Pacific Interstate Transmission Company

Original Volume No. 1

Effective Date: 10/01/1981, Docket: GT97- 67-000, Status: Effective

Original Sheet No. 113 Original Sheet No. 113 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

6. POSSESSION OF AND RESPONSIBILITY FOR GAS

6.1 Possession of Gas: Seller shall be deemed to own the gas, and a Trans-

porter shall be deemed to be in control and possession thereof while in

a Transporter's pipeline system, until it shall have been delivered to

Buyer at the point of delivery, at which time ownership, control, and

possession thereof shall be in Buyer.

6.2 Responsibility: Buyer shall have no responsibility with respect to any

gas until it is delivered to Buyer, or an account of anything done, oc-

curring or arising with respect to said gas before delivery, and Seller

shall have no responsibility with respect to gas after it is delivered

to Buyer, or on account of anything done, occurring or arising with

respect to said gas after delivery to Buyer.

7. INDEMNIFICATION

Each of Seller and Buyer shall indemnify and save harmless the other from

all liability, damages, costs, losses and charges of every character re-

sulting from any claim made against such other by any Person for injury or

death to Persons, or damage to property, in any way connected with the pro-

perty and equipment of the indemnitor or the presence of gas deemed hereby

to be the responsibility of the indemnitor, unless such injury, death or

damage is caused by the negligence or wilful misconduct of the indemnitee or

any Person for whose actions the indemnitee is responsible in law; provided

that neither Seller nor Buyer shall be liable to indemnify the other unless

the Person requesting indemnification shall have promptly notified the other

in writing of any claim, suit or action for or in respect of which indemni-

fication is to be claimed. The Person receiving such notification shall be

entitled to participate in any such suit or action, and, to the extent that

it may wish, assume the defense thereof with counsel who shall be to the

reasonable satisfaction of the Person requesting indemnification, and after

notice from the indemnitor to the indemnitee of its election so as to assume

the defense thereof, the indemnitor will not be liable to the indemnitee for

any legal or other expenses incurred by the indemnitee in connection with

the defense thereof. An indemnitor shall not be liable to indemnify an

indemnitee on account of any settlement of any claim, suit or action

effected without the consent of such indemnitor. Claims made under this

Section 7 with respect to injury or death to Persons or damage to property

occurring during the term of a Buyer's Service Agreement shall survive the

termination thereof.

Seller covenants that it will indemnify and save Buyer harmless from and

against any and all suits, actions, causes of action, claims and demands

arising from or out of any adverse claims by third parties claiming owner-

ship of or an interest in the gas tendered for sale hereunder.

(continued)