Stingray Pipeline Company

Third Revised Volume No. 1

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Effective Date: 07/01/2002, Docket: RP00-620-002, Status: Effective

Second Revised Sheet No. 131 Second Revised Sheet No. 131 : Effective

Superseding: First Revised Sheet No. 131

GENERAL TERMS AND CONDITIONS

Stingray's ability to provide deliveries and

services under all Rate Schedules. A failure

by one or more Shippers to comply with an OFO

may affect Stingray's ability to provide such

deliveries and services. In such event and in

addition to other provisions hereof and not in

lieu of any other remedies available in law or

at equity, Stingray will, except to the extent

Stingray's inability to provide such deliveries

and services arose from Stingray's gross

negligence, or undue discrimination or

intentional or willful misconduct, have no

liability or responsibility for its inability

to provide deliveries and services and

Shipper(s), shall indemnify and hold Stingray

harmless from any claims brought by a third

party against Stingray arising from such

failure except that Shipper(s) shall not be

responsible for any incidental, consequential,

punitive or special damages, including lost

profits resulting therefrom.

10.6 Waiver:

In recognition of the fact that this Section 10 is

intended to promote conscientious operations by the

Shipper such that service to other Shippers is not

impaired in any way, Stingray may waive any Violation

Charges incurred by Shipper if Stingray determines, in

its reasonable judgment, that Shipper was conducting

its operations in a responsible manner at the time the

Violation Charges were incurred and that Shipper's

conduct did not impair service to another Shipper.

Stingray must grant waivers under this section on a non-

discriminatory basis, but the waiver of any Violation

Charges shall not constitute an automatic waiver of any

future Violation Charges. Stingray shall maintain a

record of all waivers granted under this section and

shall make such record available upon written request

to the Commission and to any Shipper.

10.7 Crediting of Collected Charges to Compliant Shippers:

Stingray shall credit to Compliant Shippers any OFO

Violation Charges and/or Unauthorized Overrun Charges

collected net of cost Stingray incurs as a result of

such OFO issuance. The net amount shall be credited

among Compliant Shippers based on their allocated

physical receipts during the month the OFO was

initially issued. The credit shall be reflected on the

Shipper invoice issued two months after the month of

collection. If direct costs exceed the charges

collected, no crediting shall occur. A Compliant

Shipper is any Shipper that was charged for

transportation service under any applicable rate

schedule but was not assessed any OFO Violation or

Unauthorized Overrun Charges during the month an OFO

was initially issued.