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. 110 Third Revised Sheet No. 110 : Effective

Superseding: Second Revised Sheet No. 110

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

14.2 General Provisions: (Continued)

(o) Bids will be binding until written or electronic notice of

withdrawal is received by Paiute and cannot be withdrawn

after the bid period ends.

(p) A bid may be withdrawn prior to the end of the Bidding

Period. A Shipper may submit a new bid to replace the with-

drawn bid only if the Economic Value of the new bid exceeds

the Economic Value of the withdrawn bid.

(q) Paiute will provide service to a Replacement Shipper or a

Prearranged Replacement Shipper pursuant to an executed

Service Agreement. Replacement Shipper must execute a

Service Agreement prior to submitting a bid, which will

include all provisions except for provisions related to

price, term, receipt point, delivery point and contract

demand. Paiute's accepted Bid Form to Acquire Firm Capacity

will constitute an exhibit to the Service Agreement between

Paiute and the Replacement Shipper or Prearranged

Replacement Shipper. The Request Form for Release of Firm

Capacity, along with Paiute's accepted Bid Form to Acquire

Firm Capacity, shall also constitute an amendment to the

Service Agreement between Releasing Shipper and Paiute,

reflecting the release of capacity.

(r) Paiute may assess a marketing fee to a Releasing Shipper, if

agreed upon by both Paiute and Releasing Shipper, pursuant

to a separately-negotiated marketing contract, for marketing

services to be performed by Paiute.

(s) All terms of Capacity Release transactions between Paiute,

Releasing Shipper and Replacement Shipper or Prearranged

Replacement Shipper, must be agreed to through the public

notification and posting procedures as specified herein.

Except as otherwise provided in this Tariff, any exceptions

to this policy shall result in the immediate invalidation of

the Capacity Release transaction.

(t) In the event that the condition(s) underlying a contingent

bid is not fulfilled, then the bid shall be deemed null and

void, and the released capacity will be awarded to the next

highest bidder.