Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 39 Original Sheet No. 39 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

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

7.2 Indemnity (cont'd)

of such party's negligent or wrongful actions or

omissions in any way related to its obligations

thereunder, excluding only indemnification for

Claims to the extent caused or contributed to by

the negligence or misconduct of the person to be

indemnified. Additionally, Shipper shall

indemnify, defend and hold harmless Transporter,

its parents, affiliates, officers, directors,

employees and agents from any and all Claims

arising from: (i) liens or encumbrances on, or

adverse claims to, the gas; (ii) royalties,

overriding royalties or other payments in the

nature of royalties on the gas; and (iii) taxes,

licenses, fees or charges on the gas or on its

delivery.

8. FORCE MAJEURE

8.1 Effect of Force Majeure

If either Shipper or Transporter is rendered

unable, wholly or in part, to perform its

obligations under this Agreement, other than the

obligation to make payments due hereunder, it is

agreed that performance of the respective

obligations of Transporter and Shipper to deliver

and receive gas, so far as they are affected by

such force majeure event enumerated herein shall

be suspended from the inception of any such

inability until it is corrected but for no longer

period.