Nautilus Pipeline Company, LLC

Original Volume No. 1

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

Original Sheet No. 274 Original Sheet No. 274 : Effective

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE FT-3

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.

12.2 This Service Agreement and the obligations of the

parties are subject to all present and future valid

laws with respect to the subject matter, State and

Federal, and to all valid present and future orders,

rules, and regulations of duly constituted authorities

having jurisdiction.