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<br />SCHEDULE "D" TO <br />OPTIONAL INDUSTRIAL GAS SALES OR GAS TRANSPORTATION CONTRACT <br /> <br />GENERAL TERMS AND CONDITIONS APPLICABLE TO TRANSPORTATION <br />SERVICE <br /> <br />1. Transoonation Service <br /> <br />TXUGD agrees to transport gas for Customer and Customer agrees to purchase and receive gas uansponation <br />service from TXUGD to meet Customer's natw"al gas requirements at Customer's premises described on the <br />signature page of this Contract. subject to and in accordance with all the tcnns and conditions con13ined in this <br />ConlfaCt. <br /> <br />2, Definitions <br /> <br />(a) "ConlfaCt" means the signature page of this Contract. the effective Selection of Service form executed by <br />Customer and TXUGD, Schedule "B" of this Contract and this Schedule "D." <br /> <br />(b) "Day" means the period of time beginning at 9:00 A.M. central clock time on one calendar day and ending at <br />9:00 A.M. central clock time on the following calendar day. <br /> <br />(c) "Decatherm" has the meaning set forth in paragraph Sea) of Schedule "B" of this Contract. - <br /> <br />(d) "Delivery Point" has the meaning set forth on the signature page of this Contract. <br /> <br />(e) "Gas" means natural gas produced from gas wells. vaporized natural gas liquids. gas produced in association <br />with oil (casinghead gas) andlor the residue gas resulting from processing casinghead gas andlor gas well gas. <br /> <br />(f) "Maximum Daily Quantity" has the meaning set forth in the applicable Selection of Service Form. <br /> <br />(g) "Month" means the period of time beginning at 9:00 A.M. central clock time on the fllSt day of a calendar <br />month and ending at 9:00 A.M. central clock time on the fU'St day of the succeeding calendar month. <br /> <br />(h) "Receipt Point" has the meaning set forth on the signature page of this Contract. <br /> <br />(i) "Retention Volume" has the meaning set forth on the signature page of this ConlfaCt. <br /> <br />(j) "Taxes" has the meaning set forth in paragraph ll(b) of Schedule "B" of this ConlfaCt. <br /> <br />(k) "Transponation" as used in this Contract includes the movement of gas by displacement and backhaul, and as <br />such. the term "transponation" or "transport" as used herein includes the delivery of gas by TXUGD that is not the <br />same gas received by TXUGD. <br /> <br />(I) "Transport gas" means that volume of gas received by TXUGD for transportation to Customer Jess the <br />Retention Volume. <br /> <br />3. Ouantitv <br /> <br />Customer represents that it owns or controls certain quantities of natural gas. and Customer desires that TXUGD <br />receive such gas from Customer (or its designee) at the Receipt Point(s); and deliver gas to the Delivery Point in <br />quantities as agreed to by the parties herein. It is agreed that the quantity of gas to be transported under this Contract <br />will not exceed the maximum annual, daily or hourly quantities specified on the effective Selection of Service Form. <br /> <br />4. Tide.-WatTantv &. Indemnity <br /> <br />Customer warrants that at the time of delivery of gas hereunder to TXUGD for transponation, Customer will have <br />good title or the right to deliver such gas, and that such gas will be free and clear of all liens and adverse claims. <br />Customer agrees to indemnify TXUGD for, and hold TXUGD harmless from, all suits, actions, debts, accounts, <br />damages, costs (including attorneys' fees), losses and expenses arising from or out of any adverse claims of any and <br /> <br />Rev OS/25/01 Attach. to Rate Sch. 4221 <br /> <br />16 <br />