Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 12/30/2004, Docket: RP04- 51-001, Status: Effective

Fourth Revised Sheet No. 81 Fourth Revised Sheet No. 81 : Effective

Superseding: Third Revised Sheet No. 81

GENERAL TERMS AND CONDITIONS

(Continued)

5. OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)

5.1 Daily Contract Entitlement Overrun: (Continued)

(b) Authorized Daily Overrun: In the event that Shipper desires

to take gas on a given day in excess of its Daily Authorized

Quantity, Shipper may request permission from Paiute to take

such gas in excess of its Daily Authorized Quantity during

a Nomination cycle, pursuant to the provisions of Section

4.2 of the General Terms and Conditions of this tariff. If

Paiute determines, in its sole reasonable judgement, that

sufficient capacity exists on its system for that day to

permit Shipper to take gas in excess of its Daily Authorized

Quantity without impairing Paiute's ability to operate its

system facilities or to meet its other service obligations,

then Paiute will permit Shipper to take such gas on an inter-

ruptible basis. All gas permitted by Paiute to be taken by

Shipper in excess of its Daily Authorized Quantity shall

constitute Authorized Overrun Gas, and shall be subject to

a charge equal to the quantity of Authorized Overrun Gas in

dekatherms multiplied by the sum of the Daily Reservation

Charge and the Usage Charge applicable to Rate Schedule

FT-1, as specified on Sheet No. 10 of this tariff.

overruns may seriously interfere with Paiute's ability to

operate its system facilities, and thus may cause Paiute to

be unable to meet its service obligations, adequate

incentives must be provided to deter such overruns. All gas

taken by Shipper in excess of its Daily Authorized Quantity,

without the advance permission of Paiute, shall constitute

Unauthorized Overrun Gas. If circumstances on Paiute's

system are such that unauthorized overruns could impair

Paiute's ability to operate its system facilities or to

meet its service obligations, then Paiute may issue

an operational flow order (OFO) statement (verbal or written)

under this section. The OFO may be issued at any time during

the Gas Day, using the procedures set forth in Section 4.6(f)

of the General Terms and Conditions, and will be effective

immediately unless otherwise specified. For any Gas Day for

which Paiute has issued an OFO under this section, Unautho-

rized Overrun Gas shall be subject to the following penalties: