TF03   63A.10000005P126First Revised Sheet No. 63A.1
TF04 			  Original Revised Sheet No. 63A.1              
TF05Edward C. McMurtrie, Vice President/General Manager
TF06112904110304              010106
TF0710961139
                    GENERAL TERMS AND CONDITIONS
                             (Continued)


4.	OPERATING PROCEDURES (Continued)

	4.2	Scheduling of Gas Receipts and Deliveries: (Continued)

		(e)	Gas Used by Paiute under Rate Schedules FT-1 and IT-l:

			(1)	Paiute's dispatcher shall notify each Shipper not later than 
				five (5) days prior to the start of each month of the 
				quantity (percentage) of gas Shipper must cause to be 
				tendered for Paiute's use during the month. Gas Used by 
				Paiute shall be expressed as a percentage of the quantities 
				that Shipper schedules for receipt by Paiute at the Receipt 
				Point(s).  Paiute shall establish the percentage based on 
				prior months' actual average daily usage, as adjusted for 
				any over- or under-retention of such quantities of Shippers' gas 
				which occurred during such prior months.  Paiute shall have 
				the right to adjust the percentage to reflect the actual 
				quantity of Gas Used by Paiute, so as not to create an 
				imbalance on Paiute's system. 

				In the interests of minimizing any volatility in the monthly 
				percentages of Gas Used by Paiute and providing some degree 
				of predictability for Shippers' gas acquisition planning 
				purposes, Paiute will use the following parameters in 
				establishing the monthly percentages of Gas Used by Paiute.  
				For the months of October through March, inclusive, the 
				average of the six monthly percentages of Gas Used by Paiute 
				shall be no less than 0.8% and no greater than 2.4%; for the 
				months of April through September, inclusive, the average of 
				the six monthly percentages of Gas Used by Paiute shall be no 
				less than 0.65% and no greater than 1.95%; provided, however, 
				that the average of the six monthly percentages of gas Used 
				by Paiute may deviate from the above-prescribed seasonal 
				ranges if (1) Paiute deems it necessary in order to avoid 
				exacerbating its over- or under-retention of Gas Used by 
				Paiute or an imbalance between Paiute's system and an 
				upstream pipeline system, and (2) Paiute first confers with 
				its affected firm shippers and explains in detail the reasons 
				for such deviation.  In no event will the percentage for any 
				month exceed 3.0%.  

			(2)	On or before October 25 of each year, Paiute will provide to 
				each firm Shipper a report presenting the following 
				information for each of the prior twelve (12) calendar months: