RFO Questions & Answers

1. Instead of an exchange or a gas sale, will SoCalGas consider offers that simply commit deliveries to SoCalGas at Ehrenberg?
   
   Yes.

2. If one commits to deliveries at Ehrenberg, must one provide its own access rights to reach the city gate?
   
   Yes.

3. For an exchange offer, is Respondent responsible for having or obtaining access rights?
   
   No.

4. For deliveries to storage, who will provide the storage capacity and will storage variable charges apply?
   
   SoCalGas will provide the storage capacity and no storage variable charges will apply to the supplier.

5. For baseload offers, can the offers specify select months in the year or must the entire year be offered, and can each month be priced differently?
   
   

   Individual months can be offered with different prices; there is no obligation to offer the entire year at one price.

6. If the months selected do not meet SoCalGas’ needs, how will SoCalGas handle that?
   
   SoCalGas will use the negotiation phase to reconstruct the agreements to meet its needs.
7. Will SoCalGas accept multiple offers of 500,000 Dth from the same party?
   
   Yes.

8. Are performance commitments relieved by force majeure events?
   
   Force majeure events will be negotiated and specified in the agreement.
9. If one has firm assets in the basins but does not have firm transport on El Paso to
   Ehrenberg, will SoCalGas accept the gas in the basin or accept transport based on
   interruptible or secondary transport rights?
   
   SoCalGas will consider all offers.