Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: RP98-239-000, Status: Effective

First Revised Sheet No. 64 First Revised Sheet No. 64 : Effective

Superseding: Original Sheet No. 64

GENERAL TERMS AND CONDITIONS

(Continued)

 

8. LIABILITY OF SHIPPER AND COMPANY

 

8.1 Control of Gas:

 

For the purpose of determining the liability of COMPANY and

SHIPPER, respectively, SHIPPER shall be deemed to be in exclusive

control and possession of the gas to be transported until such gas

has been actually received by COMPANY at the Receipt Point, while

the gas is in SHIPPER's custody (or the custody of another on its

behalf) for processing in accordance with the provisions of the

rate schedules, and after the gas has been delivered to the

account of SHIPPER hereunder by COMPANY at the Delivery Point.

COMPANY shall be deemed to be in exclusive control and possession

of the gas transported hereunder only while it is in COMPANY's

facilities. In the event COMPANY has reason to believe that there

is a loss of gas between the point of measurement and the point of

receipt, SHIPPER shall upon written request from COMPANY provide

COMPANY with information as shall be reasonably required to

quantify such loss, and shipper shall reimburse COMPANY therefor.

Title to that share of gas deemed to be used as compressor fuel,

company-use, vented, lost or unaccounted-for gas hereunder shall

pass to COMPANY at the Receipt Point.

 

8.2 Responsibility and Liability:

 

The party deemed to be in control and possession of the gas to be

transported shall be responsible for and shall indemnify the other

party with respect to any losses, claims, liabilities or damages,

specifically including any direct or indirect damages or

liabilities incurred by COMPANY with respect to the Pascagoula

processing plant connected to COMPANY's system, but the parties'

obligation to each other shall not extend to consequential,

punitive, or special damages, including loss of profits and

business interruption arising therefrom.