Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Original Sheet No. 63B.1 Original Sheet No. 63B.1 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.2 Scheduling of Gas Receipts and Deliveries: (Continued)

(3) When the fuel reimbursement method is fuel in-kind, the

results of the fuel reimbursement (Gas Used by Paiute)

calculations for the Nomination process should be rounded to

the nearest Dth or Gigajoule (Canada). Where fuel reimburse-

ment is in-kind, the standard fuel (Gas Used by Paiute)

calculation mechanism, as this is related to the Nomination

process, should be (1-Fuel %/100) multiplied by receipt

quantity = delivery quantity.

For current in-kind fuel reimbursement procedures,

fuel rates should be made effective only at the beginning

of the month. For in-kind fuel reimbursement methods,

Service Providers should not reject a nomination for

reasons of rounding differences due to fuel calculation

of less than 5 Dth. For in-kind fuel reimbursement methods,

Service Providers should provide, if applicable, a fuel

matrix for receipt and delivery point combinations. The

Service Requesters should not be responsible for calculat-

ing and totaling fuel based on each zone or facility

traversed. The transportation priority for fuel should be

the same as the level of service as the transaction to

which it applies.

(f) In the event sufficient capacity is not available to schedule

all requests for interruptible service, Paiute shall

interrupt first all interruptible service which is being pro-

vided a discount from the maximum rate applicable to such

service by the rate being paid, from lowest to highest. If a

Shipper's interruptible service is subject to interruption

based on its discounted rate, such Shipper shall be afforded

an opportunity to match a higher rate to avoid such interrup-

tion. Service which is being provided at the same rate shall

be interrupted by Priority Date, as determined by Paiute,

from newest to oldest. Service which is provided at the same

rate and which also has the same Priority Date shall be

interrupted based on the pro rata share of such Shipper's

scheduled quantity to the total scheduled quantities for such

priority for such day. Paiute shall then interrupt all

interruptible service which is being provided at the maximum

rate applicable to such service by Priority Date, as deter-

mined by Paiute, from newest to oldest. Agreements having the

same Priority Date shall be interrupted based on the pro rata

share of such Shipper's scheduled quantity to the total

scheduled quantities for such priority for such day.