TF03      35  10004P126Original Sheet No. 35
TF04              
TF05Edward C. McMurtrie, Vice President/General Manager
TF06012705                      080105  
                            RATE SCHEDULE LGS-2
            INTERRUPTIBLE LIQUEFIED NATURAL GAS STORAGE SERVICE


1.  AVAILABILITY

    This rate schedule is available on a first-come, first-served basis
    as provided herein to any party (herein called "Shipper") for the
    liquefaction, storage and gasification of natural gas by Paiute
    Pipeline Company (herein called "Paiute") at Paiute's liquefied 
    natural gas facility near Lovelock, Nevada (herein called "LNG Plant")
    for delivery to Paiute's pipeline system for transportation to 
    Shipper's Delivery Point(s) on Paiute's system under the following
    conditions:

    1.1   Paiute has determined that it has available capacity to render
          the requested service without construction of any additional
          facilities and without impairing service to Paiute’s Shippers
          receiving firm services under other rate schedules of this 
          tariff;

    1.2   Shipper receives service on Paiute's system under a transpor-
          tation rate schedule in this tariff; and

    1.3   Shipper and Paiute have executed a Service Agreement in the form
          contained in this tariff for service under this rate schedule.

2.  APPLICABILITY AND CHARACTER OF SERVICE

    This rate schedule shall apply to the interruptible liquefied natural 
    gas storage service rendered by Paiute to Shipper pursuant to the 
    executed Service Agreement.

    2.1   The basic service rendered under this rate schedule shall consist
          of the following, which shall be provided by Paiute on an
          interruptible basis:

          (a) The receipt and liquefaction by Paiute, less Gas Used by 
              Paiute pursuant to Section 5 hereof, for the account of
              Shipper of Shipper's natural gas tendered to the inlet of
              Paiute's LNG Plant;

          (b) The receipt of liquefied natural gas (herein called "LNG")
              for the account of Shipper tendered to the LNG truck unload-
              ing facility at Paiute's LNG Plant;

          (c) The storage of the LNG at Paiute's LNG Plant for the account
              of Shipper in quantities not to exceed Shipper's applicable
              Storage Capacity under this rate schedule;