NOTICE TO SHIPPERS AND CUSTOMERS

 

Potential Monthly Cumulative Imbalance Penalties

 

January 11, 2008

 

Paiute Pipeline has received notification from Northwest Pipeline that Paiute’s positive  cumulative imbalance with Northwest has exceeded the greater of 5000 Dth or 5% of total confirmed nominations at the end of December 2007, as described in section 15.3 of Northwest’s FERC Gas Tariff, Third Revised Volume No.1.  Paiute’s imbalance with Northwest must be reduced to a level that is within the 5% tolerance range by February 29, 2008.  However, because Northwest Pipeline was not allowing any off-system balancing in December, and had entitlements on its system, Paiute Pipeline has 31 additional days from February 29, 2008 to work off the imbalance.  In the event that Paiute is not able to bring the cumulative imbalance into tolerance, Paiute and its shippers will be subject to penalty charges.

 

During this period, shippers should make every effort to reduce their positive cumulative imbalance with Paiute.  In addition, shippers also should make every effort to take delivery of all gas that they schedule for transportation. 

 

Any changes in the above information will be passed along to Paiute's customers immediately. Any questions regarding this information may be directed to Mark Anderson, Paiute Pipeline Scheduling, (702) 876-7332.