Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 198 Original Sheet No. 198 : Superseded







either of the following events occurs:

(1) When Norte¤o's ability to fully

recover such costs is denied in any

Section 4 or Section 5 rate proceeding,

or (2) when Shipper ceases operations at

the delivery point where the facilities

were installed.


(b) Any new facilities contemplated by

Section 5.3(e) which do not meet the

economic test of Section 5.4(a)(3) shall

be installed by Norte¤o at Shipper's



(1) Norte¤o shall install, own, operate, and

maintain all such equipment at Shipper's

expense unless otherwise agreed to in

writing by Norte¤o and Shipper. All

such facilities owned and operated by

Norte¤o must include any rights-of-way

necessary to access facilities for

inspection and maintenance. Any such

facilities constructed by Shipper or

Shipper's agent must be in accordance

with Norte¤o's specifications. Norte¤o

must approve design drawings and bills

of materials, and construction shall be

subject to approval by Norte¤o's



(2) Shipper shall coordinate the

construction of such facilities with

Norte¤o so that Norte¤o may reasonably

have inspectors at the site during

construction. Shippers assume full

responsibility and liability and agree

to hold Norte¤o harmless from any

liability of any nature arising from the

installation of such facilities by

Shipper, or Shipper's agents. It is the

Shipper's responsibility to assure that

all facilities installed and owned by

Shipper or any other party upstream of a

receipt point or downstream of a