Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Second Revised Sheet No. 74 Second Revised Sheet No. 74 : Effective

Superseding: First Revised Sheet No. 74

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.7 Operating Procedures for Rate Schedule LGS-1 Service:

Paiute shall retain full operational control of its LNG Plant and

shall schedule receipts and deliveries, including the receipt of

liquefied natural gas (herein called "LNG") by truck, and at all

times be entitled to operate the LNG Plant in a manner which is

consistent with the obligations and operating conditions and lim-

itations set forth elsewhere in this tariff, as such obligations

and operating conditions and limitations may exist from time to

time on Paiute's system. In addition to the other provisions of

this tariff, the following terms and conditions shall apply

specifically to the operation by Paiute of its LNG Plant:

(a) Receipt of Gas at the LNG Plant: Except for LNG tendered by

Shipper for receipt at Paiute's LNG truck unloading facility,

which is addressed in subparagraph (b) below, natural gas

tendered by Shipper on any day to the LNG Plant shall be gas

that has been transported by Paiute pursuant to either Rate

Schedule FT-1 or Rate Schedule IT-1 of this tariff. Paiute

will accept gas from Shipper for liquefaction on any day dur-

ing the Summer Period, operating circumstances permitting.

Paiute may accept gas for liquefaction on other days if

Paiute determines that such liquefaction will not adversely

affect Paiute's operations or its service obligations to its

other customers. Paiute's acceptance of gas for liquefaction

shall be on a pro rata basis of Shipper's tendered quantity

to the total quantity scheduled for liquefaction on that day

at the LNG Plant.

Paiute shall provide the Shippers under Rate Schedule LGS-1

with a daily schedule of the total liquefaction quantity

thirty (30) days prior to the commencement of the Summer

Period subject, however, to such changes as operating con-

ditions may require. In scheduling the operation of the LNG

Plant, Paiute, to the extent possible, will attempt to take

into account all economic factors including gas supply and

market conditions communicated to Paiute by the various

Shippers.