Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 11/01/1993, Docket: RS92- 75-004, Status: Effective

Original Sheet No. 96 Original Sheet No. 96 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

9. WARRANTY OF TITLE

9.1 Warranty:

Paiute accepts Shipper's gas at the Receipt Point subject to the

understanding that Shipper warrants that it will at the time of

delivery of gas to Paiute for transportation have good title to

all gas so delivered to Paiute, free and clear of all liens,

encumbrances and claims whatsoever, that it will at such time of

delivery have the right to deliver such gas to Paiute, and that

it will indemnify Paiute and hold Paiute harmless from all

adverse claims of any and all persons to such gas.

Subject to the foregoing, Paiute warrants that it will at the

time of delivery of the transported gas to Shipper at the Deliv-

ery Point(s) have the right to deliver said gas free and clear of

all liens, encumbrances and claims whatsoever, and that it will

indemnify Shipper and hold Shipper harmless from all adverse

claims of any and all persons to such gas.

9.2 Buy/Sell:

Buy/Sell arrangements are those in which Shipper takes title to

natural gas upstream of Paiute's receipt point in a transaction

with a third party with the understanding and commitment that

after the gas has been transported on Paiute's system and deliv-

ered to Shipper at the delivery point, such gas will be returned

to the third party and title to the gas reconveyed to the third

party. All buy/sell arrangements existing on the date Paiute's

capacity releasing mechanism goes into effect will be grand-

fathered. Shipper warrants that the gas which it tenders for firm

transportation will not be acquired by Shipper under buy/sell

arrangements executed after the date Paiute's capacity release

mechanism goes into effect. Further, at such date Shipper shall

identify existing grandfathered buy/sell arrangements, underlying

its Firm Service Agreements with Paiute, and provide such infor-

mation to Paiute for posting on its bulletin board pursuant to

Section 18 of these General Terms and Conditions.