Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 01/01/1997, Docket: RP96-306-000, Status: Suspended

First Revised Sheet No. 21A First Revised Sheet No. 21A : Suspended

Superseding: Second Substitute Original Sheet No. 21A

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 transporta-

tion commodity rate of Rate Schedule FT-1 and all Rate

Schedule IT-1 rate surcharges for all interruptible volumes

transported.

(b) Paiute shall retain all remaining interruptible transporta-

tion 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 and/or sub-

sequent rate cases, allocated to interruptible service, has

been received for the applicable one-year period. For any

one-year period during which rates are revised as a result of

a new rate case, Paiute shall prorate the total dollar amount

of fixed costs allocated to interruptible service for the

applicable portion of the one-year period, on a monthly

basis, by dividing such fixed costs by 12 and multiplying by

the number of months in the applicable portion of the one-

year period. The amount for the one-year period shall be the

sum of the portions for each segment of the 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. 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 pro-

vision that exceeds the Reservation Charges paid under this

Rate Schedule by such Shipper during each one-year period.