K O Transmission Company

Original Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-339-000, Status: Effective

First Revised Sheet No. 129 First Revised Sheet No. 129 : Effective

Superseding: Original Sheet No. 129

GENERAL TERMS AND CONDITIONS (continued)

22. Warranty of Eligibility for Transportation

Each Shipper under this Tariff warrants for itself, its successors and assigns,

that all gas delivered to Transporter for transportation shall be eligible for

transportation in interstate commerce under applicable rules, regulations or

orders of the Commission. Shipper will indemnify Transporter and save it

harmless from all suits, actions, damages, costs, losses, expenses (including

reasonable attorney fees), and regulatory proceedings arising from breach of

this warranty. Replacement Shippers under Section 4 (Release and

Assignment of Service Rights) of the General Terms and Conditions shall be

considered to be "Shippers" for purposes of this Section, and therefore

Releasors under Section 4 shall not be liable under this Section for breach of

the foregoing warranty by its Replacement Shippers.

Where transportation will be provided under Section 311 of the Natural Gas

Policy Act (15 U.S.C. 3371) and pursuant to Subpart B of Part 284 of the

Commission's Regulations (18 C.F.R. Part 284.101 et. seq.), Shipper warrants

that such transportation service is authorized to be provided within the

meaning of 18 C.F.R. Section 284.102 (d)(3), if the local distribution company or

intrastate pipeline company on whose behalf the transportation service is being

provided will not have physical custody of and transport the gas or will not hold

title to the gas. Where transportation will be provided under Transporter's

blanket certificate and pursuant to Section 222 of Subpart G of Part 284 of the

Commission's Regulations (18 C.F.R. Part 284.222), Shipper warrants that an

interstate pipeline will receive some benefit from the transaction.