Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 12/01/1997, Docket: CP96-790-003, Status: Effective

Original Sheet No. 108 Original Sheet No. 108 : Effective

GENERAL TERMS AND CONDITIONS

7. POSSESSION OF NATURAL GAS

7.1 Control of Natural Gas

Transporter shall be deemed to be in control and

possession of the Natural Gas upon receipt of such

Natural Gas at the Point(s) of Receipt until it shall

have been delivered to Shipper or for Shipper's account

at the Point(s) of Delivery. Transporter shall not be

deemed to be in control and possession of such Natural

Gas either prior to such receipt by Transporter or

after such delivery.

7.2 Responsibility

Transporter shall have no responsibility with respect

to any Natural Gas or on account of anything which may

be done, happen, or arise with respect to such Natural

Gas before receipt of such Natural Gas by Transporter

or after delivery of such Natural Gas by Transporter,

and Shipper shall have no responsibility with respect

to any Natural Gas or on account of anything which may

be done, happen or arise with respect to such Natural

Gas while such Natural Gas is in Transporter's

possession so long as such Natural Gas meets

Transporter's specifications under Sections 3 and 4

hereof; provided, however, in the event any Natural Gas

flows through facilities of Shipper or any third party

prior to such delivery, Transporter shall have no

responsibility with respect to any Natural Gas or on

account of anything which may be done, happen, or arise

with respect to such Natural Gas while in the

facilities of Shipper or such third party. Provided

further, the party deemed to be in control and

possession of the Natural Gas to be transported shall

be responsible for and shall indemnify the other party

with respect to any losses, claims, liabilities or

damages (except punitive or consequential damages)

arising therefrom.