Carolina Gas Transmission Corporation

Original Volume No. 1

Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 137 Original Sheet No. 137 : Effective

(b) If Shipper injects, transports, or delivers non-conforming

gas to Pipeline, Shipper will be responsible for, and shall

indemnify, and hold Pipeline, its subsidiaries, and

affiliates and their directors, officers, employees, and

agents free and harmless from any and all suits, regulatory

proceedings, actions, claims (including attorneys’ fees and

court costs), debts, accounts, damages (including punitive

damages), costs, losses, expenses, and injuries (property,

environmental damage, and personal injury, including death)

to Pipeline or third persons as a result of the non-

conforming gas. Except to the extent that claims, damages,

and injuries result from Pipeline’s gross negligence or

willful misconduct, Shipper must reimburse Pipeline for any

costs, liabilities, losses, and expenses incurred by

Pipeline as a result of Shipper’s non-compliance,

including, but not limited to, costs associated with

processing such non-conforming gas by any person as deemed

necessary by Pipeline.

6.6 Notwithstanding the requirements in this Section 6, Pipeline may

allow Shipper to tender for service or cause to be tendered,

pursuant to a Service Agreement under Pipeline’s rate schedules,

gas that when injected into Pipeline’s system does not meet the

quality specifications in this Section 6; provided, however, that

Pipeline’s acceptance of such gas shall not impact adversely

Pipeline’s system facilities or operations.

6.7 Pipeline may commingle gas transported hereunder with gas from

other sources, and treat and handle such gas as its own. Shipper

and Pipeline recognize that gas delivered at the Delivery Point

may not be the same molecules as those received at the Receipt

Point. However, the quantities of gas delivered hereunder at the

Delivery Point(s) shall be thermally equivalent to the quantities

of gas received at the Receipt Point(s) for transportation, less

FRQ.

6.8 Odorization.

(a) Pipeline and Shipper may agree from time to time to allow

Shipper to deliver odorized gas to Pipeline. Pipeline

shall not be obligated to receive such odorized gas from

Shipper when such receipt may, in Pipeline’s sole

discretion, be detrimental to Pipeline’s system operations.