Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Substitute Original Sheet No. 102A Substitute Original Sheet No. 102A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

13. SEGMENTATION AND BACKHAUL TRANSPORTATION(Continued)

13.4 Pre-Scheduling Adjustments to Nominations: (Continued)

(b) If the combined total of Releasing and Replacement Shippers'

nominations for any portion of Paiute's system exceed

Releasing Shipper's pre-release applicable Reserved Capac-

ity, nominations will be reduced to equal such applicable

Reserved Capacity in accordance with (1) and (2) below:

(1) Within-the-path nominations will have a higher

priority than out-of-path nominations.

(2) To the extent that the combined total of Releasing and

Replacement Shippers' out-of-path nominations for any

portion of Paiute's system exceed Releasing Shipper's

pre-release applicable Reserved Capacity, both the

Releasing Shipper's and the Replacement Shipper's

nominations will be reduced on a pro rata basis, based

on each Shipper's nominations, so that the combined

nominations are equal to the Releasing Shipper's pre-

release applicable Reserved Capacity.

(c) The above nominations are subject to further reduction by

any applicable LCL contained in Shipper's original Service

Agreement.

13.5 For purposes of this Section 13, the term "applicable Reserved

Capacity," when used herein to refer to Shipper's capacity rights

on the portion of Paiute's system between the Owyhee Receipt

Point and the LNG Plant, may not exceed Shipper's Daily Reserved

Capacity less its Rate Schedule LGS-1 Daily Delivery Capacity.