Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 04/01/1997, Docket: RP97- 18-003, Status: Effective

Second Revised Sheet No. 71 Second Revised Sheet No. 71 : Effective

Superseding: Substitute First Revised Sheet No. 71

GENERAL TERMS AND CONDITIONS

(continued)

16. TERMINATION

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16.1 Termination For Default

a) Shippers Receiving Service under the Capacity Release Program:

Transporter may terminate Shipper's Transportation Service

Agreement (Form D) for non-payment in accordance with Section

30.8(f) of these General Terms and Conditions.

b) All other Shippers: If either Transporter or Shipper shall fail

to perform any of the covenants or obligations imposed upon it

or them under and by virtue of a Service Agreement hereunder,

then in such event the other party may, at its option, terminate

such agreement by proceeding as follows: The party not in

default shall cause a written notice to be served on the party

in default stating specifically the cause for terminating the

agreement and declaring it to be the intention of the party

giving the notice to terminate the same; thereupon, the party in

default shall have thirty (30) days after the service of the

aforesaid notice in which to remedy or remove the cause or

causes stated in the notice for terminating the agreement, and

if within said period of thirty (30) days the party in default

does so remove and remedy said cause or causes and fully

indemnify the party not in default for any and all consequences

of such breach, by a good and sufficient indemnity bond or

otherwise, then such notice shall be withdrawn and the agreement

shall continue in full force and effect. In case the party in

default does not so remedy and remove the cause or causes or

does not so indemnify the party giving the notice for any and

all consequences of such breach within said period of thirty

(30) days, then, after any necessary authorization by regulatory

bodies having jurisdiction, the agreement shall become null and

void from and after the expiration of said period, provided that

notice of termination has not been withdrawn prior thereto. Any

cancellation of such agreement pursuant to the provisions of

this paragraph shall be without prejudice to the right of

Transporter to collect any amounts then due to it for natural

gas delivered prior to the time of cancellation, and to the

right of a Shipper to receive any gas for which it has paid but

has not received, although entitled thereto, prior to the time

of cancellation, and for all Shippers this provision shall be

without waiver of any remedy to which the party not in default

may be entitled for violations of such agreement.