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. 60 Original Sheet No. 60 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

17. CAPACITY RELEASE (Cont'd)

17.9 Indemnity: Transporter shall not be liable to any

Shipper or other person for any actions taken in

evaluating bids, or in overseeing or administering

the capacity release program described in Section 17

except as a result of Transporter's negligence or

misconduct; provided that in no event shall the

Transporter be liable for consequential or special

damages. A Releasing Shipper shall indemnify and

hold Transporter harmless from and against any and

all costs, expenses, claims, judgments and fines,

including legal fees incurred in defense of any

lawsuit or other proceeding, as a result of any

action taken by Transporter in evaluating bids, or

in overseeing or administering its capacity release

program including without limitation for refunds

made to Releasing Shipper, and except for costs,

expenses, claims, judgments and fines, including

legal fees incurred in defense of any lawsuit or

other proceeding, as a result of Transporter's

negligence or misconduct.

17.10 Refunds: Transporter shall make all refunds to

the Releasing Shipper. In no event shall

Transporter be liable to Replacement Shipper for

refunds for providing transportation service. It

shall be Releasing Shipper's sole responsibility to

flow refunds through to its Replacement Shipper.