prexcl}pt3S o!h~l\vtStl t;xpressfy providf.ld.ln this Hate Schedul~. indudlng1he lNG Agreement and UlG rransPQrtatii)n s~me$ Asr~em~nt.

{a)

(b}

{c}

{d}

(e)

all i'ef~ro~s to a doslgnated section am to th~ !lt!sfgn~ted $f;!Ctfoo of this Rato Schad of~ unh~ss olhl:!lWise spec{flca!ly slate-d;

lhe singularof ally lcrmJm.!udes lli& ptural, and Vice versa, and til& use <>f a~y term is equaify app!ia~b~ to any gendurand. wham appl!e-$tilo.l;J.o4y etJtporat~; any rt)feren.:e to a corperate MUty111clucr~s and ts atso a refer~nce to any tO:rP<Jrttt(t entlly.lhat !sa sucte$sOt by.metger. amats~matl<ln> eons4!itf?llonct. otherwise to such entity; · all!'fQtlis;phras~~andexpressions used fn lhlsRato $eMdtde that have a com moo usageJn>the 1$a& fnuustryand thatato not d~fined in thiS Ratl'J Schedvla orin tho G~nerill TOmRl tlOd Con(iitton:s have the meaningnommonly ascribed !hereto in the .gas i11t1us!Jy; and

!fie hea4tngs of the secUons setom th tills Rate SChedule a(eJ!)( oonveni~nce of reference <mly ~nd Will not w mnstd$ted in anylnterpretatklo of this Rate S~hed\!f(!.

1~ MlsceUaneous

19.1 Nf.>Jofnt :vetltur.e or partnet$ldp ~Nothing <:.Qfd~Jne<i lnlhis ~att1 Sc1te:{Ma, fngudlriglh9 LNG Agreement and the lNGTransportal!onse~l~ Agreement shall be CQnslrued to place lhQ patill;ls lo the role oJ partfl~f$ orjolnt yenl!,!HlJS ora~!).nl~ afl? no Pi:Hty shall. ~ave the power tooblfgpte ~rb!nd rmy Qth~r p(;dy fnanymannerwhatsoaver.

19.2 Watvch N() waiver by eitherfort!sBC EtmUlY <:ltthe.Customer ofany.dofault by llle o!her ffHI\& peiiounance of any oHhe provistons o(thls l'ate Schep!Jte will operate orbo C()flslrued ~rs a 'Naiver of any QlherQrfutoro rlef?tlltor rlef~plls. WhE1ther of a lik<J or different .character.

1tt3 R~m~tU!:~ (:Umulatiyo ~· A{l fiSht$ ~ndiem(ldiesof: ?achpatty und$tt~ts Rat& Schedule :ar9 curmda!ive apd may be ox~tdsed at any tlrn& and from time to tirM, fndep~tnfontty and in eombinauon. ·

1S.4 Enuromont ~·rhJs Rat<1 S<:hedulc, fncktdlng1he tNG Agrcttlfllont and,lfappli93blq, t~e LNG Tr:ansp()rlatlon ~eNl<;o f\greement. vAll enuroto th~ benefit of and be ~ifu!Ing UJIDn the partjes and Ull3fr rcspecttva spe<;essois and perf!liU!$d as$!gns, fn~ludfng wilhout !Imilatlon .• successors by merger, amalgamation or oon$o!idatiqn.

HMi Ass!gnnHmt ~ ThaCustomet mayMt (tsslgo Hs righ~s l!rtdarthls R<lfe S~heclule, Jn~h.J<Hng th~LNO Agt~ementant,f, if applicablc~Jha ~NG Jrp»S,PQJ:{aU<.:m SefVico AQm~m~ot, in whole or in p~rtstit!tqUllh~ .rJJor \'lri!l?~~nsentqf FortlsBCEnprsy. provided, h{)w~vcr, that Customer may assign viitnoullh.e consent of Fortis.f3CEnefgy if;

page 23 of-48

{a} $uth asstgmnent Is n1ade p~usu~nt t~ the assignment f.'Jf ?U oftl1e Gu,stomer'$ tif}h!s . and pbligatlcms her~undei to ap~rtn~tship, Jfml!ed liability oompa&y. cot~<ll!Oo; ttvst or otl'u~r organfzi'!J1onlo wnatGv~r focm succeeds to alter sut>stantfa!!y all of tho Customer's assets andbu$fness:

{b) full ~ssignef.l ~sswnes su~h obUgalions by contract, t,)peraUoo ofla\•t1 ot othcn'iisu; and

(c) a! least five {!j} day~ prior to tf1e ~$l~H1~e takiriu sery~ca i.fllderthl:s Ra.l~ Schedule, tho Custorner prctM!Js ft4;illoo irnvritklQ lof9rtlsBC EnetQY(.lf the asstgnment of its ;igh!s and Ql)!igationsas Customer 1.111d~r this ftate Sehedoiaj and the asstgnce provides oontirmatton In vtrlling to f'otUsac Em~ItJY of Its as$umption of rlghti3 and obtlgatioos as Custcmer under this Rato schedule.

Upon such assumption of obfig(!Uons, ~nd If r~quif9di the c~~pt <>ftht) pti\lt\•{l)tton consQnt ofForU$BC EMf9Y• whi?h COf1Sfintsna!i not be unreasonably dnlayod 9f Withheld* .lhf1 <Juslcun~t $haUP6 telklvcd ?f~nd Mly disthsrgad from all obligaticns her~vnder. This provlsionappli~s to &very proposed assignment by !he: CustomaJ\,

19.6 taw-Tnls Rata ~!Zheduf{)Vnl! be .e?nstrveq and interpret~~ 1ft ae~r~t'lrtPQ \vitO U)& eppi\~blo l$WS c{Jhe f'tQYiO¢$ ofS.rttfsh CoiurnbJa~andlhoiaws ot csnada,

19;7 Tlm&Js :<>fEssen~e.-. TimeJs offha essenoo oHhls Rate Sdn~du!e and of the .h~ui1s and t;COdiUM$lliOf1JOf,

19.a SubjecHo taghdatton,.. Notwithstanding any{lttterprovlsioll h~r~.of. thls Rate S~e~JJf& and U!&rlghls al)d oti!lgatlof1$ offortlsBC EMr{ly $rtd the Cl!~!om~r v~der !his Rate Sen&julo ara $liblf;let to. a!~ pr~sentanuJuturol<Wi'S. w!~s.re9ufations atld orders f.ihHly leg!s!~Uv~ bod}\~ovetnmentatagam:y tJ( duty constituted aulliodtynowor her~after I1aW119JurlsdfGUon over FortisSC Energy m uw customer.

19.9 Ftrrlh~rA~sur~ncns- Eath9fforti$8C E11ergy and !ha cvstofnet\'nll, on demam:ihy tha Q.lhar~ oxecutaan<f <le!r;er or causa to. bo ~x~cu.t~~ ~nd defi\'(lft:~d ~n such further ~()W~l(JflfSSJ1d1nstrumentS?fld dO aU SU~hfvrtijeracfsand tf1ifiQS3Sth8 OU\Ormay teasonabJyn~qulfeto evidence~ et$ff'/ out and glve ful!effectto {helerms, conditions.: kdontand meaning of this Rate Stbedu}e, includ!ng theLN()A!)rt:u:uuent and. if . . ... appllcabro, th$ tNGTransPOflation SalVi~ Agreement, and ~o nssme thG oomplotion of Uta ttansacUQ!l$ oontempJatad newby,

page24of48

r Table ofCharges for LNG Transportation S~rvice

AU safes and seJVice taxes, ccarboplax and any future nsw taxes, are ~xtra artd sna!Hw appil~ as ~pp!icabfl.l. ·

~~1~ LNG T~nkor Charge per Day orParttal Day

lNG nmkiJr Charge p~rD~y or P~rlial Day tor 2~14 and subscquont years

20l3lNG Tank~r CtHlrgt), &SC(liated annually anne ~roater of 2% ortlle ~fitlsh (iq!umb}a · Consvmor Pri<:o lr.<iex.

F~saq Energy oostpftisj-5% Adminj$t/alitm Cttarge

pagc25of48

TabhrofCharges for t.NG Servlt~

All $ates :an9 $efVi~ taxesj ~ioon tax anrl anyJut9ro new taxes. ate extm and shall b$1..\pplind m~ ap~l!eabla.

Cbatge per Gtua]Qtll~ <Jf atomeUtan~ l)Upplled (ifapplfcabl<t}

LNG Pa(:iJUy Cnargesi r;l$oldclty Su~cflargesi prel)litH)lS; and ~ti~ $pot CbargosJcr2lH4 antJ th:oroaner

Notes:

$ 3.47/GJ

Sumas Mtlnthlylndcx Prlco1 plus llio MtuketFattor

1. $u~a$MAriihfY Index prtea .... ri)eyans !M Sumas M9nt~fy 1nqex Price ~s sotQtitinlf1sfdil F~f:.R.C.¥:s Gas.t,i?rketR~pQQ for gas d~livetedlo N9IlilW&$l Pipelint:~Ctrpf)t~Uon at sumGsJ converl~d to Csna(i!all dcliars ustt1!fllia poon exchange rate as quottd by tha Ban~Qf C~neda forthefirstOay of~ach Month !nwhiehtho Sunn\sMonU1Jy.fn\I$X Pri~ snail apply. Ener9yun!!s are ~nverl~d rromMMBtutf? ()ioaJoule by t1PP!f~lion ofa cxmvccs!<m fa{;tor eqvat tQ 1,055056 Glgatoura porMMBtu.

~. Ma.rket F<t¢l~r- n1e8n$ tit~ t!l~rge tf!atts ihl)prem!um ~boY?lho Su(rta~ Mori.!hly lnqex th~tJs eiit<:ulated by f()fijs~C ~nergy for that, Month to C()yer ~sts refalQ{i .to $eeuring lJ'I<:(C!ncntal natvr~l ~as supply for thai Mqnlll~ lnc~vdlng market premfoms loviad by supplitns f{)( ~nsuring physical <fellvery of nawr~tgas and <loy demand cnargasrela!ed to ln<:remental. physlcalptm::hases and contrihullon to the reservation feoa and v~rlable tX~~ts of PQreassetswhi¢hmayba useq dVring that M<mth, Forgtt;ilterefarity, Ulfs premium\~~~ he b~~<i pn at;Ioal marka~ quotations al Sumas r~rverl by Forfis:BG f.nl)rgy.

3. tN9 ~<tctlltyChat~ns, EI!H~trtclty surch~rgos.ptomlunts ~rid LNG SpotChargesfor 2014 and beyond~ Tho LNG Fadflty ChatQas1 El~ctticltt Surtharges, premiums and tNG Spot Ch?rgesJor 21H4 aM tMreafW wi!lba determined by laking the. bas$ cll~cgt;s shovm Jn.(1l bolow,wn!eh are &xpressedfll201$ ·dollars, and·tes~tting ~oo $(jjV$ling !hr>sa ba~t;l warg$$ ~nm.ta!lyonJanuacy1.fn. aeoor(fan~ \'lith {2} below,

{i} The (ollowin~ baso chat$iJS, ~xpre$Sedf1)2013 {Iollar$, ~nail a?ply lri accQrdanca vlilh the spat!ffed ag~mgato daily Contte:~ct Osmand for ail CustootJJts and the spedfied Available tNG Capacity:

page 26 of48

{~) Wbere on ;January 1 (!fa g!ve,n ye11r e.tch <>fllieaggtegatd prorated dally (;®fract Demand for ~If Customers antHhe /wa\lab!elNG Cap<leltyis between. o. Gigajoules p~t day amt35~000 Gigajoufas par day~ !h~ folfOvJng base charges app!y for tha~ year;

t..NG FacUlty Cbargo $ 3;47/GJ

EleclrlcltySurcharge $ 0.138JUJ

UH.lSpot Chargo $ 4J)QfGJ

(b)'Nhere on Januaty 1 ofa!}Mm year ~ach of the aggteg~t~ prprate:d daily C<>Wact ()am~md for all Cvstornars and the Ava!lab!alNGCapaclty Is atJ~ast :;~.(JOQ Gigajoufas per day and less titan 1<!Q,QQQ GtgaJoutes per <fay" the following baso ch~rgas apply !or that year:

UlGF~<:ility Chargtl

Efactrlelly Surcharge

LNG SpotClHlf1,1Q

$ 2.68/GJ

$ 0.&1/Q.J

$ 4.20JGJ

{~} W'r:uwa 011 ~?I}Uary l?f n QivenyaarDa~h Of thoag~(:egata prorat~ddaily OJnliact P~mand for a!! Cusl~ftli,HS at1d the .Avanab!&LNG Capadf>J Is at h~ast 100,000 Gigajcutas pet d~)\ tn~ foiiowing bas$ t!ijnrges applyf~r that year;

LNG Facnuy Chat9P

meeh'icity $urehar90

LNG $tl()H.::h(lrg&

$ 1.84fGJ

s n.as/GJ

$ 3.35JGJ

{2} T1t6 base ~ar~q~ &hownin (1} ahove,wh!Ch an~ ptesented ln 20·13 dQllars; wiif be<resal and adjusteqannual(y as follows:

{a}ThelNG facllity Charg&Jll1d ~lipremi!J(Il charges rn (d) bt1lOW f?paiJ.b~esca!atod amwaliy at the greaferof2.% <>r the British Columbia Consumer Prl~ lmfex,

{b} The Elet{dcity SuTehi:lr~e shall be ?<ljustad based UJ)<)n fuo actual pr1Qr yearete~lritlty uS,o per GigajOula (}ftNG ou!putof lhe LNG Facilifias and actual BC Hydro ra{llincreases Incurred at !.he .LNG fadlilfes. -

(c} The LN<3 Spot Charge is $tL25/GJ gr~atetlhan Ute svol ofllia LNG Facility Charge and adjusted E!eetrit;ily Surd1argo1 asa(iju!;t® l!ndr;r(a)an(}.(b)tlbQVe.

(d} Whero eacbnf tha ttf}{ltegat¢ pmrat~d dallyContractDanwndfor a!ICIJstomers and the Available LNG Capacity Is at laast35,0Q{! Gig?joules pet day;

t Custetnets with ? da!ly pr9r~!ed Contf~Ct OIJ,ni~rtti of I~$$ thai\ 5.000 OJ/dny shall pay a pren1ium of $0:15fGJ;

ii, Customers \~lh ~ CoolractT&rfli of!oss than10 yt;ars shall pay~ prerntvm of$0;25{GJ: and

Ill, Customers with a dally pror8led Contrael Ocmand <>fl~S$ ttum 5,000 GJ/dayand a Contract Term of t~ss Rum Wyaars shall pay a preri1hJm (If $tMQI()J,

page27 of48

!.lQUEfiED N.A TURAL.PAS SALES AND DISPENSING SERVICE AGREEMENT

dated·-----·; 20 ___ (Effactiva Data) between fortisBC EMrgy 1nc. (f{)riisBC Energy)

and ~...... ·".. · (Customer}.

WHEREAS:

tl lhe Cu~tomer has roqunst~d thatF{)rtisap Ef1Qtgy pt{J'if<fp sef\!icas forliq.uofacuon of naluta.IGas ~u:d Ol$f.W0~1l9 oftNG (mm llia LNG facllltles •

. NOW !~F.~EfQR~JrUS Ut~ A<JREEMENT V/llNSS$E~TB;l\T til w})$ideratron of tim !arms, t;ondi!ioos and limlta.Uons oontatned nefeln~ the parties agto~ as foUows:

TypeQ(SGrvico:

OispcnsJng P¢fnt Pr~feued by C~stQnwr:

ExpicyOato:

Sert.ooArldress:

46

.--___:.._.Gig!ljo.olcsporYa<lr

0 Qa\lv 0 Monthly

2. lncorporatron of Rate Schodulo

2.1 Acf~!HonaiTem"Js- AU ratcs,tem~s and ronditionsand d~finl!kms .set outfnthe LNG S?l~$, Dlsp~n$lng and Tmnspcntation Se~ Rate $ched~!fe~s t:~ny of them may be amended !o acro;dance with seclit1f12.2 {Amendment of Rate Scfledufe} oUhJ~ Rate Se:nouula a{ldffl fua General T~nns ~nd Ctindi!Imts of Forussc F.n~cgy as :.m.y oHhom may be amended by F<irtlsBC Energy and <lpprovoo by th11 Btlllsh Columbia Ufifilles Commfssloo. are Jn:addition to th&t$rms and conditions oorttained inthls lN~Agtea~1ent :and form pqrt <>Hhfs LNG Agreement ttnd .bind Fcru:!BC Energy and Ule Cvston~r as if sstoot fn this LNG Agr(.lement

2,2 Conflict..;; Where ~nylhlng iolliis LNG Agreement 4oufiltts Wilh either the other teimsln Hal~ Sihooure of the Gerierar T ~rms and Cllndi!I<~ns ofF<~rUsac EnotQYJ fuo pr~vi$~¢n& <~f lliislNG Agreementgow3m. Where anyth!ngin the Rate St:;hedu!e tQl10iC{$ wr1h any Qf tM rates, h1m1s ~nd oonditloos setm.it In the Genets! rerms and Conditicns offorUsBC Energy, lli& rm:wisf<Hl$ i>f the R~te SchMole govern.

3i1 Antendmants to bn ht Wdtlng··Exceptas olhef\Yi$e set om in !he R$teScltedutl't, oo amendmentotvarlati<>n of thislNG A!ltaement v.1ll b~ effective or bfn<Jing upon til~ parti~s unl$ss sut.h emendment ¢r vatiati~n is setout in writing tHld duly exe~uted by the ptutles.

3.2 NoU~e .~Any Mlico$ qr oUlel GOmmvn!~tl(»l wh!ch may b(} ¢r fs requifco to t>e glvenor n1ada pursuant to Ute Agreement shuU, tmit1S$ otharYtisu oxpw$-sly provided hetein,shaH lre lnJ•mUng and shall be persont!t!Yd~liw3red to or~ent by faC$imile to ~;~Jiherparty atiis addr~ss seHorth :b$!ow;

If to Fortis Be Enemy

MAiUNGAOom:ss:

If to the COM<lm$r

MA!UNG ADDRESS:

FORTiSBC ENERGY INC,

t~7Q5FraserHighway SUUCtY~ B.C. V4NOE8

3~3 s~vbrabili{y ~Jhmy provision of thislNG Agreement)$ datem,1nad by a oourt of C~Jmpete:nljurl~dictionlo bo!Ma11d, i!fegaf or ~munfot~~}JlQin tu1yresp4ct, su~h detatnlin~~iqndoe~ fl{}! impa!r or affect lh$ validity,legalfty orenforr:ealtlity of~nyolher provis!on of !his lNGAgteenwnt

3.4 Exef;utton .... JhtslNG Agreement may be executed in ccounterparlsj oath <lf v.t~ic.h Ghall be·•daeme<J as an original. but al!ofwhich·$halleonsulut~ On$ andti'le.s.ameinstn.lme.nt. Oalivel}' ofaru>xeeut&d ~-IJnterpart of !.hi~ fatter byfa~1mlle ~;:~r e!ettron1c b'a!l$mlsskm hereof sha1J be as effecUvo as delivery of :an orlglnany exectJt$'J <:Otmtetp$rt hetoof.

IN. W~TNESS WHEREOF the parties hereto have executed this lNG Agre~mant

DA1E: DATE: __________________ ~

LNG TRANSPORTATION SERVICE AGREEMENT

THIS AGREEMErn ttNG TranswrtatiQn Se!VlcoAgrce!lteotoi f\9to~ment}1s ~nado offnrittvo as

cfthe ~-of-~- , 20~ {the Effective Oate)oohvetm fQrti$BC Energy 1no.

(ForUsOC Energy) and_~---~-------:-~----~ho Custpmer}.

NOW THEREFORE, in a~nsid~rat1ofl offue>mutual promlsos S(lf¢Ut h~telrt ;Jrt(iot}1er SlXKf and vaiuab:lQ oonsldaraUon (the re~!pt and svftictMcy of whkh is hereby acmowt~dged} !he parUS}s agree 3$ fcl!ows:

1. lncorporatlon by Rate Sthoch,do

1J Addutona!i~rm.~ '""'.A!! rate$> tarmsJltld COilditlpnsand, ~eila!tlons setoul tnthe LNG $t'ias •. O!spensin9 ?nd TransportaU¢n S~JViw R~teS\ih&~vte(Rata S()hadcl~ 4$}as •~mY oftnem may b~ am~11d9<1 !o a«ord~rt¢$ witb ~edion 2.2 {Amendmrmt of Rat$ Schedule) of tl1ls·Ra!f)Sciledut~.1m~ Jn ~he Ge"er8l1~rms:andCoooitions of fcrti~BQ J;ncrgy ~s aoy 9f Uwmn1ay be amended l)y fortfsSO Enurgy ~nd app~~ved by fua Bntl~'>~.Polumbia tltili!lesComn11sslon. am fna49tllon to the terms and <:Mdition~ cont<lfnedjn this Agreement and fqrm part oHhfsAsreem$ntand·blod fmtlstm Energy an<l Ul\l CU$tom?r as lfset.out in thls Agre~mJ;lnt.

t2 Colt~ltt- Wham ~nything ki this Agteenlentccnflicts wi!ll either tM ¢U1er!arms in Ral!) Sciledule 4G ortft~ General r erms ~no Conditions of fotilsDC EAergy, the proYhiions pf Uds Agreement f;ovem. WMre anything Ill N~teSclledule 46 «Jnni.~;ts with any of the tat()s, terms and -conditions :S#t <>Ul tn tho Gtlf'll)ral Terms :aad Condillons of Fmtlsf3C .EnergyJ ·lh.~ provisions of Rat*! $ebed{)fe 46 gov~m;

2. Additional D&finiUons

2.1 i\pflf'OVals- m<;ans·l.ho$Q ronsonts,perml{$~ fl!lflgS, <lfO~f$ Qf ether muni<:fpattprovindalr or tederalgovemrnen.ta! aulhotlty havlng junsdl of the ~NOTransportatiM Servic&,

3. Term

ovtdsofany QVar t~ny a~pem

3J T~tnl.;.lnet~m'I•Qfth!s Agr$em~llt {~t; T~nn) shalt ?On1f!t~nce on tna Effe~Uv~ Dilte "nd $lmff oxp!to OQ l~l~r than the date the .Cus~omi!r·s LNG A.~reonvml axpifes ex terminates.

4~ lNG TrutlsJ>ortittton S(frviott

4,1 Sill/Jed to the t!3in1$ ~rid ~nditlons of Rate Sch~dufe 46 ~n\1 section S oHhl~ Agr~emar.t. f{)rttsBC Energy sh~l! ps.rform theLNG Ttansportation S~.Mco:

{a} lo aCCQ!dattte with gGQd industry pttl;ct/C{!S and lfi a {!QOO arid Wri(kffiaoliko manner;

{g) In ac.cord3i~ce.<~iilh lhi'.t mquirements of app!fcab1e Approvats, taws~ rules, regula!fons and orders ofa~ty ~eg1s!ativa body. utwemmantaT agency or ifvly

{c)

ronsu!uted authOrity now or hereaiter.lnclurlfng, but not limlted to, the fed-etaf Ttanspott~tkm of Dangerous Gt;~Qd$Act and

in accordanc.fJ V.'illi all reasonable safety pte<.:e(;iures reqult~ by .the Customer \<tlth respect to !h:e Customer's prop~rty or designl;1ted ~tioo.

s. Request for LMG lransport{ttiim Servlca

s~t Subject to settlon 6.2 {AVallabllity of LNG Transportati~Jn Servi®} :<>f Rate S<nedvfe 46, if the CU$wmarwi&he$lo usc l.NtJ Transporta!lon S$Mco. tnt~ Customer or its agents shall nolify FotlisSC Enerny by fax nr ~mail pdortJ1 12:QQ am Paclflc Standi)!~ Time (or othar such u~ as may ba specified from Uma to by FortlsBC Energy} ar,9 provide fortisBC Energywilh $Uch lttfQrl)iatlon ~s mayoo requested by ForilsBC Energy~ whtcn shall include, but is not limited tO<thl) Cu~tcm11r'$ desfred quartitY of LNG and the de:sired <hit~ and time of~rnv;3! of tNG ~t th~ CuSt<>mcr deslgnatoo fooati¢ttd'tovld~o fcrtisBC Energy reeeiv~s Sl.lth notice na later than ~113 hoors prior to ths requost~d dat$ and time ¢f auiYI:}! of the tanker at thn Customer cesfgnatcd fpcat!oo.

s. S!.lb¢ontracUng

6.1 FoftlsBO .Enetgy may,\wtltoul pdor(On~ent1:1fthe Cu$tcm~r, reta!n tho st:~rvitos qf ~ qualified third party to petf<lrtltsoma or all ¢f fts obligaU<ms under tnfs Agr~sment

7. Ownership Qfthe Tanker and Renta~i of Tar1ker

7,1 own~rs~ip <>fth~ iankt)r -fodisSC I:ner9y shall r~taln aU ~ht~ lltla and lnten~$1 in arid i(l the T ~mt\<:lrwhetli~t oroot the T~nk~r{oraoy padthereoQls affiX~cHo the Cust9mers propeey ar.d.tlle Costomort~~kmwdedgos aM awees that notwithstandlnt,Iaflyru!o oflaw 9r equity to the contrary. the Tanker .shall notbe c<msldete<l a tixluto; Tho CUst9mer $h~ll have no right, UU~ or inl¢rest lfi fu~T i!ll~$fOthcr th~n UlO right ~o Nllt ?flO l!lillze the T~nk~r Jn acrordarn::o With Ute terms and vQfldi!ions oJ this A,gteament.

7{'" With (ilSp~ctto st!);~gq oftNO 111 the ranker ({t th~ Customer OOSf!Jriated tacatlon~ to the oxlent ihal FortisBC Energy nas consente(j to $UCh stot<lge,lhe Customersh~U:

(a} . oomply wiln thatequiremenls of any applicah!o ApprtNals. laws, rules, regulations and tl!ders ofany teglslativ.a body. ~CM:1mmentol ~seney or (:!uly ®!1$\itute.9 · auth<uity row or hereafter;

(b) ha responslbi(;Jot Qtl$\Jrlfl9 that the T anket Js proVided \\itfi security saUsfado!Y to FottfsBC EMrgy !o I he form of locked !enc!og. video suf'lcillance and perlo<$ic patrol outskle of business t!Out$:

(o) berespoos!W~ for aU £9Sis and expenses incurred by F()rl!-sBCErierg~lo repair:

{1} any an.daiJ damage to !he Tah~f!r allslng directly or inditt,1~Uy !(<lm !.he. ~cl$ or 9miss!~os of the Cu9tomef ()t Us ag~nt~ or other person;) for whom at law me Gu$tomer Is rosponsib!c; and

(ii} ~ny a!Jd aU damage .to !he J~n~er ari$ln~ diteeUy()rJnd1recUy from tM acts or om!sstons <~fa third p(frty.

7.3 Tho Customer acknow!edgesMd a.sreas that rortisBC Enetgy is not respansib!~ for storage of LNG in the Tanker at the Customer de:signatcd toea !Jon ar.d Is oot obligat~d to

page32of48

oon$ont to !ho Customer uslng ·tho Tanker as :storage at the Custooter designated rocauon.

s, LNG Trmk~rand Tanker Hat!Hng Charges

ft 1 tNGTariker Hau!ii1g Chatgl) -· fn addition to any fees <it c.h~rg~s r~!~ted to tho supptyof LNG Pursuant to Rate Sclmdule 45~ In exe-har.ge for pedomiMCtl by ForUsBC EnerQY ~f thelNGTransportall'oll Sa Nice, the Custom~! agrees to pay FortlsOC EnorvY til£) LNG Hauling Charse $S. set cl.ll {n the Table of Charg$s u11dcr f{aro Scherlu1o 46. aswh!ch may oo amended !o accordance v4th cSecUon2.2 {Amendment of Rate SchcrltJ!!)} of the Rnto Sclledula ••

ll2 tNGTanker Charge -In addilionto ~HtY:fees ()fChari)ns related to the sale and Olspenslnt~ of tNG pursuant toRato Schc9ulo46 ortito LNG Transportalioo Service; thE! Customer agrees .to pay Fortis13C t;nergy tne t.NG Ttlnker Cht1rgo as $ol nut lntneT ~ble of Gh~r9~$ under R?ta Sche~u!~ 46; asymfJ;;h may M amended InalXOr(.ianc&witb $ectron 2.2 {AmendmentofRal~ $~he<iuioj of fha.Ratl) Sclv~duie,.for {1({~h Day.orp~Hirsi Day that the TankertsJnuse.fot Pft>Vidi~g lholNG Transporf{ltion SCrvl¢) to th~ Cu~tomer.Jn~fuding Days orp~{ti?IPays that !h~ T<lnk~r i~ us~d to ptovide storage of LNG t~t tha Cuslomer da:SigttatM location,

{.Li Acces$.'":" The Cuslorner ~hall pfo .. ~d~ cfoar~d and !JHli!(Jd land~ ?flho customer t.itl,signated !()Catron satisfactory tt> FortisSC Energ.y to a!lo\'l FortisBC Ent)rgy tt> parf<mn the !.NGTraosJXJrtationSef'lire.J~e (;ustom~rsnel! ~n~ure that !.here~~ no ttam~at the Custon1er de~Ignated localfon within a i!.l metre peiirnetcr of lh~ Tank'lr during any ttnlo?dlng Qf LNG,

10. Permits and App.rovals

iO.i Forti~BC Ef'hlf9YAppr<?vals: ._, E::<~pt as othen'lise spe~fttHlt\ereinj Forth3BC Ener9y shal!~r~pons!blq, atils sote cost, foroblainlfi9 ~nd rn~lnt~tlning (he n~~essaty ApprO'iil!$ Vtithre~pect h> tn~ LNGTransJ>¢ftatlon.S~rt'f~ and !ll$1tlteaar.'\l oHiw It1nk:er, i~du(jln$J lh:~ n~~ssary approv~1s oUha Bntlsh CQ!umb!a l.)lilitifiS Comtnlsslon; and sharr ~nwre :)Uch Approvals ar4 uuiy trans(~rre<i orpr<>wded to the CustQmer where approprla{e. Tho Ct.Jstomar shallvsa its commardaUy re.asonab~ efforts to assist FortisBC Enet(l:/ in obtain in~) ~uctl Approvals where ne~ssary.

10i2 The Cusloft1erApprovals ~ JheCust!)rner ~hall be responsiblef :.tits so: a, cost, for obtaining andmainlalnlflg the ne.~sS$£Y Approvals feqvrred for 1he storage oftNG lntne T ~nke;at the Cuslqmt¥r desl~mated foc:atlon an(f $h~lf ?nsure such Approvar$ an~ duly transferred or l)r¢'1ide~ to F<:>riisBC Energy ~vhere itpproprlatQ. f{lrtistlC Energy shalf Lisa itsC<.Jmmerclally reasonable offortsto assist tho Customer in obtainf(lg such Approv~ls wharo necessary.

11. Termination

11.1 A party lol~!s Agreement shall be In default under this AgreemenUfsuch pi)rty becomes {osofvonl1 files ?flY ptoceqding fn bankruptcy or ac~w1res the status of a ban!<Nf!f~ has a

·-···-~-'"'·l~~ver or receiv~r man agar apju>inted With fl}Sp\let tP any of its <1ss~ts orseoks tho

page33of48

~~neiltofany$latuto p!ov!dlng protection from t!Gd!trus~ $obje£Hose£tl9n 15 of !his Agreem~nt~ a party tQ fuls<A!)r~cmenl shaH (lf~o ® ill f,iofault ullder thiS Agreement ihuch party' Is in bl~aim Qfa material term, GQVenant* agr~mcnti eondi!km or PhlfgatlM lfl1posed en Rutlder Ul!sft.greem~nt, Inducing without iimlll}t!oat fai!ur<J to comply wrfh applieablo At1flmvats, f~ws af\d reoufalions as prov!rled in !his Agreermmt, providsd:

{a) the other party prmldos the d¢faulfing party wllh a Wtitten ootieo ofsu~b dofau!t and a $0~ay Mrli:XI y.tiilifn whk~ to ceuro .su~h a defa1.1H (tho Cur() P~rioo}; anu

(b} tha dafau1Ung party fal!st(l cur<> su~h def~~!t by tho f1Xp!ry oflh~ Cvrt# P$rrod; or if ~uch d~faun fs not ~pablo of being cum<lwiti)inlha C.ora Perltxl. faits to (Onln1~!lC£l in ~faith t~e wting olsuch defaml upon reeeiflofwritten notioo fr~nlJttO othor party .and to continue to d1!ig:onut pursue the wring of su<h default tht;~rcaftcrun«l eu;C<J.

11.2 If a party tolhis A~r(j~m?nffs in uefapitof frtis Agreement, \hG oth_etparty mayal its option ~nd \'liiliout llabllity lher~fon:~ ()1 pr~jutiita to ~nyotner rfgh~ Ql remedy it may naVf)t lermln~t~ th~sAgr~em~nt, proVided thaHne dafaoltlng p~rtypay any ~nf~s duG and ~Vlft1g tq (he O!h~r P~ll}'\'t1thin Hi calandat Days of~t& oth~ls party's written notice to terminate this Agreement

11.$ E.ithet pl)rlymay termfn.at~ !h!s .Agreement ~t fltlY Umo upqn gMng 12Q t:alendardays prior written n;>U~ to th& ¢th$rparty~ •

12. AttiJUionaJ ]nsurance Requfrem1;nif~

12,1 ln$li(alt<:& Requli'Mtents oftho CU$fomor- Vfltnnut !hnilinf; se~on 7A (Required fnsut$nce}of Rate Schedule.461 th~ C\1$tomersnal1ob!a!n ~tIts own expense. mtii!tlaffl dur.ing fue Tcmn;f tht:t Agre~:mwnt l'lnd provW~ prooHo FortlsBC ei\S!tf}', tlre fo!fowfng insu£~nce tov(!rage:

{a} V'forkQt$'· Compensation lnsvra.ne<~ln a~ord?nc~ with th¢ s~etut?rt n:«~Uiff1riti1nts lo Brilish(!<Jlumbla for arllts mnptoyses Ell1$$g!1<J in any of tneylorn orseNices undert1J1sAgreomenl; and

(b} a ri1lnln1um of$5 mmlon <~fautomobife Uablliltinsutanoo and anyothadnsur4noo oovatage requftcd by law. -

;All rosuranc.a p¢Hde~ required h~r~!n ~haU provide tnat. t~e lnsutanoo vlifjj re~pect to this Agreement sh<l11not be ~ncel!edorcnang~d v~!hout ih~jnsurergwin9 aUeast 10 C{llaf\dar <lays wrltt~n noti~ to F<ffii~BC Energy (lnd$ha11 b& purchased fmm insurers f(}9l$lQreoJrtand liW!lSGd to undef\vnte insurance fn British Cotumbla, Where .ll\o Customer falls to coruplywith th& fequkemonts of this s~~Uon 12, FOrtisBCEnergymay tak~ aU necessary;stQps to af!ectsnd m~inl~in the requ!r~d msuraOO) rover age atlli(l Custornar's .;xp€nse.

12.2 lns.t~ranc~ R$ctulrcmonts offortlsBC Eneroy ~ FotnsBC Energy shell o~torn aUts own oxp~Jn~e,ma!nt3ilJ ~uring .ute.Term olthe LNG Tmnspm:falloo S~rvico AQreetnt:mt and provide ptoofto ~ha Customer upon requestt the fOllowing itl$Ul'ilfiCS 00\'erage;

{a} Work<:rs• COmpensatkiri lnsur~nce !o acc<mJanoo \\ith the statutoryrequlrcmcnls in British Coh:Jmb!a fotalllls ~nlployees engag~d Jo m'iy qf the work or sorvioos

--~~~underllih~Asre<lm~n\; Emd

page34 of 48

(b} General ~nnerclaf Uablfity fnsoranw for t)CdilY tn}ui)l. <:tooth and prop~rty damagl) in lh<l atrrount of $5 miilfiln ~r occurrence namfng Ute CustQmst as an additional Insured with re$p~Uo thls Agreement.

M ki$U{anoo rrolft!es required hi:lfefn Sh$llpttSwd$ thrlUhl)fflstlftli\J::t) \Wilt rospf;<;t to !his Agreenumtshal! not b$ ~.ntelted ()!changed~ \'tilh<~ut tfte Insurer gMng \ltleast 10 ~ate ~War day$ written rt~Jitce ~o the Ct!stomer and sh(J!f bo pw~hasoo ftom fnsur~rs reg!stqr~d in and Jie~ns~d (!.) undel\'lf'ito in~uranco ln Brltis}l Columbia. WhercfllrtisBC EmHfiY falls to 9'Jil1p1ywith the r~uiremerd.~ of this .section of lhf$ Agreem~nt, lM Customer may ta~ rut n~ssmy steps to affect ~m:i<n8fntaf!llho reqckcd iMvranoo oovafag& atfortisBC Energy's'9:<pans&.

13;1 "Ccntam!nants"'means ectlccliv4l'/. ~ny l»ntamlriant. tox!~ suhstanoos. qoogoroos gOOds. t}r p¢lfutan~ (lf~9Y ¢thot subs tan~ whl~hwMn (ftfeas~<Ho the natural envir{}f\ffient is l1i;11tyto ~U$1)• ~twmo ln!trnJdiate or M!Jff) time~ malertat harm 9rdegra~~Uon .to {ha »?Wr.al envit~nmentor matertal'ti$k.to num(m heal!b. a~d Jncltftiasanyra~ioaetlve matq~afs. asbastos.matelia!s •. ureaJmmno!dehyde~.·undcrgroun~Qr~oovegmund.taqk$~ PQ!!t~tants:.• oonroruinarlis •. defct~oous substances, rlang$rout t>ub~lanecs· ~Jr !J«Xis, hazardous. oorrosiY9 orto):ic $ubstanoos, hatatdouswasto ory;asla of any ki~ .• pesticides, defoliants, or any otherscild, Jlqoid •. g?s •. v~pqur; ooourcr any other svbs!an{)O tna·storago. manuf~el.tlrai disposa1~.handJin}).•treatment,••{J$Mratkin, u:s~;.tr9f1SJX11, rerued~lion (ltt~le:.'i.sa into tho: eo~Jlronm~nt ofwhleh is now<~rth'3roa~~rprohlblterl. wntrol!!)d t1f r~guf~ted by faw.

1~tz TfteCustomer apkooYt16dgosand agrees th~ Fmtls8C f!netgy and its t3mpfi)yeas, dkettor$ and offit<'lr$ ar~ ntltJe$ponsibleand shalf nol bet~sponslble for~ny Contaminants now pr~sent, or ptesent in lho f\llUf<?, Io. <Hl¢runder tti.e customer de\ilsflaf.ed f«ation, or tl)at n1ay or may f)ave mlg~atod on or off tho Cus1Qmord()sfgnatcd l~lkln exe~pt to the &:dent thattha pteSf)fi(C>~f such Contsminilnts ~sa direct result of the negl!gant acts or omissit,Hl!,l i?f fortisBG Ertergy or pers~>n for whom itis in la\V responsible ln ~tt)'in\1 J:ll.lt thalNQ ·rr~Hl$porlaUoo Servke,

14. Limitation ofl.fabUily ¥llcf Jrtdonmfty

14.1 Til~ Customara~owi~dge$ and egte~s thatf'ortisUC Eri&rgy ~nd It$ empi<>ye&s, d!redors and nfflcers are not responsible fora!td ~haltnot bn tosp<>nslhtefc( any dafms, losses. suits, ~ct!oris.jw:Jgments. <t~mf)nds, d~!:>t.s. acoourt(~, damages. too{s, pena!Uas and ~XJ)(t!l~$ (including (Ill l~ga1 fe~ a.od <ils9vcsemants}lncurred byiliq custcmoror ~ny ihfrd party tJX.;apl to tnt) oxt~nt S.tlch ~a101s• li>$$es, $uits. apUons,Judgments. dem~nds, debts~ acoo~mlSi {Jam~gq.s, ~sts. p?naJI~s and expenses (fncfuding ~l! legal fees and d1sburs~rnent$}ar(). a di(ecl result (lf FortlsSC Enet~y's breach ofthis A~reement, .ot the n(l{}llgcna.~ orvAntot·mtswnduttof forti~UC EnetQY• its emp!Qy<J~s ot OJfitiailtorsln petfotmff\9 \hE) LNG T mnspoiiallon Sol\'itX.i.

14;2 Jtia eustohlersha1Hndemnify andhofdhaimfoss Forlis~C EMfgy.;~mi its()mployees. dlfec;lors·and cfficorsfrof\)8fld $~~tnst any ~nd 81f clalm~h ro~tl$, SUi1$.acUons, jw.igmartt~, demands; oebh;, aecovnt$. doma~es, costs •. ptlnaltlas and qxpensi:s {Including alfte~al fe~s ~mddisbursemMt$)except to the l)xtert such tfafms.ll)sses1 suits, actions, jVdgme~ts,d~mMds, debts, a~urMi (i9i¥!a~os, ¢.'>sts. pen~ltias ami expens~s (incl4dif)gaH leg~! feos an<l dtspursomerds)ara a direct ra$tllt of Forti~SC

pngy 35 of 48

Energy's .t>tea~h of!hisAgreenwnt, orlh¢ n~l!sence .or wmful ml$c<mductcf FortlsSC Emufw,n~ emptoye~s t~rcontractors in performing thalNG T ranspmt{ltlon&uvtce.

14,3 fottl$SC Energy shalf indemnify arnHto!d harmless tho Custonlet and It$ empmyees, dlrectof$ and.(lfflC$tS from. and agalost any and a1ft,::!$fmS1 losS~$. $tiiJ$, actions. jtu:f~ments, {.femands~ debts; aCtXtvttts, damages. costs, p¢twUi~s l;llld ~xpeoses {including all legal fe(}s and dis1lursemerMJarising frqm ot out of;

{a) Ute negliganco orVii!lrut m!s!Xlnduct of fortisBC Energy. its employe~. or conttac{ors; or

(b} the breach, by FortisOC Energy of .fhls Asreement

14A Fri11isBC ~n~r~y's.U?QiJiiylothe.qustomer ~n.~flho tt~sto.mnr's liability to FtutisBCEneray undet seclion 15Qf!hls Agt~e111~11t fo.rdamttgt;s{tcm any AAUse what~oever fndudfng !rut not limited to a causa in the lfatur~ of ahmacll of a materl~i t~rm, oovenanl, agreement, colldltion or obligation fmposed under tl}ls A~mem~nt re~ardless of the lorm(sj of aeliot'l, whi'Jthertn oonttact cr tortf lndudlng rmgHgenoo or strict liability orothatwisll, $halt be !Jmited to the paymentofditettdamaoes afld$uch d!lmages shalf in oo evtnnn 11la aggteg;qta exceed $100.000 over llwTt:tol~Hh!s Agnv.lment Each party has~ <futy lo (!littgatG lh$da,m~ge$ tnatWl>Uid Q!h~f't\'i$() b.$.ftlWVtilt~bfoJf9l)1 ftte other party p~rsuant to {hl$ Agr~~l}l~ntby taking approprlat~ anct ¢Ct1lrtWrclaJ!y r~asona!lfe adl¢fl$ to reduce w llmit!ho amovnt of $Uch damages or ;;mounts,

14.5 Notviitnstan<ll!lQ tho fomgolrt~Jfll iiO averhh<JReilner r.nnty oono1spcnslote orriat)!e under thlsAg~eemen! fot$f\Yfrtofre~t, ~ns~quen!la!, pvnitlv~, ex~rnpfary or lntidenlaf damages ()f the pUnlr or any thltd fl(lJly arlsin9 o:Ul<tf or rel~t3d to the ft.9r9Qm~Jnf. in~~uding but not limit$$ .to foss of prqm~ !oss.<Jfmv¢nuas, o(9Uler spe~fal ~am(lges, ev~n lftno foss is dtre~tly <;ttobutab!e lOth~ t~egllgen<:e or V~illfuJ mlston~utt Qfstn::n party, its ~mpfoyees, cr wntmctor.s,

15. Forco MaJottrc

15; 1 Ex~pl wilhr~gar(lta a party's obligation to ma~~ paym~ntdu$ under 1he Agret;tnent; if elthE!rp~rty I$ unal;>Ie wfall~ by reas9n of forceM~Jauro to perform in whole orin part any obli9aUon (!i wvenaf}t sot forth in fuls A!)reem(lnt, sucu]nal}l!ity or fal!Ur(J sh<~ll be deanw~ ttol to bfl ~·breach of su~h obl!ga,Uon pr t;I)YJJt1af1t and Jll~ obtlgat!ons .ofbotn p?rties tmd~r . this Asre~nrent shall be su~pandeq to ilia e;dentneeessary tf!Jrfttg the wntinuation of any Jriab!lity ot failure so <iausad hy$uch fotroMaJeura.

15.2 Tha ~rti~slntend Utat!ho t~un "Fqr~ Maj$Uro• $hsll MV(llhe ~me me~ning as in the Rata Sehedl.lia, and without limiUng thatprovisioni FoJce M?leure undertft!s Agre~ment atso includes.~

(a) iJtlriltilltab!Hty ()f tl\'Gfrom lhal~RJ Faci!ilios by was<.m of curtalhnenror otnof'l\11$o; arid

{b) unavaifablllty.oUhaT<ln~er du~ .to· Fm~sac f."ner9y'$ usa <>f the Tankerfo ptqvidiog. emergonpy s;eJVices ·*'~.maybe rt;lqutrcd in t(}e $yent of FqrtlsBC Energy's pipeline faUute or olher 9isruptk>n to the Fortls13C Energy System;

{c) dlsmpl!on in third Ra1ty halllii1g smvfces.

page36of48

16. Stlrviva1

1$>1 Upon the tennlnatiott~flhtsAgreem~mt;

(a) All cla1!lls. oouse$ of aetlon or o!her outstanding t~bligat!6ns remaining m: betng unMnHedas at lli~ date of lermfnatton, and,

{b) An of the ptov'islons in th1sagreem<~nt re!atlrtg tolh~ <~bligalion of cilher orin~ partie$ fo pro't'fde mfom1atian to the oilier in cqnned!on wHh.lhls Agr¢;ement

will sulvive.su<;h tern\inatlon.

11. General

11.1 Anttnttlnumts t<> be irfWdttng.,.. Ext;opt as <>Uterw!se set ~ot tn the Rate SchedO!$l no ?m(!ndmcnt or variation of tpls LNO<TranspoJtaUoo Serv:f<:o }\Ureemllflhvi!l heeff{lcliye or bindlt.g tiAAJ'I fhl) parlies \.IOles$ ~uch am~ndrna!it or vari~U(IJ'l is sot oui in writing ~lld duly :executed by Uie pattl~s~

11 ~2 Nottce-Any notiC$$ w otfi$r~cOOlfl11Jil1catton v;hh;h nia)rbo uri~ f'et!uke<j io be given Qf

m1;1de pursu~nHo lli~ A~reementsha!l, unless olhe1Wi$e t;XptMsly prcvld~d here!~. shall be Inwttlin~ and shall 1m personaliy dtllvertd {Q .orsunt by faosim!fe to eitl)er party.~t its address s~t forth \lofow: ·

!f.!Q£orus8C ·EneTg)!

MAiliNG AODRESS:

If to lhe Customer

MAlliNGAOORESS:

fORTtSBC EN~RGYlNC.

1iil:QSfr<lset High\'lay $Yrrcy~ RC. V4NQE3

17~3 SaverabtUty ·~If ~n)'pr<JV!s!{.)!i ofthis Agreamenf is detem1inoo by a cctntof corop!Jlertl jurisdiction fo bt; invalid, illegal or unenforceable in any respec(. su~ determ1mt1iot:l do(ls oot lmpalr or affect 1he v~lidity, feg~lity orenfor~abi!ity of 311)' otMr pr¢V{sltm. of this Agrf)t:menL

17.4 Ex~~uUM-" ThlsAgreerrtem may UQ .,xewfedJn c;ounterpartsj >each o!vthl<:h shallb~ dl3eme4 as an orig1nal, bijt aU ofwhJch shai! eonstltut(J cme and the same fn$!roment. Dt:Jlivery of an executed <?Unterpad oHhl$ fetter ~y f<lC$hni!e or eleqtonlc transm1$Sl<Jn hereof.shall be as effectiVe as delivery of arrotigioally executed <Xlunterpart hereof.

IN WITNI!SSWHEREOF the p;acti~s hereto have e;.:e~uted this Ag!~~ment as of tho day and yeadlrst ~:txwo wollcn. ·

tORTiSBC ENERGY JNC. by lts autnorlzad sfgna!cry:

, APPENDIX 2

Between

FORTJSSQ ENERGY{VANCOUVER JStANO) INC.

FORT1SBC ENERGY INC.

pagc39of48

GASl!QU~fACTlON. STORAGE ANDOl$PENSlNG SERVICE AGREeMfHH

1ttts. GAS UUUEFAQTtON. STORAGE AND QISPENSJNG SERVICE AGREEMENT made as of this~-. day~f • 2Qt3.

BE1WEEJ·h

FORJJSBC ENERGY (VANCOUVEB !StAND) INC. a ccntpany inGOrpota!ad under (he I~W-$ QHldUSh :Cof!Jm~ia llflV~ng an offic-e at 16705 Fraser HlgnwayrSurrey; British Columbia eFEVI"}

f'ORTlSBC ENERGY ~Me. a company lnecmorated under li\$ taws of BrlU$h c~.!Jq1bia havinQ an ofnC\l at t6'1Q5 Fraser Highway. Surwy. UtiUsh Cof!Jm~la {"FEl~)

A ftVi ¢p~ralasallquefied Nalvrei f.){ls('lNG~}Stqrsgo f{Jci!Uy ori VancouverJsUmdat ~o\Jt'lt Hayes neerL<ldysm!lli.

B. fi!Vt oporates an lnlegrated natural gas tronsmi$$!on ~nd dl~l.rlbutfon sy$tom Ul(}t setves eustomers ¢1ll.he Suosbrna C¢~$tand V~flt\>l.Ncr ts!imd ..

c. F€tvAs~o$lO oonuact \'lith. FEVI forga$liquafat;tiOn, $lora9~ and dispensing ser;tces for th!l bsMflt ¢f F.f~l's rusb,>mnrs Ut1d~r ns Rilto·Sdtadtde 46 "'· Uquelied N${¥taf Gas ~ales, Dispensing and Trarispor(ation $(irvioo.

NOW THEREFORE, 1n <:onsldetatioll of Ute promlses set forth lwtc!n. and oUier .QOO<i artd val!Jabfe tonsideraUQni U}i) riltefpl arid sutncfen6y of vthfCh are hereby acknoviled~ad~ the Pa~tfl)$ agr~l.'t ~~ foUow~:

fo lhis A~reement:

•Agr¢enwnt" mearrs tJ11s Gasl1qttefa¢tl<>:IJ, $torztge <lnd ()lsp~!)sfng Se!\1¥() f\green\enl;

nacuc .. m~afl~ 1ft!;) Srlti$hC¢!Umb!a Uti!ltiesccmmi$siqn af!dcriY $lJcci!ssor regulatory authority~

uoay'' means ·any period o{ 24 toflsacuUvtt hou(s beginnin~ and ending at ·12;00 J)1fdrdght;

pagc40or48

"fEVI System .. means the f£\11 tran~n1l$$1on sys~cm~

01Forofl MaJour~·· mean$ any ~cl$ of ~od. $hike~, kx:ko\lts, or ritner fndus!rlal dist\Jrln'ln~st dvil dish.uban~s. t!rtests and restraints :of ru!ors or per;p!a, fnteuvpUoo'S by govwmnen* or cct)tt order$ •. present or f\ltur~J v;~lid. ¢1dcts of any re!Jultdory booy havfngp.ropar Jurisdit;Uon, ?cts of tha pub1icanerny~ wars. ~ots. b!ackputs, fO$turec!lorts, failure or Inability to securt:~ n1ateriais or f~boor by reason :or re!Julatkm~ or Qfders of govemmont. · ~cdotis epidetnfG$~ landsi!desi Hghtnlng, earthquakes, fi(es, storm$, jl<;xXf$; wastmuls, exp!~ions, brt}akasa w a¢idt:nt to mactifnary. liquofa~U<m, storage, ~no dispensing equipment, Qdlnas (If pi~$, orft~tlzln\t 9f w~lls or p!pelitl~. or UtQ failure¢( gas supply, tel}1~"raf¥ or o!fnm•/i$ei Jrom a :;;uppliat of Gas. or a declaration of For~ Majeurf) by a gas transport~r ·that r0suns In 9tis b$!ng unavailable fer do~vel}l at the tnteroonnedfon Point. or a.ny m<1Jor dfsat,l!lng $yoot or droJmstafl~·in relation t<> nw norlli~i operatiorts of ihe party e<Jm:~med as a who!~ whicll is bQyl)!1<i t~~ r~ason~pie p;ottol. t;~f th(; party~ir~ctfy affected andresurts ht•a materlaldefay,. !nteuupUon tif.faiftu~ by llUth ~arty in carrying <>vt R~ ()bilgaUons under lh~ Aoretlment. Foree M~jeurf.l ttv~mls canfl<)t Qf! duo to oeg!!genoo tJf lh~ p,arty claiming FQfCo M~jemo;

tiJr.t,ctc~iltiilcUon Puint" fl)e~ns ti1o . pofrt! whetti Ut~ forttsaC Ert~f'9Y System fntarconMeis \Vi~h ttiefacmues ofWnstroast Ener{}Y fn¢~ atSvmas~

11UiG*J moans lfquefit~d natun1lgas;

"LNG F~emty" i~ the LNG PtQdvcllcri an<i Slotag~ facility at Mtiunt Hay~s o~Jar laQysmith t)rl Wncoover tsland;

H~h;rvfeo Chl:lr.go" m~~n$ !h*l~harg(} f<X LNG servlc~ ~9l~t in section 1;

s•supp!!et()f G~sJ' metJns a pattywhq ~~ns na{ural g~Is Jq fEVl qrFEf;

'Jfanket' means ·~.· ctyogerlicte~p~acl{l us~ .• tot ret~Mtiih slorlng ami tiansp\lrtlng LNG, includirtg \\ilhout 1imltatl~n, portable tankers, ISO <:<.ml~in~r$, vessel~ cr otnar sfft~l?ru<Jtl!pm<lrtt;

"Tram~portfir'• rt\o~n$ We$tcoast Er~tlf9Y fn¢1• PonisBC H~nlingdon fne., ~md $ny other gas plpelinfl trans~r!~tiQn ~mp~ny ®fHWCtt)d lo lha. (atiHiias of FEJ fr<ml \'fh!ch FEI re~lvas natural uas fattM purposias ofnatural gas ttanaporltitiOn or resale.

_,2~-

QAS l!QUEFACTfON, STORAGE N{tl C!SPfNSl~4G SERVfCE AGREEMfiNT

2.1 The c001m~n~roent data for tho pmvf$!Ofl of tNG Se!Vloo under thfs Agr~emenUs the Jatar of Juno 1, 2014 or such date notffi~d by fEVJ !~ FEt pursu<:tnt l<> sm::i!t'Jn 2.4 ("ComtMneement oate~J.

2.2 !hi) term of this Agr~ameni shnll<oolinue until termtnaU¢n qr axplry of tM Stma{Ja and D~livery Agr~ment m<td~? helY/ecOn the p3rli$s a:s of Janual¥ 10, 2006(tha •teTm") and 3S amended fr¢111 tintl) to uw.e.

2.3 Nctwi!hstanrnni) SettiM 2.2, fEfmay provide FEVI \vltlrtwo mQ"nth$' v;rlUen r.<Jllet) of termlnaUQO ahmy tlrn$ durlt1!J ilio t~iin >?f tnu Anreeinont

2A FE\lf vriil pro\'ide uv d~yswnnen prior nolfce to FE! vftha ~ommenc~mer.l oatEh FEVI vnll notify "ff;J jn wri~ng of ~;my expected cllpl19ein ~~ COJ1lmenct)m~ntPa,to duo !o defay in. oomnv.mOJment of :eo:o$lru<:litm ()f {flo faGUity n~s!lafY tq provide ·LNG Dispensing S¢1ViCG•

3.1 Dynn{J the T~mlo[Uds A{Jreeml3nt~ fEVLWill n9uety ~as supp1iad by FEtor FEl'$ t;UStcmet$ ftlrtha p~rposo~ an? ttt~n. $\ore and dlspapsc suctr LNG .into T~nkers {tho ·LNG $rv1ceu}Pt9Vil:tcl$ py FE! or FEl's ev~tQmers; lil!~ tra11sf&r slwU ~ttratthe inlet flatig& .iifthe Tanker <~rat llil;) outlet flange pf th~ FEVi mete)" as ~ppikat.l!e. fEJ shalt at aU Urnes bf; trt ~J1lpttanee vlilh lh& reql.lfteriJ¢nts ofaU appl!caWe Iavis, ru~es~ tegulattons and. t:~rdets of any legislative bodY~ govemmen!af agency or duly eonsmutGd auttH>rlty now orhtneaftet:. tndooiog. ·but not limited to. lllt1 fed~uaf Tr$:!lSPqrtaflon ¢! oangerovs (jaods Act a® assoclated te:gu!;ltloris and .British C<l!umbla*s EllvlrMtntmfst M<JtU:i!JiJ(lJ&nt Act and assl;)ciat6qreou1a~ions; · FEI$bai! re~~ka 6flt$tuston1e!S that any pct$OOM1, y()IJfcl$ or Tan~er pr<widud pyits p,tstom(Jf$ or their aoeots (Qr tNG SoNIC{) meet~lthose requkcments.

3;2 NQtwlthstalld1l1}l secl!on 3 aoove. FEV! mayat its sofa distretion. rotu~e to pr~;wldt> LNG Servl~~ to an'/ of tEl'$ et.lsliJm~r$, tf in fEy!'s op!r~lon, the sueply <lftNG to such customer lllay bo ~ttary to ~tlY lawsf nile$. tegulalions aM orders of at~y feg!sfative body, {IOVOulmemtal . ailoncy t1( duty · Cf,}nstiMEXi atdlwrily now or hereaft¢r having Jwtsdlction fttil!I,IQi~~· but not Hm1~c4 to, the f~dor~d rranS[KJrl?fiOn cf Dang~f(J!J$ <!00!/S Act~nd il$ ass(}clated Ji'!SUiaUQns and .BrlUsh Columbla's Eqv!ronmcntel Mtm<tgcmcnf Actand associated regufaUo!ls.

3.3 At least 24 hours ln adv~rt~e of the Pay of fEl's ¢r rEI's ~ustome(s desired load !Jig lime, fEtor Ff~1's customer orlfs agent. as tho tasa fli;:iy be, \1rlllptoY!<fG FEW by fax or ~mail. p!jor(o 12;® <'l.IJl. P~ctf!c §tandar<$ Timl} 011 eatb Day (orsu~h clher time (l$ may bo agteed to fwm tim a to Ume QY tnl). parue$} such lf!(ormaUon as may b<) rAAu~s!ed by fEVfi \'if11ch vlill includo.t>uti$not limited to~ FE1's <1nd lt$ customers~ ;eq~Jested quantity

.. a ...

GAS U<iiJEfACl!Oii, STORAGE AKtl P!SPENS!HG SERVlCSAGREEMENT

pnge42of48

t>fLNG f9f the giVt)ll Day. Loading of Tankers Vii~h lNG shall 1ako pl<ica bol\•retlo 8:~0 a.m~ ,. 4tOO p.m. (Pa.(Jfi(} $tandarq nma) Mondt1Y thrcu~h Friday {exq\fdmg Bri!Ish CQiunib!a statuto1y Mib:fays}orsuch otnerlfmes as agreed upon by tho parties frij!n lime totlme.

4. CONTRACT tEVE!.S

FEVI will make av.allahle to FEI ~ mimlnum of 17,600 G1{lttjnulas per week of LNt) $ervloo ~t the LNG Facility or su<:h ollitll' ro1n1flium ormilx!mum wm*lyvclumes as may be detertnin~d from time t<l timfJ by. FEVf with reference • to .lhn lNQ requirements of !.h:u::f) oflnq parties~

6; PERFORMANCE OBUOATfONS

5.1 $ubj~ct !o s¢cUon 6, for.:e Majourgf FEVl sha!lprC~vfda LNG SON1<:Q on ~a~1l day ox~pt when pfann$d.nltllntenance ()f Ute· ~NG fac!Jity prevents tEVl from provkliny.th~ lNG Survtoo.

6,2 FEYI ~~l!t.!so r~asonable ¢(rtnl?rct~l ¢!forts lo $~eduf~ p!an~ed m~lnfona~c$ sl,i~ {fiat pl~nn~d rnalnten?noodo~sooHnt<tffetewithpn.widtngth~ tNG $13rv!ca. PriorlgAprli 1 of C~lch ·yel:Jr in tho Tenn •.. fE\jl \'til!. provfde·.FEI with a foreeast·sciledu}u.ofpfannad malntenam:e tetake plaea ov~t tM n~xt 1.2 months.

6+1 Ex®pt for Ft:l's obligation to mak(l paynwntsundet lhls A~re13rMl11, if .~!th~r Party is rendered unable~ lowllolc or in part, by For® MaJOW.fJ to cauy ovUts obligatiOns under thi~ Asl'~~.iflent1 th~h upon suejl Patty's gMr.g notica cfth& particu11)f$ otsucb Foreti MaJ~vr~. to lila other Party as s~Xln a$ reas~ab!y pl{sslb!e (wi~ such nol1¢tJ to b!l confirmed In \'lritlng}/th& obligation~ ()f .IJl~ .. P<~!lf {}ivin!J $Vt;h nolice,fronl tne iri<:eplion of i~e forC\l MaJeur(), v41i be $Uspeiided and axwsed dun~ tM oontimJanco of aoy tnabi!ity so caustld. Tho ob!Jgatit)ns ol\h!l {tffe~tE!d P~rty \'>'ia btt suspended ;;fnd {}XCUsed f¢( such timo only to the extent lh~y are cffecteQ bysu~h For~ Ma}eum. The caiJse of Ina Fotce MaJoure \'4!1 ooremauied by !he affected PartY With ail teascmapl? tHlganee and <iisp~tcfi.

7. $ERVlCE CHARGE

Each month, Ft:I will pay to FEVf~n amount{th$ ':~et'lit~ Charge"} per g!f!ajoule oft.NG Uquetied, sto1ed and dfspansed under thfs Asre:ementqqval to the. Mal of Ute Oqlivery Charge per Glga!otllo{not fncMHr.g any .premiums ltHll may be th.,rged by FE1 to FF;rs custome;s)s~t m.11it1 FEi~~ Rato Schedvlo ~6 fcrFEI'slong-Term and Short~ Term LNG v

Service; as adjustoo or amended from Urn~ f<> lim& by FEJ.

6;1 F£!VI wlllprnvido fEi by the15~ day of eacll month beg!noingtn !he month fofki•Ning Uta conunEmtormmt of tho term {)( thls Agrecmont.wi\h an lmo!ci) for tha $etvi~o Clnnges fGf UlG SeNice provided in the Pf~eedioo m<:n!h ptvs ap}lficabl& taxes.ln ilia ·ov&nt lhat FElJs lata In P<1y$~HllM lnv(}ic~ then FEVI wjll ~ssoss fEl and FEl wm pay to FEVl a late p.aymanUne tJqual to l~e (tlrrent prima interest rate ehafgerJ by the Main Bran~h nf the Toront<rOomln!on <San,%: fn. V~ncooverl B.rltisn. Coturnbla1 to . i~ Joost crerlitvl¢rtllY ~flli)Hlt~i<lf cu~lomcrs, pius 4%, per tlt\mJm calculated on a daily basis;

O. NOltCES

~M Exr~plas truiY !>e exptcssly provkJed othetwiso in fuis Asreemeot, any notice~. tQqu~s!. auth,oril9!1on~ d!Hldion, <lt other wmniuntcaUon t~r,dar tij!s Agreement w11f oo msda given rn \Wil!ng ami will b~ d_elivqred In .pe!$<lfl~ or by facsimite lrnnsmisskm* properl]' adt.Jt~W.!dtoth@·Jntenood reclpi{11l\~$ folwws:

b)

If t(}FEt fonisBC cf!ergy lnv~ 1670S fraser H~hway Surc~y, B.C. V4NOE!l

~ At~f!ntklfl: ypl El1Ctf.!YSupply &Rosooroo o~velopm~nt f:<l$$Jmitc: tm~H;92*7420

If to fEVI: forti$BCEnergy {V~r'l,ouvor lslanrl)Jr.o. i!l105 Fraser rli~hway SUi'(6}',;8J). V4N.OEG AUMUoo: VP; Strate$~ j:}h)nning. CcrJX)calQ DovelopnHmt

&R~gu!atqJYAffa!rs Facstmile: {)04·57EM074

Either Party may change It~ addre~ f!p~tiued abo'wi b)' sMm.rtM oUnu Party notie$ ~J $11th chang& fo accordance wHh U:tis $t1Ction9j

~

10.1 Ihi$ A9ftHml$ot and tho t&Sjl!Jetivo fights end uuU~s of lhe ParUe~ arising out Qf Ws Agreemaot:will belJ()Vem~ bYJlod rohS!fued*enforce<fand pelforfTiridfn acoordanre with the 1aws of the Prcwln~ of f}fitisb Ccl1.1mbla.

11. EfFECT OFWAlVERORCON$ENT

n~ 1 Nci \'l<tl'ier or consent by ei!h~rP~rty. expi6ssed ~rirnPlicd, or any breach or{fqtatiltby the o~erParly in the performan~of any of. such other Pilr\YS obl!g~tkms under Uli$ AgreJJmantwill oparaPJ .or be Q)ns!Iuad as a waiver or_C<lfl~{Jnt to any oth11rhreath or default h~tcun<iot, Fa\!uro of a Party. to cpmpluin of any act of the· o!h~r. Party ilf .to d&cliJr~ tbe olher PBltJ in bre9ch or def3VRV;itfi respecHo this Asreemen~~ lrrespe~!tve

··5•.•

GAS UUIJEfACTION,STOAAGEANO OlSf>EflSl!K> SERVlCf:AGREEMfNT

Qf h()W tong that faitvre continues~ doos not(onslitute a waiwlrbyiM P~rty c>f any oNts rights wilh respqct to ihat br~a<:h '<>f tJafault.

·12. HEAOINGS

12.1 lh() headirigs for !fie s~~Uons oflhls Agreement ate ft~t CC!nllelli$(lcij qftafetohca only andJn no W<iY afted the meamng or mt${prataUon of any of the proVisions rif this Agreament

13. $EVEAABIUrY

13.1 I;x¢pt a,s otharviise sfut~d in thiG t\gr~emcnl, any .• pro'lisfcn Qt ;$eqtlon declared « ren~arefi vnwwful by a col.!rt of lpw or r.;gu!alofY asancy wilh jvdsdtct!on tN¢r this A9reel11t}nt, thG Parties (){ ~lUter cfUtam,> .or deomed •· unla\vful ~oauso qf $latut~ry ett!fooe. win Uwrllupon be daomad to have been sovered from {his AgreQtMntand vii!i not aUleNAs$ affect the 11'1\'lful f.!bflgatfurt$ ihat ans& under. oilier J1foVisf<ms of thls .A.greement

14.1 Su~jactto lhe proVistooo oftnts section 14. {hi$1\gree!ll~ntwi!l enure tt>amfl)e binding upon tna (~,spactiva SUt;~~~s andperm~ttedasslgn~ oftha Partt~s. NeilMrParty may assfgnlhtsAgreem~'nt w!thqutlhe prior wtitten eons9ol of the otnerParty. whtcll ~ns~nt wif.l not be urtmas~Jn~tJ1y w}thtlakl; p\ovlde4 •. IJ:lat ~it~r Party. may • asslgn. its interest undet this Agreement {a)lo any nntity that, dfrecUy cr in~ir¢cUyj through on~ ot m~ro interm~dtarics.1;9llffcfs. or is contfOlfed by, or is undar common ~nifo! yi\{h ~tlch Party~ (b)to any enUiy futQ whlc)l It ronsolidales or merg.as or(c} ~$ $eCUrity to lh6 !!olUer t>f al}y 1ndebtedi\$$S~ ptesentor fut~f!), of $Uch Parly4 wUhout the prior Writi~o appr9Val of the ¢h~rP<trty1 but nosucha.ssi$Jn(l1entw11t Qperatetore!ieve ill& (l$S!gntng P~rtyof any of Us ®ttgat!Qn$ under thts Agreem~nt ;\ny Pafty's !nmsfer !Jr assi9nn1ant In vio!at(on of this secUon 14 will bovii!d,

15. RESPONSiBlUtY FOR DAMAGE

1$~ 1 As 1Jelwean th& P~nUes. · FtV! w!lt l)e deemed to ~G in exc!ustv~ control and possessi<m (}f gas vmfch ls 1he subject nf:lhis Agreement and will be. resp<>nslh!(t for af\ydama{le tJr lnjtuy C(lU$ed ·lhi}{Qb)' prior t!J th~ peylnt oflt?~$fer of lill$ :et out ln s~.ctioo3, As betwoen the Partias!. FEl wi!i be doemqd to be responsibl!t for a(ly damag& or injury or damage caused thotoby~ftcr tM po!nt etwhlch PEl or FEi's «J$t®lersreceiv~~ gas pur$uanHa th!sAgreement.

··6·~

page45of48

16. INOEMNITY

16.1 FEituueby fnd~mniff® aoo saves FEVl h~rmlessJrom and {\gafnst all. clafrns by FEI's tustQmets and any olhet thttd parties In re$pt)Cl to loss of fi(a. pef'S{)nal InJury, l&ss or damage to property relatrns to toe pr:ovisioo ¢f LNG SeJVice fo fEYs custoroefs~

17. TERMiMATlON

t7 .1 If lliftw Parl}t is at any tin1e 1nmatedafbreacp ~fiN.· def$ultunder ihls Agroomont (the "Oefao!!ing Party"j, the otber Party (th!l "termmatlng Party") yilU have the right to terminate. this Agreemfint by gMn{) the Oefa1J!Ung Party written nCiUcc of su41 termim\Uort. ~u~tetinlnaUon \*ill! b~ ~ffectiva tiptin the Oefautiing PartY's retoi!KM st.'cll notioo of termination .• pursuafil. ~o fflls·s~.Jdort17.· Fo;, thG pu!Pt)~e; of nih~ sc~Utin Jr •. a Party will be doomed to baJn mat~rh~lbteaw ff w defavlt vrHler Ulis Agr~$mont tf$ucl} Party;

a) falls to turtl any materia! btoam t.mderthis A~reementby suth P$M piiQr to the latetof (f) l}te I)Xpir~lton pfth!rty d~;'$ a~~r th~ Tt;tmm~Ung. Party f)tve~ the Oefat.,l!l.ing Patty wn~t~n nPtif;S 9fllie bt(Ht~ or d~f{)IJti; ~nd (H) the d~b~ upon which the T~rmloetiflS P$rly gives the Defaul!it:g P3rty · wrlHon notice or t;)tfrtinal!om ·

1>} Is unable to meet its ohfigallcns <.~s !n~y bQtQfl1@ doe or such Pa~ lfabllitles oxce(Nj Us i'i§S<Jf$10 tlleaootega!t;; qr •

c) mak11s ~ go~arel il$$!gnment ohuhs!~mt!a!ty iill of!t$ assets fOf ilia !Wriefi~t> oflts e..reditors. fifes a petition of bt:mkruptcy, ~mmcntl)s. &uthorlzes or a«tUiS$~S in the ccrnrneneernent ofa pr()¢eedlng orcausn under any bankruptcy, illsolvcncy Qr sfrnliar law fer the pwte~Upn of aedi!qro • or ~ave such pelitiQf! .. fited or pr«:eetiiA9 CQmtnlllli~!J ~g~fn~t it, qr $6&~$ olh~rrellef uw:Jor any app!l~b!~ triso!vency laws.

In no ovent w;thithcr Party Incur any !!abilitY (whalher Cor !osltov~nues ct~st profit$ or , other.'liso} ~sa rosult Qf~ny tcun1ttath~f1t)f lti!SAgre~ment pu!'$uf!nt to>fhts $C<ltlo{l 17,

11.2 All righls ami rerilerlles 61 elth~rP:ntyvn\f:er !h!sAgtt~t1inent an~ &ti?WMU ~n equlty \'6!f bo w«mtativ~ and oot mu{IJaUy cxtfosivo and th~ ~x~rcls~ by (}no Party pf one: rtght or r~nnody wl!t Mt be daamlld a waiVer of any other fight ortermidy tWaUabfo to !hat Party.· Nottiln{i ~ntatn4d If! a11y pn)visian ofUlisAgrc~nwntwill be c.on~IJued b:rJ!m!tw ~xdud? any rlghtor remMy cfeilharParty (arising on a~tmt ot \ne bro~~ c>r tf~fcWRby ttte ollior·Party or ollitllviise}nov/ or hetcartor oxisl1~ under any other provision ofthls Agrcem~itt;

·~T~·

GAS UOUEFACT!ON, STORAGE AND OlSPENSING SEHVfCEAGRE£1,t~NT

page 46 cf 48

16. WAIVER OF CERTAIN DAMAGES

18.1 Suiijoct to the fndenlnity provided to ft!Vi lf\ saetkm iu. to no <Jther ev.ent villi ailher Party he liaWo to ll1a <itMr Patty for ci>Jisequentlal; tnddentaf, pu.nnwe, special. e;;;.ernp!ary <lf indirect rlam$-ges~ In t<i.rti s.bict .liab!tily, warranty, CQntract, equity or othe:rwisa.

1\l. PlSFUTERESOLU'J'tON

19.1 AA!·disputes arl$1ng.un~eronefafing to this Agreemen!j exc$.f>l Mly dis,pur~swiiJfresp$cl to whfch the BCUC has juris<licUon •. Whlth the BCUC fs prepare<;~ to GX~tcis<l~ Sh<)Jl, afttlt th~ partlos have aHernple~ lfl goodfaHh to SfJtU9: Uw disP!.It~ bl)tv/~en lliamselvcs~ · b~ subm!tted to and tl!la!!y s$Ul~ by atbllratlon ~ndqrthQ. Commercial Arbllfafion Act. 'The atb!tfatUm \Viii taka place in Vtinoouvorj nntisil Co!vmbiP ~fore a $lngi£J ~rbitrator and w111t>o ~dminf$fered by Uta British CotunlblaiC<>mnt.Qt~frtfl)ibitfatllltl pantto {*BClCAO~) fn t1~00tdtlt1C:t1 wi~l'tlt$ "'Pr¢¢Q¢ur.os (or CaS¢$ under l.h¢ HGICAC RUI&$.

20.1 Thi$ J\gr~ement .!;9n~litvt~$ Ill~ ~ntir~ agr~~ment and $uparsedes all.¢1hers beJween·me , ParlMs tc!alit'!g to tho $UbJeotn1altiJi'tontemptated w tnis 1\.groeimint TMrc ere no prior Ct- ~()~femfXl!ao<totis ?grecntents or repr~~nttition~ (wMllier wrllten ()(()tel} 11ffac~ng ~Uctt subja<;tmatl~H'; No ameO(!!ll~t. nl<!Qif.~U91ll/r ~&J!Je lo !hi$ Asm#Jm~nt Will b~ enfor~abfe,. ~xcept 111·~ · spe~ifit:sUy pr1)vfd~d for tn this Agreemen~ unless r~duccd to Wtiting and ltereanct sfgnoo (WhkJl n1ayba dona hyfacsinma) by ooih Paithis.

~•S~~

GASUQIJEFACTJON, SiOR,I\GE#lD OISP€NSf}tG$tRViCE MR~t:Mt:N'f

IN WiTNESS WHERi:OF, .V'ie Patties fwV!} caused this Agteement to be duly ~x~~ut¢d by thek authootedtepresentafivssas oftne data tirsh•uiUen ab()ve.

FQRliSBC ENeRGY {VANCOUVER ISlANO)INC.

fORTISSC ENERGYl.NC.

~"9·,.-

QA~tiQUE;FACJ!ON •. $TOf<AGE t\"4.0DJS?EI1SING SERVICE AGREEME~lf

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November 28, 2013...costs equal to the utility's weighted average cost ofcnpita1 1 in the utility's natural gas c1uss of servke rate base. 'LNG rate schedule and LNG purchase agreement