Carolina Gas Transmission Corporation

Original Volume No. 1

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

Original Sheet No. 332 Original Sheet No. 332 : Effective

3.4 If service under this Service Agreement is being provided pursuant to

Subpart B of Part 284 of the Commission’s regulation, Shipper warrants

that the transportation service hereunder meets the requirements set out

in Subpart B of Part 284 of the Commission’s regulations and qualifies

for service under Rate Schedule IT. A certification from the party on

whose behalf Pipeline will render the transportation services hereunder

is attached as Exhibit B hereto. Shipper will indemnify, save, 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, injuries, or expenses arising from or out of breach of

such warranty.

ARTICLE IV

ASSIGNMENTS

4.1 Any entity that succeeds by purchase, merger, or consolidation to the

properties, substantially as an entirety, of Shipper or of Pipeline will

be entitled to the rights and will be subject to the obligations of its

predecessor in title under this Service Agreement. Either Shipper or

Pipeline may assign or pledge this Service Agreement under the provisions

of any mortgage, deed of trust, indenture, bank credit agreement,

receivable sale, or similar instrument that it has executed or may

execute hereafter without relieving itself of its obligations under this

Service Agreement. Except as set forth above, neither Shipper nor

Pipeline shall assign this Service Agreement or any of its rights

hereunder without the prior written consent of the other party; provided,

however, that neither Shipper nor Pipeline shall be released from its

obligations hereunder without the written consent of the other.

ARTICLE V

LIMITATIONS ON LIABILITY

5.1 Shipper acknowledges and agrees that: (a) Shipper shall have no recourse

against Pipeline’s parent or other affiliates with respect to Pipeline’s

obligations under this Service Agreement and that its sole recourse shall

be against the assets and revenues of Pipeline, irrespective of any

failure to comply with applicable law or any provision of this Service

Agreement; (b) no claim shall be made against Pipeline’s parent or other

affiliates under or in connection with this Service Agreement; and (c)

this representation is made expressly for the benefit of Pipeline’s

parent and other affiliates.