TF03     63B.1  2  05P126Original Sheet No. 63B.1
TF04            
TF05Edward C. McMurtrie, Vice President/General Manager
TF06122106			    010106
          
          GENERAL TERMS AND CONDITIONS
                           (Continued)


4.	OPERATING PROCEDURES (Continued)

	4.2	Scheduling of Gas Receipts and Deliveries: (Continued)

			(3)	When the fuel reimbursement method is fuel in-kind, the 
				results of the fuel reimbursement (Gas Used by Paiute) 
				calculations for the Nomination process should be rounded to 
				the nearest Dth or Gigajoule (Canada).  Where fuel 
				reimbursement is in-kind, the standard fuel (Gas Used by 
				Paiute) calculation mechanism, as this is related to the 
				Nomination process, should be (1-Fuel %/100) multiplied by 
				receipt quantity = delivery quantity. 

				For current in-kind fuel reimbursement procedures, fuel rates 
				should be made effective only at the beginning of the month.  
				For in-kind fuel reimbursement methods, Service Providers 
				should not reject a nomination for reasons of rounding 
				differences due to fuel calculation of less than 5 Dth. For 
				in-kind fuel reimbursement methods, Service Providers 
				should provide, if applicable, a fuel matrix for receipt and 
				delivery point combinations. The Service Requesters should 
				not be responsible for calculating and totaling fuel based on 
				each zone or facility traversed. The transportation priority 
				for fuel should be the same as the level of service as the 
				transaction to which it applies.

		(f)	In the event sufficient capacity is not available to schedule all
			requests for interruptible service, Paiute shall interrupt first 
			all interruptible service which is being provided a discount from 
			the maximum rate applicable to such service by the rate being 
			paid, from lowest to highest. If a Shipper’s interruptible service 
			is subject to interruption based on its discounted rate, such 
			Shipper shall be afforded an opportunity to match a higher rate to 
			avoid such interruption. Service which is being provided at the 
			same rate shall be interrupted by Priority Date, as determined by 
			Paiute, from newest to oldest. Service which is provided at the 
			same rate and which also has the same Priority Date shall be 
			interrupted based on the pro rata share of such Shipper’s 
			scheduled quantity to the total scheduled quantities for such 
			priority for such day. Paiute shall then interrupt all 
			interruptible service which is being provided at the maximum rate 
			applicable to such service by Priority Date, as determined by 
			Paiute, from newest to oldest. Agreements having the same Priority 
			Date shall be interrupted based on the pro rata share of such 
			Shipper’s scheduled quantity to the total scheduled quantities for 
			such priority for such day.