Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 02/25/2009, Docket: RP09-272-000, Status: Effective

Fifth Revised Sheet No. 113 Fifth Revised Sheet No. 113

Superseding: Fourth Revised Sheet No. 113

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

14.3 Short-Term Releases (one year or less): (Continued)

* match response by 2:30 p.m. (12:30 p.m. Pacific

Clock

Time);

* where match required, award posting by 3:00

p.m. (1:00

p.m. Pacific Clock Time);

* contract issued within one hour of award

posting (with a

new contract number, when applicable);

nomination possi-

ble beginning at the next available nomination

cycle for

the effective date of the contract.

The above time periods represent the latest

deadlines for

the actions described. A Releasing Shipper may

specify a

longer open season for bidding, so long as the

above

deadlines are not exceeded.

14.4 Long-Term Releases (more than one year):

(a) Prearranged Releases Not Subject to Bid:

Where a Releasing Shipper and a Prearranged

Replacement Shipper have negotiated a capacity

release for a term of more than one year, the release

may be effected without having to comply with the

notification and bidding requirements of this Section

14, if (1) the release is to an asset manager, as

defined in Section 284.8 of the Commission's

Regulations, (2) the release is to a marketer

participating in a state-regulated retail access

program, as defined in Section 284.8 of the

Commission's Regulations, or (3) the Prearranged

Replacement Shipper has agreed to pay the applicable

maximum reservation charge. Such a release will be

posted to the Electronic Bulletin Board by Paiute,

using the Posting Form for No-Bid Release

Transactions contained in Section 25 of the General

Terms and Conditions of this Tariff, as soon as

possible, but not later than the first nomination,

after the release transaction commences. Such

release will be subject to the timeline below.

Releasing Shipper and Prearranged Replacement Shipper

must comply with Sections 14.2(i), (j) and (q)

herein. The Posting Form for No-Bid Release

Transactions shall constitute an amendment to both

the Service Agreement between Releasing Shipper and

Paiute and the Service Agreement between Prearranged

Replacement Shipper and Paiute, reflecting the

release of capacity. By submitting the Posting Form

for No-Bid Release Transactions, Releasing Shipper

warrants that it has entered into a binding contract

with a Prearranged Replacement Shipper on terms

consistent with those identified on the Posting Form.

The following posting and notification procedures

shall apply to a release under this Section 14.4(a):