Phillips Gas Pipeline Company

First Revised Volume No. 1

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Effective Date: / / , Docket: RS92- 47-001, Status: Effective

Original Sheet No. 57 Original Sheet No. 57 : Superseded

the respective successors and assigns of the parties

thereto; however, nothing contained herein shall prevent

either party from pledging, mortgaging or assigning its

rights as security for its indebtedness and either party

may assign to the pledgee or mortgagee (or to a trustee

for the holder of such indebtedness) any money due or

to become due under any service agreement.

19.2 PGPL's Policy on Sales Laterals: PGPL shall not be

required to build or contribute to the cost of building

any sales lateral pipelines to resale customers.

Nothing in this policy statement shall require PGPL to

file an application for a Certificate of Public

Convenience and Necessity under Section 7(c) of the

Natural Gas Act. Nothing in this policy statement,

further, shall prevent PGPL from contesting an

application for service filed pursuant to Section 7(a).

PGPL reserves the right to seek a waiver of the policy

set forth herein, for good cause shown, during any

proceeding before the Commission instituted under

Section 7 of the Natural Gas Act.

20. SERVICE AGREEMENT

20.1 Form: Shipper shall enter into a contract with PGPL

under PGPL's appropriate standard form of service

agreement.

20.2 Term: The term of the service agreement shall be

agreed upon between Shipper and PGPL at the time of

the execution thereof.