Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Second Revised Sheet No. 84 Second Revised Sheet No. 84 : Effective

Superseding: Irst Revised Sheet No. 84

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.2 Restricted Entitlement Events: (Continued)

(3) For each day of an overrun entitlement period, any

quantity taken by Shipper in excess of its Daily

Scheduled Quantity shall constitute an Unauthorized

Daily Overrun, and shall be subject to a penalty,

but only in the event that Paiute has been assessed

penalties by the upstream pipeline for the Declared

or Restricted Entitlement Period. In such event,

Paiute shall recover from its Shippers an amount of

penalty revenues equal to the amount that Paiute has

been assessed by the upstream pipeline. Paiute shall

allocate such penalty amount among its Shippers on a

pro rata basis, based upon each Shipper's total

Unauthorized Daily Overrun quantity for the entitle-

ment period compared to the total of all Shippers'

Unauthorized Daily Overrun quantities for the entitle-

ment period.

(4) For each day of an underrun entitlement period, any

quantity taken by Shipper that is less than its

Daily Scheduled Quantity shall constitute an Unauthorized

Daily Underrun, and shall be subject to a penalty, but

only in the event that Paiute has been assessed

penalties by the upstream pipeline for the Declared

or Restricted Entitlement Period. In such event, Paiute

shall recover from its Shippers an amount of penalty

revenues equal to the amount that Paiute has been

assessed by the upstream pipeline. Paiute shall allocate

such penalty amount among its Shippers on a pro rata

basis, based upon each Shipper's total Unauthorized Daily

Underrun quantity for the entitlement period compared to

the total of all Shippers' Unauthorized Daily Underrun

quantities for the entitlement period.