TF03     63B  2  05P126Second Revised Sheet No. 63B
TF04                First Revised Sheet No. 63B
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503
                    GENERAL TERMS AND CONDITIONS
                           (Continued)


4.      OPERATING PROCEDURES (Continued)

  4.2   Scheduling of Gas Receipts and Deliveries: (Continued)

             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. 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 round-
             ing 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 trans-
             action 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 pro-
             vided 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 interrup-
             tion. 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 deter-
             mined 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.