Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 09/01/2005, Docket: RP05-485-000, Status: Effective

Original Sheet No. 89A.1 Original Sheet No. 89A.1 : 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:

(a) Overrun and underrun, scheduling and balancing penalties

will be levied by Paiute against the Shipper who controls

the facilities into which gas is delivered. If the Shipper

is receiving transportation on one or more agreements with

Paiute, all imbalances will be on that agreement with the

Shipper which is last in the determination of delivery

categories, as per Section 4.4 of the General Terms and

Conditions of this tariff, unless otherwise agreed upon by

the parties.

(b) Overrun and underrun, scheduling and balancing penalties

will be assessed in addition to all otherwise applicable

charges under Rate Schedules FT-1, IT-1 and LGS-1. In the

event that more than one of the penalties specified in

Sections 5.1, 5.2 and 5.3(c) of the General Terms and

Conditions are applicable to the same volume of gas, Paiute

shall assess only one penalty, which shall be the highest

of such applicable penalties, upon such gas. No imbalance

penalty should be imposed when a prior period adjustment

applied to the current period causes or increases a current

monthly penalty.

ed by Paiute pursuant to Sections 5.1(c), 5.2(a), and 5.3(c)

of the General Terms and Conditions of this tariff will be

credited to Shippers receiving service under Rate Schedules

FT-1 and IT-1. Paiute shall net against such penalty revenue

amounts that it must pay to an upstream pipeline for penalties

assessed to Paiute arising from a restricted entitlement or

cumulative imbalance period as described in Sections 5.2(b)

and 5.3(d) where Paiute would have collected penalties under

Section 5.2(b) and/or 5.3(d) but for the application of

Section 5.4(b). The credits will be allocated pro rata

based on the total revenues received from each Shipper