Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 11/01/1993, Docket: RS92- 75-008, Status: Effective

Substitute Original Sheet No. 21A Substitute Original Sheet No. 21A : Superseded

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

(a) From the revenues received for interruptible transportation

service under Rate Schedule IT-1, Paiute shall first deduct

and retain the revenues equal to the sum of the transpor-

tation commodity rate of Rate Schedule FT-1 and all IT-1 rate

surcharges for all interruptible volumes transported.

(b) Paiute shall retain all remaining interruptible transpor-

tation revenues received under Rate Schedule IT-1 until such

time as the total dollar amount of fixed costs, as set forth

in its final approved rates in Docket No. RP93-6, allocated

to interruptible service, has been received for the appli-

cable one-year period.

remaining after performing steps (a) and (b) of this cre-

diting mechanism. The remaining 90 percent shall be credited

to each FT-1 Shipper (except that the credit for a Shipper

disputing its bill shall be held in a separate account

pending final resolution of the dispute) based on the propor-

tion of such Shipper's FT-1 monthly billing determinants to

the total FT-1 monthly billing determinants applicable to all

FT-1 Shippers.

(d) The revenues to be credited as described above, if any,

together with interest calculated in accordance with Section

154.67(c)(2)(iii) of the Commission's Regulations, shall be

credited to Shippers under this Rate Schedule on an annual

calendar year basis, beginning the day after issuance of a

final order on rehearing in Docket No. RP93-6. In the event a

credit amount cannot be applied to a Shipper under Section

3.3(c) above, Paiute shall flow such amount through by means

of a refund. In no event shall any Shipper receive a credit

or refund under this provision that exceeds the Reservation

Charges paid under this Rate Schedule by such Shipper during

each one-year period or partial period.