Pacific Interstate Transmission Company

Original Volume No. 1

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

Original Sheet No. 114 Original Sheet No. 114 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

8. LIABILITY FOR NON-PERFORMANCE

8.1 Limitation of Liability: Seller shall have no liability in damages to

Buyer in respect of failure for any reason whatever, to deliver gas

pursuant to the provisions of Buyer's Service Agreement and Buyer

shall, notwithstanding any failure for any reason whatever, to deliver

gas, make payment to Seller in the amounts, in the manner and at the

times provided in Buyer's Service Agreement and in accordance with

Section 5 hereof.

8.2 Force Majeure: Neither Seller nor Buyer shall be liable in damages to

the other for any act, omission or circumstance which shall be caused,

in whole or substantial part, by force majeure. The term "force

majeure", as used herein shall mean any acts of God, strikes, lockouts

or other labor disputes or industrial disturbances, acts of the public

enemy, wars, blockades, insurrections, riots, epidemics, landslides,

lightning, earthquakes, fires, hurricanes, tornadoes, other storms,

floods, washouts or other acts of nature, civil disturbances, explo-

sions, breakage, accident or repairs to machinery or lines of pipe,

temporary or permanent failure of gas supply, inability to obtain

or unavoidable delay in obtaining pipe, materials or other equipment,

acts or binding orders of any court or other governmental authority

which have been resisted, if feasible, by reasonable and lawful means,

and any other cause, whether similar or dissimilar to any above enume-

rated, not reasonably within the control of the Person claiming relief

from liability and which such Person was or would have been unable to

prevent by the exercise of due diligence. Failure to prevent or settle

any strike or strikes or any dispute leading to a lock-out shall not be

considered to be a matter within the control of the Person claiming

relief. Force Majeure affecting the performance by either Buyer or

Seller of any of its obligations under Buyer's Service Agreement shall

not relieve the Person seeking relief from liability in respect of any

period when the continuance of its inability to perform such obliga-

tions is due to its failure to use reasonable effort to remedy the

situation in a reasonable manner and with reasonable dispatch. The

Person claiming relief from liability by reason of force majeure shall

give prompt notice to the other of the occurrence and cessation of such

force majeure. Nothing contained in this Subsection 8.2 shall in any

way limit or affect any of the provisions of Subsection 8.1 hereof.

(continued)