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Original Sheet No. 244 Original Sheet No. 244 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

performance of Norte¤o's obligations with respect

to such claims under this Section 13.1, or until

Norte¤o shall have furnished bond to Buyer, in the

amount of such claim and with sureties

satisfactory to Buyer conditioned for the

protection of Buyer or Shipper with respect to

such claim.

13.2 Transportation Service - This Section 13.2 shall

apply to all transportation service unless

otherwise provided in the applicable Rate Schedule

or transportation Service Agreement. Shipper

warrants for itself, its successors and assigns,

that it will have, at the time of delivery of gas

for transportation hereunder, good title or the

good right to deliver the gas. Norte¤o warrants

for itself, its successors and assigns, that the

gas it delivers hereunder shall be free and clear

of all liens, encumbrances and claims whatsoever,

that it will have at such time of delivery good

title or the good right to deliver the gas. Buyer

or Shipper and Norte¤o represent and warrant that

each will indemnify the other and save it harmless

from all suits, actions, debts, accounts, damages,

costs, losses, and expenses arising from or out of

any adverse claims of any and all persons to said

gas and/or to royalties, taxes, license fees, or

charges thereon which are applicable for such

delivery of gas and that each will indemnify the

other and save it harmless from all taxes or

assessments which may be levied and assessed upon

such delivery and which are by law payable by and

the obligation of the party making such delivery.

If Shipper's title or right to deliver gas to be

transported is questioned or involved in any

action Shipper shall not qualify for or shall be

ineligible to continue to receive service until

such time as Shipper's title or right to deliver

is free from question; provided, however, Norte¤o

shall allow Shipper to qualify for or continue

receiving service under this Tariff if Shipper

furnishes a bond in such amount and with sureties

satisfactory to Norte¤o conditioned for the

protection of Norte¤o with respect to such

question or action. Title to gas delivered for