Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-104-001, Status: Effective

First Revised Sheet No. 151 First Revised Sheet No. 151 : Superseded

Superseding: Original Sheet No. 151




25.15 Obligations of Replacement Customer


By executing a service agreement for released capacity, the

Replacement Customer agrees that it will comply with the terms

and conditions of Pipeline's certificate of public convenience

and necessity authorizing this capacity release program and the

terms and conditions of Pipeline's FERC Gas Tariff.


(i) The Replacement Customer agrees to indemnify Pipeline

against and to release and hold Pipeline harmless

against any loss, liability or expense (including,

without limitation, court costs and attorneys fees)

incurred or suffered by Pipeline or the Replacement

Customer arising out of or in connection with the

provisions of this section, except for losses, damages

or expenses caused solely by Pipeline's own negligence

or willful misconduct.


(ii) The Replacement Customer shall be liable for the portion

of the demand or reservation charges specified in its

service agreement, along with all commodity related

charges applicable to its service utilization, and all

applicable penalties. Pipeline will invoice the

Replacement Customer on a monthly basis and the

Replacement Customer shall make payment in accordance

with Sections 6 and 7 of these General Terms and



25.16 Marketing Fee


Pipeline will charge a marketing fee to be negotiated between

Pipeline and the Releasing Customer where Pipeline

successfully markets the released capacity on the Releasing

Customer's behalf.




Nothing in Pipeline's FERC Gas Tariff shall operate to inhibit the

development of market centers on Pipeline's system. Pipeline will

permit market centers to develop at the points of interconnection

between other pipelines or other LDC systems. Any aggregator of gas

supply contracts on Pipeline's system must adhere to the nominations

procedures and other terms and conditions of Pipeline's FERC Gas

Tariff, and pay the fees and charges associated with their service

as may be revised from time to time.