Paiute Pipeline Company

Second Revised Volume No. 1-A

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

First Revised Sheet No. 74B First Revised Sheet No. 74B : Effective

Superseding: Original Sheet No. 74B

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

4.7 Operating Procedures for Rate Schedule LGS-1 Service: (Continued)

(4) As between Paiute and Shipper, Shipper shall be solely

responsible for making all arrangements for having LNG

transported by truck for delivery to the LNG Plant, and

for ensuring compliance with all federal, state, and

local laws and regulations applicable to the transporta-

tion of LNG by truck.

ject to the following:

(1) Paiute shall operate the storage tank in a safe and

reasonable manner. Subject to Section 4.10 hereof, any

losses of inventory from the facilities shall be the

sole responsibility of the owner of the inventory.

(2) The ownership of LNG in storage at any given time

will be determined by good accounting practices, subject

to a material balance audit once each twelve (12) calen-

dar months corresponding with the beginning of the

Winter Period.

a. Shipper's inventory at the LNG Plant will be equal

to Shipper's natural gas tendered to the LNG Plant,

plus LNG tendered by Shipper to the LNG Plant at the

LNG truck unloading facility, less: (1) the with-

drawals of Shipper's gas, (2) the measurable boil-

off and fuel attribution to Shipper, and (3) the

allocation of any lost or unaccounted for gas deter-

mined at the time of the audit which is assigned to

each Shipper.

b. The results of the audit and detailed workpapers of

such audit will be provided to each Shipper within

twenty (20) days of the completion of the audit.