TF03      700010005P126First Revised Sheet No. 70
TF04                Original Sheet No. 70 
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503                      120903
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


4.  OPERATING PROCEDURES (Continued)

    4.6.  Interruptions or Curtailment of Service: (Continued)

          (d) Catastrophic Capacity Failure: In the event of a Catastrophic
              Capacity Failure, Paiute will invoke Section 4.6(c) hereof,
              Unscheduled Interruption or Curtailment. If a firm Shipper's
              allocation of the ADQ is less than its scheduled quantity
              and is insufficient to meet its High Priority demand, the
              following procedure will be followed. To the extent that the
              Catastrophic Capacity Failure has not precluded receipts from
              Paiute's LNG Plant and does not preclude delivery to the
              affected High Priority customer(s), then:

              (1)  The affected Firm Shipper(s) will request supplies from
                   its available LNG inventory.

              (2)  In the event that the affected firm Shipper(s) does not
                   have sufficient LNG inventory to meet the shortfall,
                   the affected Firm Shipper(s) will enter into immediate
                   negotiations with other Shippers to purchase the requir-
                   ed supplies, from available LNG inventories or otherwise.

              (3)  In the event that other Shippers are unable or unwilling
                   to sell the required supplies, Paiute will utilize avail-
                   able LNG inventory to forestall any High Priority cur-
                   tailment. In this event, the Firm Shipper(s) receiving
                   this emergency service shall return equivalent quantities
                   of gas to the LNG inventory and/or to the Shipper(s)
                   whose inventory was utilized as soon as practicable after
                   the conclusion of the Catastrophic Capacity Failure. The
                   method of returning such quantities shall be determined
                   by Paiute and the other Shipper(s) involved.  

              (4)  In the event service to High Priority customers is
                   still in jeopardy, then curtailment will be invoked on
                   the Paiute system.

                   a.  Firm Shippers will be required to provide demand by
                       end use priority to Paiute for the specific day in
                       question.