Paiute Pipeline Company

Second Revised Volume No. 1-A

Effective Date: 12/07/2003, Docket: RP04- 51-000, Status: Effective

Third Revised Sheet No. 104A Third Revised Sheet No. 104A : Effective

Superseding: Second Revised Sheet No. 104A

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

14.1 Definitions: (Continued)

(m) Monthly Rate: Converting a daily rate to a monthly rate is

accomplished by multiplying the daily rate times the number

of days in the rate period, dividing the result by the

number of months in the rate period, taking the remainder

out to 5 decimal places, and rounding up or down to the

transporter's specified decimal place.

(n) A Contingent Bid is defined as (i) a bid that is conditioned

upon obtaining released capacity on an upstream pipeline

system, and/or (ii) a bid that is conditioned upon the

bidder's failure to secure released capacity on Paiute's

system from another Releasing Shipper.

(o) Bidding Period is the period commencing with the posting of

an offer to release capacity and terminating upon the

specified closing time for receiving bids.

(p) Open Season: The time period allowed for posting releases

and accepting bids.

14.2 General Provisions:

(a) Any Firm Shipper (Releasing Shipper) is eligible to release

all or part of its firm flowing capacity for use by another

party (Prearranged Replacement Shipper or Replacement

Shipper) for a minimum term of one (1) day and a maximum

term not to exceed the remaining term of the Releasing

Shipper's firm service agreement. Any Replacement Shipper or

Prearranged Replacement Shipper which has previously

contracted for Released Capacity may also release the capa-

city to another party, thereby becoming the Releasing

Shipper, subject to the notification and bidding

requirements of this Section 14. Paiute will allow

re-releases on the same terms and basis as the primary

release (except as prohibited by regulations).

(b) Potential Replacement Shippers may post offers to purchase

capacity to the Electronic Bulletin Board. If an offer to

purchase results in a Capacity Release being offered, such