Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Substitute Second Revised Sheet No. 101 Substitute Second Revised Sheet No. 101 : Effective

Superseding: First Revised Sheet No. 101

GENERAL TERMS AND CONDITIONS

(Continued)

13. SEGMENTATION AND BACKHAUL TRANSPORTATION(Continued)

13.2 Segmentation Without Capacity Release: (Continued)

Backhaul Transportation from either the Wadsworth Junction

or LNG Plant Receipt Points, and Paiute will schedule such

service when and to the extent that it is operationally

feasible to do so, i.e., when sufficient forward haul

quantities have been scheduled. Backhaul Transportation

is defined as any transportation of gas that is not

flowing in the same direction as gas flowing from the

Owyhee Receipt Point to the termini of the system at the

California-Nevada border. Segments nominated for Backhaul

Transportation are subject to interruption if forward haul

transportation is insufficient to provide the displacement

necessary to effectuate the Backhaul Transportation. Backhaul

Transportation transactions are considered out-of-path, and

will be scheduled on a secondary point basis, pursuant to

the scheduling provisions in Section 4 of the General Terms

and Conditions. Backhaul Transportation must be nominated

under an existing firm or interruptible Transportation Ser-

vice Agreement, and will be subject to the rates and contract

entitlement levels applicable to such agreement, except as

provided in Section 13.2(d) hereof. If any portion of the

Backhaul Transportation transaction constitutes a forward

haul (for example, from the Wadsworth Junction Receipt Point

to a Delivery Point on the Elko Lateral), then the Shipper

will be required to provide quantities of Gas Used by Paiute.

If no forward haul is involved, Shipper will not be required

to provide Gas Used by Paiute. If any additional receipt points

on the Paiute system become available for Backhaul Transporta-

tion service, Paiute will post a notice of such availability

on its Internet website within 24 hours of such availability.

(d) To the extent that Delivery Point capacity is available,

Paiute will permit a Shipper to schedule forward hauls up to

the lesser of its applicable Reserved Capacity or applicable

LCL, and backhauls up to its applicable Reserved Capacity,

to the same Delivery Point at the same time for segmented

capacity.