TF03     63B0020005P126Second Revised Sheet No. 63B
TF04                First Revised Sheet No. 63B
TF05Edward C. McMurtrie, Vice President/General Manager
TF06122105113005RP05-163-000, et al.010106
TF0711361222
                    GENERAL TERMS AND CONDITIONS
                           (Continued)


4. OPERATING PROCEDURES (Continued)

   4.2  Scheduling of Gas Receipts and Deliveries: (Continued)

  		 a. For transportation services, the aggregate quantities
                    of natural gas (1) received into Paiute’s system, 
                    (2) delivered from Paiute’s system, (3) consumed as 
                    fuel in Paiute’s transmission system operations, (4) 
                    lost and unaccounted for with respect to Paiute’s
                    transmission system operations, (5) scheduled for
                    transportation under Rate Schedules FT-1 and IT-1; 
                    (6) retained from Shippers as Gas Used by Paiute; and
                    (7) forfeited by Replacement Shippers under Section 
                    2.3 of Rate Schedule LGS-1 and by Shippers under Section
                    2.4 of Rate Schedule LGS-2.

                 b. For LNG storage services, the aggregate quantities of
                    natural gas (1) liquefied for storage, (2) vaporized 
                    for delivery into Paiute’s transmission system (the
                    quantity of gas vaporized where Paiute initiates
                    vaporization without a Shipper nomination will be
                    separately stated), (3) consumed as fuel during
                    liquefaction and vaporization operations, as well as
                    for plant operations (each quantity to be stated
                    separately), (4) lost and unaccounted for with respect
                    to Paiute’s LNG storage operations, (5) stored in
                    inventory at the beginning of the month and at the end 
                    of the month, stated in total working gas inventory 
                    owned by Shippers and total cushion gas inventory owned
                    by Paiute, and (6) retained from Shippers as Gas Used
                    by Paiute, stated separately for liquefaction and
                    vaporization operations.

                 c. The imbalance quantities between Paiute and each up-
                    stream pipeline that delivers natural gas into Paiute’s
                    system, and the imbalance quantity between Paiute and 
                    its Shippers in aggregate, stated at the end of the 
                    month.
 
                 d. Workpapers and other materials that explain the deriva-
                    tion of the percentage of Gas Used by Paiute established
                    for transportation services.

                 All quantities of natural gas will be stated in dekatherms.