Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 12/09/2003, Docket: RP04- 51-001, Status: Effective

Original Sheet No. 100A Original Sheet No. 100A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

13. SEGMENTATION AND BACKHAUL TRANSPORTATION (Continued)

13.2 Segmentation Without Capacity Release: (Continued)

(b) A Shipper that wishes to segment its capacity into separate

parts for its own use is subject to the same procedures as

apply to the temporary capacity release of segmented capacity

under Sections 14 and 15 of the General Terms and Conditions

hereof, except that the Shipper's release of capacity to itself

will not be biddable. Such transactions will be treated as

temporary capacity releases with the Shipper acting as both

the Releasing Shipper and the Replacement Shipper. New ser-

vice agreements will be executed with the Shipper for all new

segments. Each Transportation Service Agreement created as a

result of segmentation will be effective for a specified

period of time. Subject to the provisions of Section 13.2(a),

each such agreement will identify (1) a Receipt Point and a

Delivery Point, with specified maximum daily quantities that

may not exceed Shipper's applicable Reserved Capacity for the

segment, and (2) whether, and to what extent, the capacity

rights at each point are primary or secondary firm in nature.

Shipper's service at each Receipt or Delivery Point will be

primary firm only if (1) that point is designated as a primary

point in the new segment transportation contract, and (2) only

to the extent capacity is available at the point on a primary

basis. To the extent primary firm point capacity is not

available, Shipper may obtain secondary firm point rights,

which are subject to the scheduling priority provisions set

forth in Section 4 of the General Terms and Conditions of

this tariff. Shipper will have the right to use any available

alternate Receipt and Delivery Points on a secondary firm

basis, provided that Shipper's total nominations for any

segment cannot exceed Shipper's applicable Reserved Capacity

under its agreement.