Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 12/09/2003, Docket: RP04- 51-001, Status: Effective

Substitute First Revised Sheet No. 82 Substitute First Revised Sheet No. 82 : Effective

Superseding: Original Sheet No. 82

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.2 Restricted Entitlement Events:

(a) Restricted Delivery--Paiute System

(1) Applicability: This section applies to both firm and

interruptible transportation service under Rate

Schedules FT-1 and IT-1 when Paiute initiates general

system entitlement restrictions to alleviate operating

conditions or events which threaten or could threaten

the safe operation or integrity of Paiute's system.

Conditions or events that may trigger the imposition

of restricted entitlements include unscheduled inter-

ruptions or curtailments of service, force majeure

events on Paiute's system and/or the systems of upstream

pipelines (such as pipeline, compressor, or storage

facility failures), excess linepack drafting or packing,

and unexpected extreme weather conditions. An explicit

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

by Paiute is required to activate 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. The OFO may be issued for

either overrun or underrun situations and may be appli-

cable to all Shippers or to individual Shippers taking

more or less gas from the system than the quantities

scheduled for delivery to such Shippers. Paiute shall

specify in the OFO statement whether the entitlement

event is an overrun or underrun entitlement.

(2) Daily Scheduled Quantity: The quantity of gas sched-

uled pursuant to Section 4.2 and/or Section 4.6 of the

General Terms and Conditions of this tariff shall

constitute the maximum quantity that Paiute is obligated

to deliver to Shipper (Daily Scheduled Quantity).

(3) Any quantity taken by Shipper in excess of the Daily

Scheduled Quantity during an OFO period applicable to an

overrun situation shall constitute an Unauthorized Daily

Overrun. Any quantity taken by a Shipper less than the

Daily Scheduled Quantity during an OFO period applicable

to an underrun situation shall constitute an Unauthorized

Daily Underrun. An Unauthorized Daily Overrun and an

Unauthorized Daily Underrun are subject to the following

penalties: