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$, Receipt Point~ <br /> <br />(a) Gas delivered by Customer (or its designee) to TXUGD hereunder will be delivered at the outlet of a city gate <br />meter, referred to herein as the "Receipt Point," described on the signature p~ge of this Contract. The Receipt Point <br />will be at an active city gate o~ the TXUGD's distribution system, described on the signature page of this Contract. <br />provided, that if TXUGD owns the applicable city gate, the Receipt Poinl will be thc inlet of the city gate. It is <br />agreed tha~ Customer and TXUGD may mutually agree to addilionai receipt points under this Contract that will also <br />be at active city gates on such distribution system. <br /> <br />(b) Notwithstanding an!ahing contained in this Contract that might be construed to the contras', in the event of <br />unfavorable operating conditions (as determined by TXUGD in its sole opinion), or a change of ownership of a <br />specific Receipt Point or appurtenant 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 (9 to <br />immediately discontinue the receipt of gas from any such Receipt Point and/or (ii) upon thirty (30) days' prior <br />written notice to Customer, to delete any such Receipt Point from this Contract. However, Customer and T×UGD <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. Interruotible Service <br /> <br />Customer hereby acknowledges that TXUGD's ~:ceipt and delivery of gas volumes hereunder will be on a wholly <br />intermptible basis and subject m: (i) the most efficient and economic utilization of TX'UGD's pipeline capacity as <br />determined by 'rXUGD in its sole discretion; (ii) pipeline capacity necessary to serve existing or _future sales <br />customers under tariffs filed with applicable regulatory authorities or under negotiated contracts as determined by <br />TXUGD in its sole discretion; and (iii) the other terms and conditions contained in this Contract. Customer agrees <br />that such transportation service may be interrupted, in whole ot in paz'L from time to time, without notice; however, <br />T'XUGD'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 />TXUGD 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 />TXUGD 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 TX'UGD 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 TXI.ICiD for any r~ason. <br /> <br />10. ~ominations <br /> <br />(a) Custoroer will provide TXUGD with its tint of the month nomination of volumes for receipt and delivery by <br />TXUGD du~ng a month no later than I 1:30 a.m. central clock time 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 nominatlon by Customer will contain the nominated quantities for each Receipt Point and the <br />Delivery PoinL designation of the appropriate contrnct(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 busianss day, provided such <br />nomination change must be received by TXUGD 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 ~ceipt and delivery by TXUC}D under this Contract for any month, <br />TXUGD may suspend Iranspormtion service under this Contract for such month. Such interruption of ser'~ice by <br />TXUGD will not prevent etfforcement by TXUGD of any of its other legal rights or remedies nor will the same be <br />consumed as a breach of the obligations of TXUGD under this Contract. <br /> <br />(c) IfCnstomer fails to nominate volumes for receipt and delivery by TXUGD under this Contract for three(3) <br />consecutive months during the term of this Contract, TXUGD may upon thirty (30) days prior written notice to <br />Customer terminate this Contrant: provided, the obligations to make payment for monies duc under this Contract, <br />including payments for any kind of imbalances, will not be extinguished. <br /> <br />(fi Customer understands and agrees that TXUGD may for operational reasons prorate and/or totally refuse te <br />accept new nominations or honor then existing nominations at any existing Receipt Points and/or proposed Receipt <br /> <br />Rev 05/25/01 Attach. to Rate Sch. 4221 <br /> <br />18 <br /> <br /> <br />