Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 01/01/2006, Docket: RP05-163-004, Status: Effective

Second Revised Sheet No. 63B Second Revised Sheet No. 63B : Effective

Superseding: First Revised Sheet No. 63B

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.2 Scheduling of Gas Receipts and Deliveries: (Continued)

a. For transportation services, the aggregate quantities

of natural gas (1) received into Paiute's system,

(2) delivered from Paiute's system, (3) consumed as

fuel in Paiute's transmission system operations, (4)

lost and unaccounted for with respect to Paiute's

transmission system operations, (5) scheduled for

transportation under Rate Schedules FT-1 and IT-1;

(6) retained from Shippers as Gas Used by Paiute; and

(7) forfeited by Replacement Shippers under Section

2.3 of Rate Schedule LGS-1 and by Shippers under Section

2.4 of Rate Schedule LGS-2.

b. For LNG storage services, the aggregate quantities of

natural gas (1) liquefied for storage, (2) vaporized

for delivery into Paiute's transmission system (the

quantity of gas vaporized where Paiute initiates

vaporization without a Shipper nomination will be

separately stated), (3) consumed as fuel during

liquefaction and vaporization operations, as well as

for plant operations (each quantity to be stated

separately), (4) lost and unaccounted for with respect

to Paiute's LNG storage operations, (5) stored in

inventory at the beginning of the month and at the end

of the month, stated in total working gas inventory

owned by Shippers and total cushion gas inventory owned

by Paiute, and (6) retained from Shippers as Gas Used

by Paiute, stated separately for liquefaction and

vaporization operations.

c. The imbalance quantities between Paiute and each up-

stream pipeline that delivers natural gas into Paiute's

system, and the imbalance quantity between Paiute and

its Shippers in aggregate, stated at the end of the

month.

d. Workpapers and other materials that explain the deriva-

tion of the percentage of Gas Used by Paiute established

for transportation services.

All quantities of natural gas will be stated in dekatherms.