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<br />8. Receiot Points <br /> <br />(a) Gas delivered by Customer (or its designee) to TXUGD hereunder will be delivered at the oullet of a city gate <br />meter. referred to herein as the "Receipt Point," described on the signature page of this Contract. The Receipt Point <br />will be at an active city gate on the TXUGD's disttibution system, described on the signature page of this Contract. <br />provided, that ifTXUGD owns the applicable city gate, the Receipt Point will be the inlet of the city gate. It is <br />agreed that Customer and TXUGD may mutually agree to additional receipt points under this Contract that will also <br />be at active city gates on such distribution system. <br /> <br />(b) Notwithstanding anything contained in this Contract that might be construed to the contrary, in the event of <br />unfavorable operating conditions (as determined by TXUGD in its sole opinion). or a change of ownenhip of a <br />specific Receipt Point or appunenant facilities, or if. in TXUGD's sole opinion. the receipt of gas from a specific <br />Receipt Point ever becomes uneconomical for any reason whatsoever, then TXUGD will have the right (i) to <br />immediately discontinue the receipt of gas from any such Receipt Point and/or (ii) upon thiny (30) days' prior <br />wriuen nOlice to Customer, to delete any such Receipt Point from this Contract. However. Customer and TXUGD <br />may agree to perform this Contract with reduced volumes. or Customer and TXUGD may agree that Customer will <br />pay for the necessary increase in capacity of the facilities involved. <br /> <br />9. Interrurnible Service <br /> <br />Customer hereby acknowledges that TXUGD's receipt and delivery of gas volumes hereunder will be on a wholly <br />interruptible basis and subject to: (i) the most efficient and economic utilization of TXUGD's pipeline capacity as <br />determined by TXUGO in its sole discretion; (H) pipeline capacity necessary to serve existing or fature sales <br />customers under tariffs filed with applicable regulatory authorities or under negotiated contracts as determined by <br />TXUGD in its sole discretion; and (Hi) the other terms and conditions contained in this Contract. Customer agrees <br />that such transportation service may be interrupted. in whole or in pan. from time to time, without notice; however. <br />TXUGD's dispatcher will endeavor to advise (by telephone or electronic medium) Customer's dispatcher or <br />authorized representative of an interruption as soon as practicable, either before or after such interruption. but <br />TXUGO will have no liability for any failure to give such notice. In no event will an interruption of transportation <br />service pursuant to the terms. conditions and contingencies of this Contract constitute a breach of this Contract. and <br />TXUGO will not be liable to Customer or third parties in damages or otherwise because of any interruption of such <br />service. Customer agrees to indemnify TXUGD for, and hold TXUGD harmless from. any damages, causes of <br />actions or claims asserted by any third parties as a result of any termination. suspension, or interruption of services <br />hereunder by TXUGD for any reason. <br /> <br />10. Nominations <br /> <br />(a) Customer will provide TXUGD with its frrst of the month nomination of volumes for receipt and delivery by <br />TXUGn during a month no later than II :30 a.m. central clock llme on the second business day prior to the first <br />calendar day of each month. giving due consideration to the Retention Volume. <br /> <br />(b) Each such nomination by Customer will contain the nominated quantities for each Receipt Point and the <br />Delivery Point, designation of the appropriate contract(s) covering such gas. and the identity by name and telephone <br />number of individual(s) who have authority to confirm the gas volumes nominated at each Receipt Point and the <br />Delivery Point. <br /> <br />(c) Customer may change nominated volumes for the remainder of a month on any business day, provided such <br />nomination change must be received by TXUaO prior to 10:00 a.m. central clock time of any business day to be <br />effective the next business day. <br /> <br />(d) If Customer fails to nominate volumes for receipt and delivery by TXUGD under this Contract for any month, <br />TXUGD may suspend transportation service under this Contract for such month. Such interruption of service by <br />TXUGD will not prevent enforcement by TXUGD of any of its other legal rights or remedies nor will the same be <br />construed as a breach of the obligations of TXUGD under this ContracL <br /> <br />(e) If Customer fails to nominate volumes for receipt and delivery by TXUGD under this ContraCl for three(3) <br />consecutive months during the term of this Contract, TXUGD may upon thiny (30) days prior written notice to <br />Customer tenninate this Contract; provided. the obligations to make payment for monies due under this Contract, <br />including payments for any kind of imbalances, will not be extinguished. <br /> <br />(f) Customer undentands and agrees that TXUGD may for operational reasons prorate and/or totally refuse to <br />accept new nominations or honor then existing nominations at any existing Receipt Points and/or proposed Receipt <br /> <br />3 <br /> <br />Rev OS/25/01 Attach. to Rate Sch. 4221 <br /> <br />18 <br />