W T G Hugoton, LP

Original Volume No. 1

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Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective

Original Sheet No. 256 Original Sheet No. 256 : Effective

 

GENERAL TERMS AND CONDITIONS

 

38. WARRANTY

 

In the event WTG Hugoton does not have title to the gas being

transported, Shipper warrants that Shipper at the time of delivery of gas to

WTG Hugoton will have good title to all such gas pursuant to contractual

arrangements entered into prior to commencement of service, and that it will

deliver, or cause to be delivered, such gas free from all liens, encumbrances

and claims whatsoever; provided, however, that pursuant to Section 37 of

these General Terms and Conditions, Shipper or its designee may elect to

retain the right to process such gas for the removal of liquids and

liquefiable hydrocarbons, but in such instances Shipper warrants that it or

its designee has good right to do so pursuant to contractual arrangements

entered into prior to commencement of service. Shipper will indemnify WTG

Hugoton and save it harmless from all suits, actions, debts, liabilities,

accounts, damages, costs, losses, and expenses (including attorneys' fees and

court costs) arising out of the adverse claim of any person or persons

claiming ownership of any interest in the gas or for any taxes, licenses,

royalties, fees, or charges which are applicable prior to the time of delivery

of such gas to WTG Hugoton. In the event any adverse claim of any character

whatsoever is asserted with respect to any of said gas, WTG Hugoton shall have

the right to suspend service under the Service Agreement until such time as

Shipper's title or right to deliver is free from question.

 

39. CREDITWORTHINESS

 

39.1 Prior to execution of a Service Agreement, providing for service under

any Rate Schedule, a Shipper or a prospective shipper (hereinafter in this

section jointly referred to as "Shipper") shall be required to establish

creditworthiness with WTG Hugoton. WTG Hugoton shall not be required to: (a)

execute a Service Agreement providing for service under the applicable Rate

Schedule on behalf of any Shipper who fails to meet WTG Hugoton's standards

for creditworthiness; or (b) initiate service to a Shipper who fails to meet

WTG Hugoton's standards for creditworthiness; or (c) continue transportation

service on behalf of any Shipper who is or has become insolvent or who, at WTG

Hugoton's request, fails within a reasonable period to demonstrate

creditworthiness.