Blue Lake Gas Storage Company

First Revised Volume No. 1

Effective Date: 11/01/2007, Docket: RP08- 17-000, Status: Effective

First Revised Sheet No. 150 First Revised Sheet No. 150 : Effective

Superseding: Original Sheet No. 150

GENERAL TERMS AND CONDITIONS

(Continued)

indemnify and save Seller harmless from all suits, actions,

debts, accounts, damages, costs, losses, and expenses arising

from or out of adverse claims of any and all persons to said Gas

and/or to royalties, taxes, license fees, or charges thereon

which are directly applicable to such delivery of Gas and that it

will indemnify and save Seller harmless from all taxes or

assessments which may be directly levied and assessed upon such

delivery and which are by law payable and the obligation of the

party making such delivery.

11.3 Waivers. No waiver by either Seller or Customer of any one or

more defaults by the other in the performance of any provisions

hereunder shall operate or be construed as a waiver of any

future default or defaults, whether of a like or a different

character. Seller shall retain the right to waive, with respect

to Customer, any Section of these General Terms and Conditions

and Rate Schedules FS and IS, if Seller does so in a non-

discriminatory manner.

11.4 Assignments. Any company which shall succeed by purchase,

merger or consolidation to the properties, substantially as an

entirety, of Customer or of Seller, as the case may be, shall if

eligible be entitled to the rights and shall be subject to the

obligations of its predecessor in title under the Service

Agreement(s) between Seller and Customer. Either Seller or

Customer may assign any of its rights or obligations under its

Service Agreement(s) to a financially responsible corporation

with which it is affiliated at the time of such assignment.

Furthermore, Seller may, as security for its indebtedness,

assign, mortgage or pledge any of its rights or obligations

under its Service Agreement(s), including its rights to receive

payments, to any other entity, and Customer will execute any

consent agreement with such entity and provide such certificates

and other documents as Seller may reasonably request in

connection with any such assignment. Customer also may assign

or pledge its Service Agreement(s) under the provisions of any

mortgage, deed of trust, indenture or similar instrument which

it has executed or may hereafter execute covering substantially

all of its properties. Otherwise, except as provided in Section

8 of Rate Schedule FS neither party shall assign its Service

Agreement(s) or any of its rights thereunder unless it first

shall have obtained the consent thereto in writing of the other

party.