Paiute Pipeline Company

Second Revised Volume No. 1-A

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

First Revised Sheet No. 71 First Revised Sheet No. 71 : Effective

Superseding: Original Sheet No. 71

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.6 Interruptions or Curtailment of Service: (Continued)

b. Requests for voluntary curtailment will be made to

Low Priority customers. Low Priority customers

willing to be curtailed first will negotiate the

compensation to be paid by the Firm Shippers

receiving the diverted gas supplies. If voluntary

curtailment is not sufficient to satisfy supply

needs, then the curtailment order will proceed.

c. Beginning in reverse order of priority, firm capa-

city and supply used to satisfy Low Priority loads

will be curtailed pro rata within a given priority,

and the supplies diverted to the affected Firm

Shipper(s).

d. Curtailment will continue until:

1. All Low Priority loads are curtailed; or

2. The volume required to forestall High Priority

curtailment is diverted.

e. In the event that diverted Low Priority volumes are

not sufficient to prevent High Priority curtailment,

then all High Priority shipper(s) will share in the

High Priority curtailment beginning with Priority 2c

volumes. Curtailment will be pro rata within a given

priority and will continue until Priority 1 load is

protected across the Paiute system.

f. In the event an electric utility declares that cur-

tailment of Low Priority gas service would create a

Firm Load Electrical Emergency, the volumes required

to forestall such Firm Load Electrical Emergency

will be deemed to be Priority 1 volumes for the pur-

poses of curtailment during that specific instance.

g. Firm Shipper(s) receiving diverted supplies will

reimburse those firm shipper(s) being curtailed for

their costs of acquiring and having transported such

supplies in addition to their incremental costs in

acquiring and using their least cost alternative

energy needs available to the Shipper during such

period of curtailment.