Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 09/01/2005, Docket: RP05-485-000, Status: Effective

Second Revised Sheet No. 109 Second Revised Sheet No. 109 : Effective

Superseding: First Revised Sheet No. 109

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

14.2 General Provisions: (Continued)

Tariff to the extent that any Replacement Shipper fails to

pay any applicable reservation charge to Paiute.

Paiute will provide the original Releasing Shipper with

Internet e-mail notification reasonably proximate in time

with any of the following formal notices given by Paiute

to the Releasing Shipper's Replacement Shipper(s), of the

following:

(1) Notice to the Replacement Shipper regarding the

Replacement Shipper's past due, deficiency, or default

status pursuant to Paiute's tariff;

(2) Notice to the Replacement Shipper regarding the

Replacement Shipper's suspension of service notice;

(3) Notice to the Replacement Shipper regarding the

Replacement Shipper's contract termination notice due

to default or credit-related issues; and

(4) Notice to the Replacement Shipper that the Replacement

Shipper(s) is no longer creditworthy and has not

provided credit alternative(s) pursuant to Paiute's

tariff.

Where capacity has been permanently released for the maximum

term at the maximum rate by the Releasing Shipper, the

Releasing Shipper may request Paiute to amend its

Transportation Service Agreement to reflect the release of

such capacity. Paiute may agree, in a non-discriminatory

manner, to relieve such Shipper of any further liability for

payment of the reservation charge applicable to the capacity

released under the Transportation Service Agreement.

(k) When Paiute makes awards of capacity for which there have

been multiple bids meeting minimum conditions, Paiute will

award the bids, best bid first, until all offered capacity

is awarded.