Paiute Pipeline Company

Second Revised Volume No. 1-A

 Contents / Previous / Next / Main Tariff Index

Effective Date: 12/09/2003, Docket: RP04- 51-003, Status: Effective

Substitute Original Sheet No. 101A Substitute Original Sheet No. 101A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

13. SEGMENTATION AND BACKHAUL TRANSPORTATION(Continued)

13.3 Segmentation With Capacity Release:

To the extent operationally feasible, a Shipper from time to time

may segment its capacity up to the lesser of its applicable

Reserved Capacity or applicable LCL in any segment, and release

one or more of such capacity segments to a Replacement Shipper.

A Shipper subject to an LCL may nominate transportation quantities

in excess of its LCL, up to its applicable Reserved Capacity, on a

secondary firm basis. If primary firm capacity is available,

Shipper may amend its Service Agreement to increase any applicable

LCL on a primary basis up to its applicable Reserved Capacity

by reducing its primary firm rights on a different lateral to an

equivalent extent.

(a) For each segment that is released, the Releasing Shipper

must identify the primary Receipt Point and primary

Delivery Point entitlements that it will retain and the

primary Receipt Point and primary Delivery Point entitle-

ments that it will release; provided, however, that a

Releasing Shipper may not retain entitlements at a primary

Receipt Point or a primary Delivery Point if such point can-

not be accessed by the primary capacity pathway rights that

it retains. Entitlements at Receipt and Delivery Points that

are not primary points in Releasing Shipper's original ser-

vice agreement will be secondary firm, except to the extent

that Paiute determines that physical capacity is available

at such point(s).

(b) For each segment that is acquired, the Replacement Shipper

must have Receipt Point and Delivery Point entitlements

that are no greater than its Daily Reserved Capacity.