Nautilus Pipeline Company, LLC

Original Volume No. 1

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

Original Sheet No. 252 Original Sheet No. 252 : Effective

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE FT-1

ARTICLE XI

NONRECOURSE OBLIGATION OF

LIMITED LIABILITY COMPANY,

MEMBERS AND OPERATOR

Shipper acknowledges and agrees that (a) Transporter is a

Delaware limited liability company; (b) Shipper shall have no

recourse against any member of Transporter with respect to

Transporter's obligations under this Service Agreement and

its sole recourse shall be against the assets of Transporter,

irrespective of any failure to comply with applicable law or

any provision of this Service Agreement; (c) no claim shall

be made against any member of Transporter under or in

connection with this Service Agreement; (d) no claims shall

be made against the Operator, its officers, employees, and

agents, under or in connection with this Service Agreement

and the performance of its duties as Operator (provided that

this provision shall not bar claims resulting from the gross

negligence or willful misconduct of the Operator) and Shipper

shall provide the Operator with a waiver of subrogation of

Shipper's insurance company for all such claims; and (e) this

representation is made expressly for the benefit of the

members in Transporter and the Operator.

ARTICLE XII

INTERPRETATION

12.1 The parties hereto agree that the interpretation and

performance of this Service Agreement must be in

accordance with the laws of the State of Texas without

recourse to the law governing conflict of laws which

would require the application of the laws of another

state.