Paiute Pipeline Company

Second Revised Volume No. 1-A

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

First Revised Sheet No. 63A.1 First Revised Sheet No. 63A.1 : Effective

Superseding: Original Sheet No. 63A.1

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.2 Scheduling of Gas Receipts and Deliveries: (Continued)

(e) Gas Used by Paiute under Rate Schedules FT-1 and IT-l:

(1) Paiute's dispatcher shall notify each Shipper not later

than five (5) days prior to the start of each month of the

quantity (percentage) of gas Shipper must cause to be

tendered for Paiute's use during the month. Gas Used by

Paiute shall be expressed as a percentage of the quantities

that Shipper schedules for receipt by Paiute at the Receipt

Point(s). Paiute shall establish the percentage based on

prior months' actual average daily usage, as adjusted for

any over- or under-retention of such quantities of Shippers'

gas which occurred during such prior months. Paiute shall

have the right to adjust the percentage to reflect the

actual quantity of Gas Used by Paiute, so as not to create

an imbalance on Paiute's system.

In the interests of minimizing any volatility in the monthly

percentages of Gas Used by Paiute and providing some degree

of predictability for Shippers' gas acquisition planning

purposes, Paiute will use the following parameters in

establishing the monthly percentages of Gas Used by Paiute.

For the months of October through March, inclusive, the

average of the six monthly percentages of Gas Used by Paiute

shall be no less than 0.8% and no greater than 2.4%; for the

months of April through September, inclusive, the average of

the six monthly percentages of Gas Used by Paiute shall be

no less than 0.65% and no greater than 1.95%; provided,

however, that the average of the six monthly percentages

of Gas Used by Paiute may deviate from the above-prescribed

seasonal ranges if (1) Paiute deems it necessary in order

to avoid exacerbating its over- or under-retention of Gas

Used by Paiute or an imbalance between Paiute's system and

an upstream pipeline system, and (2) Paiute first confers

with its affected firm shippers and explains in detail the

reasons for such deviation. In no event will the percentage

for any month exceed 3.0%.

(2) On or before October 25 of each year, Paiute will provide

to each firm Shipper a report presenting the following

information for each of the prior twelve (12) calendar

months: