Paiute Pipeline Company

Second Revised Volume No. 1-A

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

First Revised Sheet No. 86 First Revised Sheet No. 86 : Effective

Superseding: Original Sheet No. 86

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.3 Balancing: (Continued)

Point(s) quantities in excess of the quantities scheduled

by Shipper at the Receipt Point(s). Paiute will monitor,

to the best of its ability, amounts scheduled and amounts

taken by Shipper, and based upon information available, notify

Shipper of any imbalance situation which has occurred or may

occur unless corrective action is taken. Upon notification,

Shipper shall be obligated to adjust amounts scheduled and

amounts taken to correct or avoid any imbalance. Any adjust-

ment to amounts scheduled and amounts taken by Shipper,

whether or not pursuant to notification from Paiute, shall be

coordinated with Paiute's gas dispatchers and shall be in

accordance with Paiute's scheduling procedures. In order to

balance quantities scheduled and quantities taken by Shipper

pursuant to the executed Service Agreement with Shipper,

Paiute shall not be obligated to accept quantities of gas for

the account of Shipper or deliver gas to Shipper at points

other than as originally scheduled by Shipper and accepted by

Paiute pursuant to said Service Agreement.

day Shipper fails to control amounts scheduled versus amounts

taken by Shipper at the Delivery Point(s) in accordance with

Section 5.3(b) hereof, to the extent that an imbalance accrues

on such day, the following procedures shall be implemented: