Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 42 Original Sheet No. 42 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

8. FORCE MAJEURE (cont'd)

8.2 Nature of Force Majeure (cont'd)

(b) Acts of Government including, without

limitation, laws, orders, rules, decrees,

judgments, judicial actions, regulations, acts

of arrest or restraint, by any government (de

jure or de facto), or any agency, subdivision,

or instrumentality thereof, transportation,

handling, sale or delivery of the subject

matter of such Agreement, when any such act of

Government directly or indirectly results in

Shipper or Transporter's inability to perform

its obligations beyond its reasonable control.

(c) Acts of Civil Disorder including, without

limitation, acts of sabotage, acts of the

public enemy, acts of war (declared or

undeclared), blockades, insurrections, riots,

mass protests or demonstration, and police

action in connection with or in reaction to any

such acts of Civil Disorder, when any such act

of Civil Disorder directly or indirectly

results in Shipper or Transporter's inability

to perform its obligations beyond its

reasonable control.

(d) Acts of Industrial Disorder including, without

limitation, strikes and lockouts, when such act

of Industrial Disorder directly or indirectly

results in Shipper's or Transporter's inability

to perform its obligations; provided, that the

settlement of any labor dispute to prevent or

end any such act of Industrial Disorder shall

be within the sole discretion of the Shipper or

Transporter involved in such labor dispute.

The requirement that any inability shall be

corrected with reasonable diligence shall not

require the settlement of disputes, strikes or

lockouts which requires acceding to the demands

of any union(s) and/or employees when such

course is inadvisable in the sole discretion of

the Transporter or Shipper involved in the

labor dispute.