Paiute Pipeline Company

Second Revised Volume No. 1-A

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

First Revised Sheet No. 119 First Revised Sheet No. 119 : Effective

Superseding: Original Sheet No. 119

GENERAL TERMS AND CONDITIONS

(Continued)

16. PREGRANTED ABANDONMENT AND RIGHT-OF-FIRST-REFUSAL (Continued)

16.5 Procedures: (Continued)

existing Service Agreement may be amended to reflect the

rate and term of the winning bid(s), and service may be

continued pursuant to the amended Service Agreement.

(k) If any bid presented to the existing Shipper is for less

than the total Reserved Capacity under the existing Service

Agreement, the existing Shipper is required only to match

the Economic Value for the amount of capacity to which the

bid applies in order to retain the right to service for that

portion of the capacity. Similarly, the existing Shipper may

choose to retain only a portion of its existing Reserved

Capacity by matching the Economic Value of any bid(s)

submitted for that portion.

(l) If the existing Shipper chooses not to match the Economic

Value of the bid(s) presented to it by Paiute, Paiute will

offer the service to the winning bidder(s) under the terms

of the bid(s), if such terms are consistent with Paiute's

tariff and meet all minimum conditions established by Paiute

for acceptable bids. Such minimum conditions will be posted

by Paiute to its Electronic Bulletin Board before the

Bidding Period begins. Prior to the commencement of service,

the new Shipper(s) shall be required to execute a Service

Agreement which contains the terms of the accepted bid(s).

(m) By 12:00 p.m. (10:00 a.m. Pacific Clock Time) on the first

working day following completion of the process, Paiute

shall post the identity of the accepted Shipper and the

accepted bid to its Electronic Bulletin Board.

17. ELECTRONIC BULLETIN BOARD

17.1 Purpose:

Paiute will timely provide information pertaining to arranging for

transportation services, including informing all interested

Shippers or potential Shippers about the availability of capacity

at receipt points, on the mainline, at delivery points, and

whether the capacity is available from the pipeline directly or

through capacity releasing. Paiute will also maintain and provide

access to bidding information pertaining to released