Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/01/1997, Docket: RP97-136-001, Status: Effective

Third Revised Sheet No. 103 Third Revised Sheet No. 103 : Effective

Superseding: Second Revised Sheet No. 103

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE

14.1 Definitions:

For the purposes of this Section 14, the following definitions

will apply to capacity releases.

(a) Recall Right: A right retained by a Releasing Shipper to

reacquire its capacity from the Replacement Shipper for a

specified period of time. If the Releasing Shipper wishes to

recall capacity to be effective for a gas day, the notice

should be provided to the transportation service provider

and the acquiring shipper no later than 8:00 a.m. Central

Clock Time (6:00 a.m. Pacific Clock Time) on Nomination Day.

(b) Releasing Shipper: A Firm Shipper or Replacement Shipper

under an executed Service Agreement subject to Part 284 of

the Commission's Regulations who intends to have Paiute post

to the Electronic Bulletin Board all or any portion of its

firm service to be released to a Replacement Shipper, or to

a Prearranged Replacement Shipper through a prearranged

Capacity Release transaction, or which has released firm

service.

(c) Replacement Shipper: A Shipper which has contracted for

service with Paiute subject to Part 284 of the Commission's

Regulations to utilize a Releasing Shipper's released firm

service for a specified period of time. Replacement Shippers

must meet all of the terms and conditions of Paiute's tariff

as required of any other Shipper.

(d) Reput Right: A right retained by a Releasing Shipper to re-

institute a capacity release to the Replacement Shipper

previously awarded capacity which has been recalled without

posting. Reput method and rights should be specified at the

time of the deal. Reput method and rights are individually

negotiated between the Releasing Shipper and Replacement

Shipper.

(e) Potential Replacement Shipper: A Shipper which desires to

acquire released firm capacity.

(f) Prearranged Replacement Shipper: A party who desires to

contract directly for or who has contracted directly for

capacity which is subject to Part 284 of the Commission's

Regulations and who has agreed to the terms of a capacity