Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 237 Original Sheet No. 237 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

7.7 Notwithstanding the exercise by Norte¤o of the

options in Section 7.6 above, Shipper shall use

its best efforts to correct any quality deficiency

in the gas tendered for transportation. Further,

notwithstanding Norte¤o's election under Section

7.6 above, Shipper shall reimburse Norte¤o for all

expenses incurred in repairing damages to

Norte¤o's facilities resulting from deliveries of

gas which do not conform to the quality

specifications set forth in Section 7.3.

7.8 Norte¤o shall have the right to collect from all

Shippers delivering gas to Norte¤o at a common

Receipt Point their pro rata share, based on each

Shipper's MDQ at such Receipt Point, of the cost

of any additional gas analysis and quality control

equipment which Norte¤o, and the Shipper agree is

required to be installed at such Receipt Point to

monitor the quality of gas delivered.

7.9 Separation, Dehydration and Processing - Norte¤o

at its reasonable discretion may require that some

of or all of the gas to be transported be

processed to remove liquid and liquefiable

hydrocarbons necessary to bring the gas to the

quality specifications contained in Section 7.3

prior to delivery to Norte¤o or may require

evidence that satisfactory arrangements have been

made for the removal of liquid and liquefiable

hydrocarbons at a separation and dehydration

and/or processing plant on or connected to

Norte¤o's system. In the event separation and

dehydration and/or processing is to occur after

delivery of transportation gas to Norte¤o, Norte¤o

and Shipper shall determine a mutually agreeable

charge for the transportation of liquid and

liquefiable hydrocarbons.

7.10 Odorization - As between Norte¤o, Buyer, and

Shipper, Norte¤o shall have no obligation

whatsoever to odorize the natural gas delivered,

nor to maintain any odorant levels in such natural

gas. Notwithstanding Section 25 herein Buyer and

Shipper agree to indemnify and hold harmless

Norte¤o, its officers, agents, employees, and

contractors against any liability, loss or damage