Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 12/09/2003, Docket: RP04- 51-001, Status: Effective

Substitute Second Revised Sheet No. 102 Substitute Second Revised Sheet No. 102 : Effective

Superseding: First Revised Sheet No. 102







13.3 Segmentation With Capacity Release: (Continued)


Such Replacement Shipper may utilize the primary Receipt

Point and/or primary Delivery Point entitlements that are

being relinquished by the Releasing Shipper or may select

other Receipt Points and/or Delivery Points, where Replacement

Shipper's entitlements will be secondary firm except to the

extent that Paiute determines that primary firm capacity is

available at such points. Replacement Shipper's service at each

Receipt or Delivery Point will be primary firm only if (1) that

point is designated as a primary point in the Replacement

Shipper's transportation contract, and (2) only to the extent

capacity is available at the point on a primary basis. To the

extent primary firm point capacity is not available, Shipper

may obtain secondary firm point rights, which are subject to

scheduling priority provisions set forth in Section 4 of the

General Terms and Conditions of this tariff.


(c) Both Releasing and Replacement Shippers may nominate to

secondary Receipt and/or Delivery Points anywhere on Paiute's

system; provided, however that the combined total of Releas-

ing Shipper's and Replacement Shipper's nominations for any

portion of Paiute's system cannot exceed Releasing Shipper's

pre-release applicable Reserved Capacity.


(d) All segmented releases are subject to the capacity release

provisions contained in Sections 14 and 15 of the General

Terms and Conditions. New service agreements will be executed

with the Releasing Shipper for the retained segment(s) and the

Replacement Shipper for the released segment.


(e) A Releasing Shipper or Replacement Shipper using segmented

capacity for Backhaul Transportation will be subject to the

same provisions as Section 13.2(c) and (d).


13.4 Pre-Scheduling Adjustments to Nominations:


Before any nominations for segmented capacity are confirmed for

scheduling in accordance with Section 4.2 of the General Terms

and Conditions, Paiute will adjust such nominations, if necessary,

as follows:


(a) If a Shipper's nominations exceed its applicable Reserved

Capacity on any portion of Paiute's system, nominations

will be reduced to equal such Shipper's applicable Reserved

Capacity, using the rankings provided by Shipper among its

various packages of gas supplies, where applicable.