TF03      620050005P126Fifth Revised Sheet No. 62
TF04                Fourth Revised Sheet No. 62
TF05Edward C.  McMurtrie, Vice President/General Manager
TF06093098071598RM96-1-008          110298
                   GENERAL TERMS AND CONDITIONS
                           (Continued)


4.  OPERATING PROCEDURES (Continued)

    4.2  Scheduling of Gas Receipts and Deliveries: (Continued)

                    (1) Confirmation Requester in a Confirmation Response (or
                    unsolicited Confirmation Response as applicable) document
                    by the Confirming Party, (2) Confirming Party in a Request
                    for Confirmation document by the Confirmation Requester,
                    (3) Service Requester(s) in a Scheduled Quantity document
                    by the applicable Confirming Party or Confirmation
                    Requester on whose system the Service Requester(s)
                    Nomination(s) were made.

                    Applicable notification(s) of such alterations should be
                    provided to the affected parties reasonably proximate in
                    time to the time during which the event causing the
                    alteration was acted upon by the Confirmation Requester
                    or Confirming Party, respectively. With respect to the
                    implementation of this process via the 1.4.X standards,
                    Confirming Parties should send the applicable document(s)
                    to the applicable party(ies) no later than the next time
                    they are slated to communicate confirmations or scheduled
                    quantities (as applicable).

         (b)  Intra-day Nominations:  Intra-day Nominations may be used to
              nominate new supply or market. Paiute will accept Nomination
              changes after the start of the day on which transported gas is
              being delivered, subject to available pipeline capacity, supply
              availability and upstream/downstream pipeline confirmation,
              and providing that confirmed commitments for delivery of gas
              to other Shippers will not be adversely affected. All
              Nominations, including Intra-day Nominations, will be based
              on a daily quantity; thus, an Intra-day nominator need not
              submit an hourly Nomination. Intra-day Nominations will
              include an effective date and time. The interconnected
              parties must agree on the hourly flows of the Intra-day
              Nomination, if not otherwise addressed in Paiute's contract
              or tariff. Intra-day Nominations can be used to request
              increases or decreases in total flow, changes to receipt
              points or changes to delivery points of scheduled gas.

              Intra-day Nominations do not roll over (i.e., Intra-day 
              Nominations span only one day). Intra-day Nominations do not
              replace the remainder of a standing Nomination. There is no