TF03      740020005P126Second Revised Sheet No. 74
TF04                First Revised Sheet No. 74
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503                      120903
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


4.  OPERATING PROCEDURES (Continued)

    4.7   Operating Procedures for Rate Schedule LGS-1 Service:

          Paiute shall retain full operational control of its LNG Plant and
          shall schedule receipts and deliveries, including the receipt of
          liquefied natural gas (herein called "LNG") by truck, and at all
          times be entitled to operate the LNG Plant in a manner which is
          consistent with the obligations and operating conditions and lim-
          itations set forth elsewhere in this tariff, as such obligations
          and operating conditions and limitations may exist from time to
          time on Paiute's system. In addition to the other provisions of
          this tariff, the following terms and conditions shall apply
          specifically to the operation by Paiute of its LNG Plant:

          (a) Receipt of Gas at the LNG Plant: Except for LNG tendered by
              Shipper for receipt at Paiute's LNG truck unloading facility,
              which is addressed in subparagraph (b) below, natural gas
              tendered by Shipper on any day to the LNG Plant shall be gas
              that has been transported by Paiute pursuant to either Rate
              Schedule FT-1 or Rate Schedule IT-1 of this tariff. Paiute
              will accept gas from Shipper for liquefaction on any day dur-
              ing the Summer Period, operating circumstances permitting.
              Paiute may accept gas for liquefaction on other days if 
              Paiute determines that such liquefaction will not adversely
              affect Paiute's operations or its service obligations to its
              other customers. Paiute's acceptance of gas for liquefaction
              shall be on a pro rata basis of Shipper's tendered quantity
              to the total quantity scheduled for liquefaction on that day
              at the LNG Plant.

              Paiute shall provide the Shippers under Rate Schedule LGS-1
              with a daily schedule of the total liquefaction quantity
              thirty (30) days prior to the commencement of the Summer
              Period subject, however, to such changes as operating con-
              ditions may require. In scheduling the operation of the LNG
              Plant, Paiute, to the extent possible, will attempt to take
              into account all economic factors including gas supply and
              market conditions communicated to Paiute by the various
              Shippers.