Nautilus Pipeline Company, LLC

Original Volume No. 1

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

Original Sheet No. 286 Original Sheet No. 286 : Effective

FORM OF SERVICE AGREEMENT

FOR RATE SCHEDULE IT-1

agents, under or in connection with this Service Agreement

and the performance of its duties as Operator (provided that

this 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 regarding the 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.

ARTICLE XIII

WAIVER

Any waiver by either Shipper or Transporter of performance

due to the other under this Service Agreement shall be

without prejudice to the right of the waiving party to demand

future performance by the other party which is in strict

compliance with the terms of this Service Agreement.