Mobile Bay Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 321 Original Sheet No. 321 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

negligence or in the event of its failure to use reasonable

diligence to remedy the situation and remove the cause in an

adequate manner and with all reasonable dispatch, nor shall such

causes or contingencies relieve either party of liability

otherwise unless such party shall give notice and full

particulars of the same in writing or by telegraph to the other

party as soon as possible after the occurrence relied on.

21. POSSESSION OF GAS, TITLE AND RESPONSIBILITY

21.1 Shipper warrants for itself, its successors and assigns, that it,

or any party for whom it is having gas transported, will at the

time of delivery to Transporter for transportation have good

title to or rights to transport all gas so delivered free and

clear of all liens, encumbrances and claims whatsoever. As

between Shipper and Transporter, Shipper shall be deemed to be in

control and possession of the gas and responsible for and shall

hold Transporter harmless of and from any damage or injury caused

thereby until it shall have been delivered to Transporter at the

Receipt Point(s), and while such gas is in facilities other than

facilities owned or controlled by Transporter after which

Transporter shall be deemed to be in control and possession of

such gas only while such gas is in facilities owned or controlled

by Transporter and until its delivery to Shipper, or for

Shipper's account, at the Delivery Point(s), provided, however,

that Transporter shall be responsible for delivering gas that

meets the provisions of Section 2 hereof. While in such

possession Transporter shall be responsible for and hold Shipper

harmless of and from any damage or injury caused thereby, except

for gas tendered by Shipper which fails to meet the provisions of

Section 2 of the General Terms and Conditions, which gas shall be

deemed, for purposes hereof, to remain in the possession and

control of Shipper. Transporter shall have no responsibility

with respect to any gas to be transported until it is received by

Transporter, or on account of anything which may be done, happen

or arise with respect to said gas before such receipt; and except

as provided in the immediately preceding sentence, Shipper shall