Enbriidge Pipelines (Midla) L. L. C.

FIFTH REVISED VOLUME NO. 1

Effective Date: 10/01/2009, Docket: RP09-980-000, Status: Effective

First Revised Sheet No. 172 First Revised Sheet No. 172

Superseding: Original Sheet No. 172

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.

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 or cash-out revenue collected pursuant to this

Section 17, Section 5 or Section 14 by Pipeline during each

Month of a 12 Month period, beginning on the effective date

of the Section 17.1(d) net of all costs incurred by

Pipeline, shall be refunded to each non-offending Customer

(during the period the penalty or cash-out was incurred).

For the purpose of computing credits to non-offending

customer(s), such calculations shall be computed on a

monthly basis. If Pipeline incurs a net cost during such 12

Month period, the amount will be deferred to offset against

penalty revenue during the next 12 Month period. Carrying

costs shall be calculated on the net balance each Month

utilizing the rate set forth in Section 154.501 of the

Commission's Regulations.

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

more than one (1) penalty provision under this