Quest Pipelines (Kpc)

Second Revised Volume No. 1

Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 184 Original Sheet No. 184 : Effective

GENERAL TERMS AND CONDITIONS (continued)

20. TERMINATION FOR DEFAULT

If either KPC or Shipper shall fail to perform any of the covenants or

obligations imposed upon it or them under and by virtue of a Service

Agreement hereunder, which obligations have not been suspended pursuant

to Section 19 herein, then in such event the other party may at its

option terminate such Service Agreement by proceeding as follows: The

party not in default shall cause a written notice to be served on the

party in default stating specifically the cause for terminating the

Service Agreement and declaring it to be the intention of the party

giving the notice to terminate the same; thereupon the party in default

shall have Thirty (30) Days after the service of the aforesaid notice in

which to remedy or remove the cause or causes stated in the notice for

terminating the agreement, and if within said period of Thirty (30) Days

the party in default does so remove and remedy said cause or causes and

fully indemnify the party not in default for any and all consequences of

such breach, by a good and sufficient indemnity bond or otherwise, then

such notice shall be withdrawn and the Service Agreement shall continue

in full force and effect. In case the party in default does not so

remedy and remove the cause or causes or does not so indemnify the party

giving the notice for any and all consequences of such breach, within

said period of Thirty (30) Days, then, after any necessary authorization

by regulatory bodies having jurisdiction, the Service Agreement shall

become null and void from and after the expiration of said period,

provided that notice of termination has not been withdrawn prior

thereto. Any cancellation of such Service Agreement pursuant to the

provisions of this paragraph shall be without prejudice to the right of

KPC to collect any amounts then due to it prior to the time of

cancellation, and shall be without prejudice to the obligation of KPC

and Shipper to balance receipts and deliveries of Gas pursuant to the

Service Agreement, and without waiver of any remedy to which the party

not in default may be entitled for violations of such Service Agreement.