Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Sixth Revised Sheet No. 89 Sixth Revised Sheet No. 89 : Effective

Superseding: Fifth Revised Sheet No. 89

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.3 Balancing: (Continued)

(e) Paiute shall waive any penalty payments that may otherwise be

due pursuant to this Section 5.3 for any imbalance caused by

an event of force majeure, as defined in Section 6.1 of the

General Terms and Conditions of this tariff, occurring on

Paiute's system, occurring on Shipper's system, or occurring

on the transmission or gathering system of a third party, and

which interferes with the receipt or delivery by Paiute of

Shipper's gas. In addition, Paiute will waive any such penal-

ty payments otherwise due from interruptible shippers and

capacity release Replacement Shippers whose scheduled gas is

bumped during a non-critical period, for the day of the bump.

(f) Shipper Imbalance Netting: A Shipper may net its imbalances

between its service agreements, provided that Paiute will be

reimbursed for any difference in transportation revenues

that may result from such netting. Where a netting trans-

action results in an overpayment of transportation revenues

to Paiute, Paiute will credit or refund the amount of the

overpayment to the Shipper.

(g) Shipper Imbalance Trading: A Shipper may trade imbalances

with another Shipper, provided that the Shipper with an

imbalance resulting from deliveries by Paiute in excess of

scheduled receipts from Shipper will reimburse Paiute for

any difference in transportation revenues that may result

from such trading. Where an imbalance trading transaction

results in an overpayment of transportation revenues to

Paiute, Paiute will credit or refund the amount of the over-

payment to the Shipper who made the overpayment. Any trading

of Shipper imbalances must result in each Shipper's imbalance

decreasing, but not beyond a zero imbalance level.

(1) All imbalance trading will be conducted through

Paiute's Electronic Bulletin Board or Internet Web

Site. If a Shipper desires to trade an imbalance, such

Shipper must consent to Paiute's release of necessary

information regarding the imbalance.

(2) Shippers that trade imbalances are responsible for

making whatever arrangements they deem necessary to

finalize and document the imbalance trade between them.

(3) Paiute will not be responsible for eliminating any

imbalances between Shipper and any third party.

Furthermore, Paiute will not be obligated to adjust or

deviate from its standard operating and accounting

procedures in order to alleviate any such imbalances.