Paiute Pipeline Company

Second Revised Volume No. 1-A

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

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

Superseding: Original Sheet No. 82A

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.2 Restricted Entitlement Events: (Continued)

a. No penalty shall apply to Unauthorized Daily Overrun

or Unauthorized Daily Underrun gas that is less than

or equal to three percent of the Daily Scheduled

Quantity.

b. A penalty of the greater of five dollars ($5.00) or

two times the highest price receipt point for

Northwest listed in Gas Daily (or a successor

publication) shall apply to all Unauthorized Daily

Overrun or Unauthorized Daily Underrun gas for each

dekatherm that is in excess of three percent and not

greater than five percent of the Daily Scheduled

Quantity. This penalty will apply each day that

Shipper fails to comply with the OFO during the OFO

period.

c. A penalty of the greater of ten dollars ($10.00) or

four times the highest price receipt point for

Northwest listed in Gas Daily (or a successor

publication) shall apply to all Unauthorized Daily

Overrun or Unauthorized Daily Underrun gas for each

dekatherm that is in excess of five percent of the

Daily Scheduled Quantity. This penalty will apply

each day that Shipper fails to comply with the OFO

during the OFO period.