Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-104-001, Status: Effective

First Revised Sheet No. 150 First Revised Sheet No. 150 : Superseded

Superseding: Original Sheet No. 150

GENERAL TERMS AND CONDITIONS (Continued)

25.14 Obligations of Releasing Customer

The Releasing Customer shall continue to be responsible and

liable for its obligations under the service agreement, unless

said obligations are expressly waived by Pipeline. Without

limitation, these obligations include the following:

(i) The Releasing Customer shall continue to be liable for

all demand or reservation and other non-usage related

charges owing under its service agreement up to the

maximum rate specified in the service agreement,

including, but not limited to any demand or reservation

surcharge assessed by Pipeline for the purpose of

recovering Order No. 636 transition costs in accordance

with Section 31 of this tariff.

(ii) Except as provided in Section 25.3(v) pertaining to a

permanent release, Pipeline shall have the right to

seek performance directly from the Releasing Customer

with respect to the obligations owed by it to Pipeline

after Pipeline's attempt to seek performance from the

Replacement Customer under any new service agreement.

(iii) Each Releasing Customer agrees to protect and indemnify

Pipeline against, and to release and hold harmless

against, any loss, liability or expense (including,

without limitation, court costs and attorneys' fees)

incurred or suffered by Pipeline or such Releasing

Customer arising out of or in connection with the

provisions of this Section 25 except for losses, damages

or expenses caused solely by Pipeline's own negligence

or willful misconduct.

(iv) Pipeline shall credit the invoice of the Releasing

Customer(or secondary Releasing Customer, if

applicable) an amount each month equal to the

reservation charges or other such costs attributable to

the capacity rights released by the Releasing Customer;

provided however, Pipeline shall have the right to

reverse such credit in the next monthly invoice if the

Replacement Customer that acquires Releasing Customer's

capacity fails to pay such amounts invoiced to it

on a timely basis in accordance with Pipeline's payment

provision set forth in Section 7.