Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Second Revised Sheet No. 76 Second Revised Sheet No. 76 : Effective

Superseding: First Revised Sheet No. 76

GENERAL TERMS AND CONDITIONS

(Continued)

4. OPERATING PROCEDURES (Continued)

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

Paiute shall recover the credit against Storage and

Delivery Charges as described above from the Non-LNG

Customer(s) which received the benefit of the inventory

withdrawn. In the event that more than one Non-LNG

Customer received benefit, the credit against Storage

and Delivery Charges established above will be recovered

from each such Non-LNG Customer in proportion to its

respective share. In addition, such Non-LNG Customer(s)

are required to replace the LNG inventory used in-kind

as soon as practical in a manner to be agreed upon by

Paiute and the LNG Customer(s) owning the inventory

that was withdrawn.

In the alternative, and subject to operational and

scheduling approval by Paiute, which shall not be with-

held unreasonably, as soon as possible after notifica-

tion of the LNG use, and at the option of and with the

concurrence of the LNG Customer whose inventory was

appropriated, the Non-LNG Customer may replace the LNG

with gas from such Non-LNG Customer's flowing gas

supply or with LNG delivered to Paiute's LNG truck

unloading facility. In the event that either of these

alternatives is elected and used by the LNG Customer and

the Non-LNG Customer, Paiute shall be relieved of its

obligation to provide a credit against the Storage and

Delivery Charges, and no charge shall be imposed on the

Non-LNG Customer, as specified in this section. In addi-

tion to providing replacement of the LNG inventory actu-

ally used, such replacement shall include a volume of

gas equal to the Gas Used by Paiute to both liquefy and

gasify the LNG Customer's inventory, which percentages

are specified in Section 5 of Rate Schedule LGS-1.

(4) Shippers under Rate Schedule LGS-1 may transfer the own-

ership of stored LNG among one another, subject to the

following conditions:

a. The owner of the stored LNG notifies Paiute's dis-

patcher by telephone of the transfer of ownership

prior to such transfer. Paiute will not recognize

the change in inventory ownership for dispatching

purposes prior to such notification.