Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/19/2005, Docket: RP04- 51-003, Status: Effective

Third Revised Sheet No. 25A Third Revised Sheet No. 25A : Effective

Superseding: Second Revised Sheet No. 25A

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

(Continued)

12. RESERVATION CHARGE ADJUSTMENTS (Continued)

12.2 The Reservation Charge adjustment provided in Section 12.1 hereof

shall not apply if Paiute's failure to transport or accept for

scheduling the quantity requested by Shipper was due to:

(a) Shipper's failure to deliver such gas to Paiute (including

the failure to provide for the withdrawal of any necessary

quantities of gas from the LNG Plant when such failure is

attributable to Shipper), or to Shipper's or Receiving

Party's inability to accept delivery of such gas;

(b) operating conditions on upstream pipelines not within the

control of Paiute; or

(c) an event of force majeure, as set forth in Section 6.1 of the

General Terms and Conditions of this tariff, or an event of

non-routine repairs or maintenance which, if not performed

promptly, would likely lead to an operating malfunction or

equipment failure or damage, provided that the need for such

non-routine repairs or maintenance has not been caused by neg-

ligence on the part of Paiute.

Notwithstanding the foregoing provisions of this subsection

(c), the Reservation Charge adjustment provided in Section

12.1 hereof shall apply during such an event of force majeure

or non-routine repairs or maintenance, except that the

adjustment shall be computed by multiplying the quantity that

Paiute failed to transport or accept for scheduling on each

day of such event by the portion of the Daily Reservation

Charge set forth on Sheet No. 10 of this tariff that repre-

sents Paiute's equity return and associated income taxes.

Such portion of the Daily Reservation Charge will be referred

to as the "Daily Reservation Charge Equity and Tax Component".

The Daily Reservation Charge Equity and Tax Component will

be posted on Paiute's Electronic Bulletin Board, along with

the derivation of such component.