Sg Resources Mississippi, L.L.C

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 144 Original Sheet No. 144 : Pending

GENERAL TERMS AND CONDITIONS

(Continued)

12. TITLE AND RISK OF LOSS

12.1 Customer warrants for itself, its successors and

assigns, that it will have at the time of delivery of Gas for

injection, storage, parking, wheeling or loan repayment hereunder

either good title to or the right to have the Gas transported or

stored. Customer warrants for itself, its successors and assigns,

that the Gas it delivers hereunder shall be free and clear of all

liens, encumbrances, or claims whatsoever; and that it will

indemnify SGRM and save it harmless from all claims, suits,

actions, damages, costs and expenses arising directly or

indirectly from or with respect to the title and/or right to Gas

tendered to SGRM hereunder. Title to Gas transported or stored

under all Rate Schedules other than Rate Schedule IL and Gas

loaned under Rate Schedule IB, shall remain at all times with

Customer. Title to gas loaned under Rate Schedules IL and IB

shall pass from SGRM to Customer when loaned gas is delivered for

Customer's account to a Point of Delivery and title shall pass

from Customer to SGRM when loaned gas is returned by Customer to a

Point of Receipt.

12.2 As between Customer and SGRM, (x) Customer shall be

deemed to be in control and possession of the Gas prior to

delivery to SGRM for wheeling, parking, storage or injection at

the Point(s) of Receipt and after redelivery by SGRM to Customer

at the Point(s) of Delivery, and shall indemnify and hold SGRM

harmless from any damage or injury caused thereby, and (y) SGRM

shall be deemed to be in control and possession of the Gas after

the receipt of Gas at the Point(s) of Receipt and until SGRM's

redelivery of an equivalent quantity of Gas to Customer at the

Point(s) of Delivery, and shall indemnify and hold Customer

harmless from any damage or injury caused thereby, except for

damages and injuries caused by the sole negligence of Customer.

Notwithstanding anything to the contrary set forth in this Section

12.2, the risk of loss of any quantity of Gas wheeled through,

injected into, parked or stored in and withdrawn from the SGRM

storage facilities shall remain with Customer, and SGRM shall not

be liable to Customer for any loss of Gas, except as may be the

consequence of the intentional or negligent acts or omissions of

SGRM. Any losses of Gas, unless resulting from the intentional or

negligent acts or omissions of SGRM, shall be apportioned among

and shared proportionally by all Customers under Rate Schedules

FSS, SFS, ISS, IP and IB on the basis of the percentage which each

Customer's Storage Inventory as of the Day immediately preceding

the Day on which a loss occurs bore to the total amount of Gas in

all Customers' Storage Inventories on such Day.

12.3 SGRM will not grant, or take any action that would

result in the imposition of, any security interest (other than a

security interest as may be permitted under the Creditworthiness

and other express provisions of this FERC Gas Tariff) in, or other

encumbrance of, its Customers' title to or interest in Gas while

in SGRM's possession.