Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 270 Original Sheet No. 270 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

liability, loss, or damage whatsoever suffered by the

non-offending party or by any third party. As used

herein the term "party" shall mean a corporation, or

partnership entity or individual and its officers,

agents, employees, and contractors; the phrase "damages

or injuries of any kind" shall include without

limitation litigation expenses, court costs, and

attorney's fees; and the phrase "tortious acts or

tortious omissions" shall include without limitation

sole or concurrent simple negligence, gross negligence,

recklessness, and intentional acts or omissions.

26. LATERAL LINE POLICY:

Nothing herein shall require Norte¤o to extend its

lines laterally or file an application for a

certificate of public convenience and necessity under

Section 7(c) of the Natural Gas Act. Further, nothing

herein shall prevent Norte¤o from contesting an

application for service filed pursuant to Section 7(a)

of the Natural Gas Act. Norte¤o reserves the right to

seek a waiver of the policy set forth herein, for good

cause shown, during an proceeding before the Commission

instituted under Section 7 of the Natural Gas Act.

27. ASSIGNMENT:

All of the rights and duties herein contained shall

inure to and be binding upon the successors and assigns

of the parties hereto, provided that no conveyance or

transfer of any interest of either party shall be

binding upon the other party until such other party has

been furnished with written notice thereof and a true

copy of such conveyance or transfer.

28. ANNUAL CHARGE ADJUSTMENT CLAUSE:

28.1 Purpose - The purpose of this clause is to permit

Norte¤o to recover the annual charges assessed by

the Commission under Section 382.202 of the

Commission's Regulations pursuant to the

provisions of the Commission's Order No. 472. For

purposes of recovering annual charges assessed

Norte¤o by the Commission, this Section