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TF03      370000004P126Substitute Original Sheet No. 37
TF04               
TF05Edward C. McMurtrie, Vice President/General Manager
TF06122105113005RP05-163-000, et al.080105
TF0711361222
                            RATE SCHEDULE LGS-2
            INTERRUPTIBLE LIQUEFIED NATURAL GAS STORAGE SERVICE
                                (Continued)


    2.3  Limitations on Availability of Service. Interruptible service 
         under this rate schedule shall only be available to the extent
         that the injection, storage and withdrawal capacity designated 
         for Rate Schedule LGS-1 firm service is not being utilized for
         such firm service. In particular, Storage Capacity for service
         under this rate schedule shall be available only to the extent
         that requests by Rate Schedule LGS-1 Shippers for utilization      
         of such capacity have not been scheduled pursuant to the pro-
         visions of Section 4.7(a) of the General Terms and Conditions 
         of this tariff.

    2.4  Mandatory Gasification and Withdrawal. Unless otherwise permitted
         by Paiute, Shipper must gasify and withdraw from storage all vol-
         umes held in storage for or on behalf of Shipper under this rate
         schedule prior to April 1 of each year. In addition, if Paiute
         determines that storage capacity being utilized hereunder by 
         Shipper is needed to meet Paiute(s firm obligations under Rate 
         Schedule LGS-1, Paiute shall require Shipper to gasify and with-
         draw all volumes held in storage under this rate schedule by
         Paiute for or on behalf of Shipper within seven days; provided,
         however, if Shipper has arranged for transportation of its gas 
         from the LNG Plant under a Rate Schedule FT-1 agreement and Paiute
         is unable to provide such related transportation, then such seven
         day period shall be extended by one day for each day Paiute is 
         unable to render such transportation. Paiute shall not extend
         the seven day period if Paiute is unable to provide the related
         transportation under a Rate Schedule IT-1 agreement. If Shipper
         fails to gasify and withdraw all gas held in storage under this 
         rate schedule by Paiute for or on behalf of Shipper prior to 
         April 1 or within seven days upon receiving notice from Paiute,
         then title to any such remaining gas in storage shall be forfeited
         by Shipper, free and clear of any adverse claims. Such remaining
         gas in storage shall be treated by Paiute thereafter as Gas Used
         by Paiute, and shall be credited to the calculation of Gas Used 
         by Paiute under Rate Schedules FT-1 and IT-1 and Section 4.2(e)
         of the General Terms and Conditions of this tariff. Paiute
         shall be entitled to refuse to perform service under this rate
         schedule when Shipper cannot demonstrate to Paiute(s satisfaction
         that Shipper will have the ability to remove quantities of LNG 
         stored under this rate schedule when Shipper is requested to do so
         under this Section 2.4.
 


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