Mid Louisiana Gas Company

Third Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 20-006, Status: Effective

Substitute Original Sheet No. 164 Substitute Original Sheet No. 164 : Effective

Superseding: ORIGINAL SHEET NO. 164

17. PENALTIES

17.1 (a) In addition to the penalties set forth below, a Customer

shall be liable for and shall be required to reimburse

Pipeline for all penalties, charges and fees which

Pipeline is required to pay to other pipelines as a

consequence of such Customer's actions. The charges

under this Section 17.1(a) shall be flowed through to

such Customers on an as-billed basis.

(b) A Customer shall indemnify Pipeline from and against any

and all losses, damages, or expenses of every kind and

character which Pipeline or another Customer may suffer,

sustain, or be liable for and shall hold Pipeline

harmless from and against any and all damages, claims,

suits, actions, or proceedings whatsoever threatened or

initiated as a result of any action, inaction, or

omission by the indemnifying Customer which results in

the assessment of a penalty under this Section 17.

(c) Pipeline shall have the option to waive or reduce, on a

non-discriminatory basis, the penalties set forth in

this Section 17. Pipeline shall waive any penalties

attributable to the actions, inactions, or omissions of

Pipeline or third parties under the control of Pipeline.

(d) Any penalty revenue collected pursuant to this Section

17 by Pipeline from an affiliated entity shall be

credited to Pipeline's other Customers.

(e) In the event Customer's actions would subject Customer

to more than one (1) penalty provision under this