TF03      38  10004P126Original Sheet No. 38
TF04 
TF05Edward C. McMurtrie, Vice President/General Manager
TF06012705                      080105 
                            RATE SCHEDULE LGS-2
            INTERRUPTIBLE LIQUEFIED NATURAL GAS STORAGE SERVICE
                                 (Continued)
 
3.  RATES	

    Shipper shall pay Paiute each month an amount equal to the applicable
    Volumetric Charge multiplied times the average daily quantity of gas 
    held in storage during the month under this rate schedule by Paiute
    for or on behalf of Shipper.

    The Volumetric Charge shall be set forth from time to time on the
    currently effective Sheet No. 10 of this tariff which charge is
    incorporated herein by reference. Paiute may, from time to time
    and at any time selectively, adjust any or all of the rates stated
    above with respect to any individual Shipper or storage service in a
    manner which is not unduly discriminatory; provided, however, that
    such adjusted rate(s) shall not exceed the applicable maximum rate(s)
    or be less than the applicable minimum rate(s). Paiute shall file 
    with the FERC any required reports upon adjustment of a rate(s)
    pursuant to this rate schedule.

4.  MINIMUM BILL

    None.

5.  GAS USED BY PAIUTE

    Shipper shall provide its proportionate share of the Gas Used by Paiute
    in its day-to-day operations at the LNG Plant. Unless otherwise revised
    as a result of the annual audit described in Section 4.7(c)(2) of the
    General Terms and Conditions of this tariff, the daily quantity of Gas
    Used by Paiute will be determined by the following:

    5.1   LNG Liquefaction: Twenty-one percent (21%) of the quantity lique-
          fied on a given day. This factor shall not apply to LNG tendered
          for receipt into storage at the LNG truck unloading facility.

    5.2   LNG Gasified: Three percent (3%) of the quantity gasified on a
          given day.