TF03      710010005P126First Revised Sheet No. 71
TF04                Original Sheet No. 71  
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)

                   b.  Requests for voluntary curtailment will be made to
                       Low Priority customers. Low Priority customers
                       willing to be curtailed first will negotiate the
                       compensation to be paid by the Firm Shippers
                       receiving the diverted gas supplies. If voluntary
                       curtailment is not sufficient to satisfy supply
                       needs, then the curtailment order will proceed.

                   c.  Beginning in reverse order of priority, firm capa-
                       city and supply used to satisfy Low Priority loads
                       will be curtailed pro rata within a given priority,
                       and the supplies diverted to the affected Firm
                       Shipper(s).

                   d.  Curtailment will continue until:

                       1.  All Low Priority loads are curtailed; or

                       2.  The volume required to forestall High Priority
                           curtailment is diverted.

                   e.  In the event that diverted Low Priority volumes are
                       not sufficient to prevent High Priority curtailment,
                       then all High Priority shipper(s) will share in the
                       High Priority curtailment beginning with Priority 2c
                       volumes. Curtailment will be pro rata within a given
                       priority and will continue until Priority 1 load is
                       protected across the Paiute system.

                   f.  In the event an electric utility declares that cur-
                       tailment of Low Priority gas service would create a
                       Firm Load Electrical Emergency, the volumes required
                       to forestall such Firm Load Electrical Emergency
                       will be deemed to be Priority 1 volumes for the pur-
                       poses of curtailment during that specific instance.

                   g.  Firm Shipper(s) receiving diverted supplies will
                       reimburse those firm shipper(s) being curtailed for
                       their costs of acquiring and having transported such
                       supplies in addition to their incremental costs in
                       acquiring and using their least cost alternative
                       energy needs available to the Shipper during such
                       period of curtailment.