Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 85 Original Sheet No. 85 : Effective

Superseding: Original Sheet No. 85

GENERAL TERMS AND CONDITIONS

(Continued)

10.5 (Continued)

Shipper or Acquiring

Shipper(s) may sustain or be liable for,

and will hold CIPCO harmless from any and

all damages, claims, suits, actions, or

proceedings, either threatened or

initiated, as a result of the recall of

capacity or the failure to give proper

notice to CIPCO and the Acquiring Shipper

of the recall by the Releasing Shipper,

except for losses, damages, or expenses

caused solely by CIPCO's own negligence or

willful misconduct.

(c) Acquiring Shipper Obligations

Any Acquiring Shipper receiving

capacity under any release of capacity under

this Section 10 must execute a separate Service

Agreement with CIPCO for the rate and term

specified by the Releasing Shipper and must

satisfy all requirements of CIPCO's FERC Gas

Tariff and Rate Schedule under which service is

taken, including but not limited to the billing,

payment, and operational provisions of the

General Terms and Conditions of CIPCO's FERC Gas

Tariff. The Acquiring Shipper must return the

executed Service Agreement to CIPCO within five

(5) business days after receipt of such Service

Agreement from CIPCO. The Acquiring Shipper is

liable to CIPCO for all charges specified in the

Service Agreement.

(d) CIPCO Obligations

For any permanent or temporary release

of capacity, CIPCO shall bill Acquiring Shipper

for all amounts specified in the Service

Agreement between CIPCO and Acquiring Shipper.

For any month, CIPCO shall bill the

Releasing Shipper for all amounts specified in

the Service Agreement between CIPCO and the

Releasing Shipper less an amount equal to the

reservation charges,