Phillips Gas Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 65 Original Sheet No. 65 : Effective

(e) PGPL shall have no obligation to market any

capacity available to be released by Shipper.

However, when a Releasing Shipper requests that

PGPL actively market the capacity to be released,

said Shipper and PGPL shall negotiate the terms of

the marketing service to be provided by PGPL and

the marketing fee to be charged therefor. The

Releasing Shipper shall pay to PGPL said

negotiated marketing fee plus the difference

between PGPL's applicable rates under the

Releasing Shipper's Service Agreement and the

negotiated rates billed to the Replacement Shipper

or Prearranged Replacement Shipper. The

Releasing Shipper shall then remain liable to PGPL

only for fees related to reservation charges and

other fixed costs attributable to the released

quantity.

In the event that the Replacement Shipper's or

Prearranged Replacement Shipper's as-billed rate

exceeds the Releasing Shipper's applicable rate, the

difference shall be simultaneously credited by

PGPL to the Releasing Shipper's account with

PGPL. The Releasing Shipper will remain liable

only for its applicable reservation fee, and the bill

to the Releasing Shipper will reflect a simultaneous

credit to the Releasing Shipper for the reservation

fee billed to the Replacement Shipper. Any

amounts credited shall be limited to reservation

charge revenues received from the Replacement

Shipper or Prearranged Replacement Shipper

pursuant to its Service Agreement with PGPL.

(f) PGPL shall directly bill the Replacement Shipper

or Prearranged Replacement Shipper the amount

stipulated in the winning bid submitted by said

Replacement Shipper or Prearranged Replacement

Shipper for such released capacity. The

Replacement Shipper or Prearranged Replacement

Shipper shall pay such amounts directly to PGPL in

accordance with the requirements of the applicable

Rate Schedule. Releasing Shipper is liable for any

and all shortfalls in payments by all Replacement

Shippers or Prearranged Replacement Shippers.