Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 12/01/2002, Docket: RP00-402-003, Status: Effective

Original Sheet No. 89B Original Sheet No. 89B : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

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

5.4 Overrun and Underrun, Scheduling and Balancing Penalties, General

Provisions: (Continued)

under Rate Schedules FT-1 and IT-1 during the calendar year,

excluding revenues from ACA surcharges, compared to the

total revenues received from all Shippers under Rate Sched-

ules FT-1 and IT-1 during the calendar year, excluding

revenues from ACA surcharges. Penalty revenue credits will

be allocated only to those Shippers that were not assessed

penalties on the day(s) for which such penalty revenues are

to be credited. Penalty revenue credits will be reflected

as a credit billing adjustment to each March billing for

credits accrued during the prior calendar year.

5.5 Penalty Payment for Unauthorized Overrun and Underrun and Failure

to Balance:

This Section 5 providing for a penalty payment for unauthorized

overrun or underrun and failure to balance shall under no cir-

cumstances be considered as giving Shipper any right to overrun

or underrun or to maintain imbalances of receipts and deliveries,

nor shall such provision or payment be considered as a substitute