Paiute Pipeline Company

Second Revised Volume No. 1-A

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

Second Revised Sheet No. 75 Second Revised Sheet No. 75 : Effective

Superseding: First Revised Sheet No. 75








4.7 Operating Procedures for Rate Schedule LGS-1 Service: (Continued)


(3) Subject to Section 4.10 hereof, Shipper shall be solely

responsible for maintaining its inventory of LNG. Paiute

will not permit a Shipper's inventory balance to become

negative at any time. Paiute will be permitted to use

Shipper's inventory as Paiute determines necessary in

the operation of its pipeline system, but only under

the following conditions:


a. Paiute has declared a Catastrophic Capacity Failure

or a Catastrophic Supply Failure, or deems the with-

drawal of LNG necessary to protect system integrity;



b. Paiute has issued an Operational Flow Order (OFO) due

to drafting on its system and the party(s) subject

to said OFO has available inventory and, in Paiute's

sole, good faith judgment, is in non-compliance with

said OFO.


Paiute will control the withdrawal of LNG inventory to

provide adequate boil-off from the LNG Plant until the

commencement of the next Summer Period. These restric-

tions on the use by Shipper of its inventory shall not

prohibit the transfer of the inventory among the Ship-

pers, as provided in Section 4.7(c)(4) hereof.


If Paiute withdraws LNG pursuant to (a) above, to the

extent such LNG is utilized for the benefit of a Non-LNG

Customer, Paiute will give the appropriate LNG Customer

a credit against its Storage and Delivery Charges equal

to the amount calculated by multiplying the volumes of

LNG withdrawn for the Non-LNG Customer times the Annual

Storage and Delivery Charges which otherwise would have

been paid by the LNG Customer, including gas used by

Paiute to liquefy and gasify such replacement gas, in

the amounts specified in Section 5 of Rate Schedule

LGS-1 of this tariff. For the purposes of this section,

an LNG Customer which has previously exhausted its

inventory of LNG shall be deemed a Non-LNG Customer.