Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 68 Original Sheet No. 68 : Effective

Joseph A. Vaszily, Vice President

GENERAL TERMS AND CONDITIONS

(continued)

14. CAPACITY RELEASE (continued)

shall be entitled to interest from Releasing Customer in

accordance with Section 11 of these General Terms and

Conditions, to the extent KLNG does not recover such Fixed

Charges from the Replacement Customer on the due date. To the

extent Releasing Customer makes payment in satisfaction of any

such obligations it shall be subrogated to KLNG's rights to

collect such amounts from the defaulting Customer under the

New Service Agreement.

(d) KLNG may rely upon and shall be protected in acting or

refraining from acting upon any resolution, certificate,

statement, instrument, notice, or other document believed by

it to be genuine and to have been signed or presented by the

proper party or parties.

(e) KLNG shall not be bound to make any investigation into the

facts or matters stated in any resolution, certificate,

statement, instrument, notice, or other document, but KLNG, in

its reasonable discretion, may make such further inquiry or

investigation into such facts or matters as it may see fit.

(f) Except as expressly set forth in Section 14.7(a), each

Releasing Customer agrees to protect and indemnify KLNG

against, and to release and hold KLNG harmless against, any

loss, liability or expense (including, without limitation,

court costs and attorneys' fees) incurred or suffered by KLNG

or such Releasing Customer arising out of or in connection

with the provisions of this Section 14 (including, without

limitation, KLNG's performance or failure of performance of

any of its obligations under this Section 14).

(g) Without in any way limiting the other provisions of this

Section 14, each Approved Bidder, by delivery of a bid to

KLNG, shall be deemed to have agreed:

(i) to the provisions of (d) and (e) above;

(ii)to protect and indemnify KLNG against, and to release and

hold KLNG harmless against, any loss, liability or expense

(including, without limitation, court costs and attorneys'

fees) incurred or suffered by KLNG or such Approved Bidder

arising out of or in connection with the