Pacific Interstate Offshore Company

Second Revised Volume No. 1

Effective Date: 01/01/1994, Docket: RS92- 73-001, Status: Effective

Original Sheet No. 38 Original Sheet No. 38 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

7. POSSESSION OF AND RESPONSIBILITY FOR GAS (cont'd)

7.1 Possession and Responsibility (cont'd)

Whichever of Transporter or Shipper is deemed to be

in control and possession of the gas will be

responsible for and shall indemnify the other party

with respect to any losses, injuries, claims,

liabilities or damages caused thereby and occurring

while the gas is in its possession, unless caused by

excessive pressure upon delivery for which the

delivering party shall remain responsible.

7.2 Indemnity

To the fullest extent permitted by law, Transporter

and Shipper shall each indemnify, defend, and hold

harmless the other, its parents, affiliates,

officers, directors, employees and agents from and

against any and all loss, costs (including

reasonable attorneys fees), fines and penalties,

damage, injury, liability, and claims (collectively

"Claims") for: (i) injury to or death of persons

(including employees of Transporter or Shipper),

(ii) loss of, damage to or destruction of tangible

property, and (iii) violation of law, resulting

directly or indirectly from such indemnifying

party's performance of, or failure to perform, its

obligations under the Transportation Service

Agreement and these General Terms and Conditions

(including, without limitation, the quality and

pressure of the gas stream delivered hereunder and

the installation, maintenance and operation of

property, equipment and facilities) or any other