Phillips Gas Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 47-003, Status: Effective

Original Sheet No. 40 Original Sheet No. 40 : Effective

11. LIABILITY OF PARTIES

PGPL and Shipper each assume full responsibility and liability for the

maintenance and operation of its respective properties and shall

indemnify and save harmless the other party from all liability and

expense on account of any and all damage, claims or actions, including

injury to and death of persons, arising from any act or accident in

connection with the installation, presence, maintenance and operation

of the property and equipment of the indemnifying party; provided

however, that neither party agrees to indemnify the other party for the

negligence of the other party, its agents, servants or employees.

12. NOMINATION, NOTIFICATION AND SCHEDULING

12.1 Shippers Nomination and Notification Requirements: Shipper

shall furnish or cause to be furnished to PGPL schedules of

throughput requirements, by individual point of receipt and

delivery.

(a) Monthly Nomination: On or before the twenty-fifth

(25th) day of the month preceding each month in which

gas is to be tendered by Shipper to PGPL, Shipper shall

furnish to PGPL a written nomination schedule showing

the estimated daily quantity of gas Shipper desires

PGPL to transport during the month. Should Shipper

fail to provide this nomination on or before the first day

of the month, PGPL may deem the Shipper's

nomination to be zero (0). PGPL may refuse to receive

or redeliver any gas not timely and properly scheduled.

Shipper shall indemnify and hold PGPL harmless from

any liability to Shipper or any other person as a direct

or indirect consequence of such refusal.

(b) Daily Notification: Shipper shall give PGPL at least

eight (8) hours notice prior to the proposed change of

a daily quantity from that set forth in subparagraph (a).