Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 03/01/2000, Docket: RP00-171-000, Status: Effective

Second Revised Sheet No. 232 Second Revised Sheet No. 232 : Effective

Superseding: First Revised Sheet No. 232

GENERAL TERMS AND CONDITIONS (Continued)

24. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION

(a) Each shipper under this Tariff warrants for itself, its successors and assigns,

that all gas delivered to Transporter for transportation shall be eligible for transportation in interstate

commerce under applicable rules, regulations or orders of the FERC. Shipper will indemnify Transporter and

save it harmless from all suits, actions, damages, costs, losses, expenses (including reasonable attorney

fees), and regulatory proceedings arising from breach of this warranty. Replacement Shippers under Section

14 (Release and Assignment of Service Rights) of the General Terms and Conditions shall be considered to be

"Shippers" for purposes of this Section, and therefore Releasors under Section 14 shall not be liable under

this section for breach of the foregoing warranty by its Replacement Shippers.

(b) Where transportation will be provided under § 311 of the National Gas Policy Act

(15 U.S.C. § 3371) and pursuant to Subpart B of Part 284 of the Commission's Regulations (18 C.F.R. §

284.101 et seq.), Shipper warrants that such transportation service is authorized to be provided within the

meaning of 18 C.F.R. Section 284.102 (d)(3), if the local distribution company or intrastate pipeline

company on whose behalf the transportation service is being provided will not have physical custody of and

transport the gas or will not hold title to the gas. Where transportation will be provided under

Transporter's blanket certificate, Shipper warrants that an interstate pipeline will receive some economic

benefit from the transaction.