East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/03/1998, Docket: RP98-367-000, Status: Effective

First Revised Sheet No. 269 First Revised Sheet No. 269 : Superseded

Superseding: Substitute Original Sheet No. 269

SYSTEM LICENSE AGREEMENT (continued)

ARTICLE IV - RELEASE AND DISCLAIMER OF LIABILITY/INDEMNIFICATION

4.1 Except for the negligence, bad faith, fraud or willful misconduct of Pipeline,

Pipeline expressly disclaims any and all liability for loss or damage to

Subscriber or to any third parties associated with Subscriber's use of the System,

including but not limited to any loss or damage resulting from any one or more of

the following: (1) Subscriber's negligent or otherwise improper use of the

System; (2) any unauthorized use of the System, by Subscriber, Subscriber's

employees or former employees; (3) any acts of God or force majeure, as defined in

Article X of Transporter's General Terms and Conditions, and also including

electrical shortage and/or power outages; (4) any defects in computer software or

hardware or defective programming; (5) any interruption in or malfunction of

electronic communication or transmission. Such causes or contingencies affecting

the performance of this Agreement shall not relieve Pipeline of liability in the

event (a) it fails to use due diligence to remedy the situation and remove the

causes or contingencies affecting performance of this Agreement or (b) it fails to

give Subscriber notice and full particulars of the same in writing or by telegraph

or facsimile as soon as possible after the event or situation arises.

4.2 Subscriber agrees to protect, defend, indemnify, and hold harmless Pipeline

against any and all loss, costs, damages, and expenses of any nature whatsoever

(including court costs and reasonable attorney's fees), resulting from or

otherwise related to any claim, demand, or action asserted against Pipeline,

arising from or in any manner directly or indirectly connected with Subscriber's

use of the System except for claims involving rights in the System or those

involving the negligence, bad faith, fraud or willful misconduct of Pipeline.