Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 05/20/1993, Docket: RS92- 70-001, Status: Effective

Original Sheet No. 28 Original Sheet No. 28 : Effective

VIII. POSSESSION OF GAS

1. As between the parties to the Gas Transportation Contract,

Transporter shall be deemed to be in control and possession of the gas

deliverable thereunder from the time it is delivered to Transporter at the

Receipt Point(s). Prior to the time gas is delivered to Transporter at the

Receipt Point(s) and after such gas is made available to or on behalf of

Shipper at the Delivery Point(s), Shipper shall be deemed to be in control and

possession thereof.

2. Shipper shall have no responsibility with respect to any gas

deliverable under the Gas Transportation Contract after it is delivered to

Transporter at the Receipt Point(s) until it is made available to or on behalf

of Shipper at the Delivery Point(s) or on account of anything which may be

done, happen or arise with respect to such gas after it is delivered to

Transporter at the Receipt Point(s) and before it is made available to or on

behalf of Shipper at the Delivery Point(s), and Transporter shall have no

responsibility with respect to such gas before it is delivered to Transporter

at the Receipt Point(s) or after it is made available to or on behalf of

Shipper at the Delivery Point(s) or on account of anything which may be done,

happen or arise with respect to such gas before it is delivered to Transporter

at the Receipt Point(s).

3. From the time gas is delivered to Transporter at the Receipt

Point(s), Transporter shall have the unqualified right to commingle such gas

with other gas in Transporter's natural gas transmission system.

IX. WARRANTY OF TITLE TO GAS

1. Except as otherwise provided herein, it is expressly

understood that title to all natural gas tendered to Transporter at the

Receipt Point(s) for transportation shall be held by Shipper. It is further

understood that Shipper will indemnify Transporter and save it harmless from

all suits, actions, debts, accounts, damages, costs, losses and expenses

arising from or out of claims of any or all persons, entities and /or agencies

to the said gas or to royalties, taxes, license fees or charges thereon.

2. Transporter hereby expressly disclaims that it has or will

have title to any gas to be transported to or on behalf of Shipper.

3. Shipper shall indemnify and save harmless Transporter and it's

officers, agents and employees from and against all liability, losses, damage,

claims, actions, suits, debts, demands, accounts, costs and expenses,

including injury or death arising from or out of or in any way connected with

the quality, use or condition of the Gas after delivery from the System for

the account of the Shipper. Transporter shall not be responsible for any

losses or shrinkage of Gas during transportation in the system, except in the

case of willful misconduct or gross negligence on the part of Transporter, and

it's officers, agents or employees.

4. Transporter and Shipper each assumes responsibility and

liability for the installation, maintenance and operation of its respective

properties and shall indemnify and save harmless the other Party from and

against all liability, losses, damages, claims, actions, suits, debts,

demands, accounts, costs and expenses, including injury or death arising from

or out of any act or accident resulting from the installation, presence,

maintenance and/or operation of the property and equipment of the indemnifying

Party.