Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 3501 Original Sheet No. 3501 GENERAL TERMS AND CONDITIONS Section 23 (Cont'd) (d) Transporter shall have the right to commingle the gas and injected liquid hydrocarbons delivered by Customer to Transporter with gas and injected liquid hydrocarbons delivered to Transporter by others, and Transporter shall likewise have the right similarly to commingle and transport gas and injected liquid hydrocarbons for others; and (e) Title to the associated liquid hydrocarbons may be retained by Customer or Customer's supplier(s). Transporter shall be responsible for any loss of such liquids due to Transporter's sole negligence, if Customer or Customer's supplier(s) have retained title to such liquid hydrocarbons. 23.4 Indemnification: Customer agrees to indemnify and save Transporter harmless from all losses, damages, and expenses arising out of or incident to the transportation and handling of such liquids and liquefiables prior to delivery to Transporter of liquids or liquefiables hereunder and after redelivery of such liquids or liquefiables, Transporter agrees to indemnify and save Customer and its affiliates harmless from all losses, damages, and expenses arising out of or incident to the transportation of liquids and liquefiables after delivery to Transporter and before redelivery. 23.5 Reimbursement: Customer agrees that if the Commission or any other regulatory body having jurisdiction determines directly or indirectly, (1) that reimbursement to Transporter should be made for the use of Transporter's facilities for the transportation of liquids or liquefiables, or (2) that any portion of Transporter's costs incurred (including a reasonable return) for facilities utilized in such transportation should be eliminated from Transporter's cost of service, Customer shall reimburse or pay, or cause to be reimbursed or paid, Transporter for such excluded costs effective as of the date such reimbursement requirement or cost allocation is effective, with the view that Transporter will be kept completely whole with respect to such costs. Customer will reimburse Transporter for any taxes or similar assessment levied against Transporter's transportation and separation of liquids or liquefiables for Customer. (a) Subject to Commission action that may adjust the rates described above, the initial rate for liquid transportation shall be, for liquids from wells connected to the system as of December 31, 1981, 55 cents per barrel, and for liquids from wells connected to the system on or after January 1, 1982, one dollar and two and one-half cents ($1.025) per barrel. The rate for short-haul transportation (a distance of twenty (20) miles or less) of liquids from wells connected to the system as of December 31, 1981, shall be 11 cents per barrel, and the rate for short- haul transportation of liquids from wells connected to the system on or after January 1, 1982, shall be twenty percent (20%) of the one dollar and two and one-half cents ($1.025) per barrel rate stated above.