Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 12/07/2003, Docket: RP04- 51-000, Status: Effective

First Revised Sheet No. 23 First Revised Sheet No. 23 : Effective

Superseding: Original Sheet No. 23

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

(Continued)

6. FACILITY ADDITIONS (Continued)

In addition to the charges specified in Section 3 of this rate sched-

ule, Paiute may charge Shipper as set forth an amount to recoup the

cost of facilities constructed at the Shipper's request in order to

provide service under this rate schedule. Paiute shall not use the

amounts so collected in establishing its general system rates. The

applicable new facilities charge shall be stated in the transportation

contract.

Paiute will construct the following facilities pursuant to the authori-

zation granted in Subpart F of Part 157 of the Regulations of the

Federal Energy Regulatory Commission, or where the prior authorization

of the Federal Energy Regulatory Commission is not required to

construct such facilities:

6.1 General Installation -- Subject to Section 6.3 below, Paiute will

construct facilities, to render transportation services hereunder

that are requested by Shipper where Shipper agrees to pay all

costs associated with such facilities.

6.2 From time to time, Shippers may request new facilities for which

Shipper will not reimburse Paiute for costs associated with such

facilities. In this case, Paiute will construct such facilities

that in its sole good faith determination it deems to be econo-

mical. For purposes of determining whether projects are economic,

Paiute will evaluate projects on the basis of the cost of the

facilities, operation and maintenance as well as administrative

expenses attributable to the facilities, the revenues Paiute

estimates will be generated as a result of the project, and the

FERC's pricing policies. In estimating the revenues to be gener-

ated, Paiute will evaluate the existence of capacity limitations

downstream of the facilities, the potential market for the addi-

tional gas, the firm versus interruptible nature of gas received