TF03     74B0010005P126First Revised Sheet No. 74B
TF04                Original Sheet No. 74B  
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: (Continued)

              (4)  As between Paiute and Shipper, Shipper shall be solely
                   responsible for making all arrangements for having LNG
                   transported by truck for delivery to the LNG Plant, and
                   for ensuring compliance with all federal, state, and
                   local laws and regulations applicable to the transporta-
                   tion of LNG by truck.

          (c) Storage of Liquid: The storage of LNG by Paiute shall be sub-
              ject to the following:

              (1)  Paiute shall operate the storage tank in a safe and
                   reasonable manner. Subject to Section 4.10 hereof, any
                   losses of inventory from the facilities shall be the
                   sole responsibility of the owner of the inventory.

              (2)  The ownership of LNG in storage at any given time
                   will be determined by good accounting practices, subject
                   to a material balance audit once each twelve (12) calen-
                   dar months corresponding with the beginning of the
                   Winter Period.

                   a.  Shipper's inventory at the LNG Plant will be equal
                       to Shipper's natural gas tendered to the LNG Plant,
                       plus LNG tendered by Shipper to the LNG Plant at the
                       LNG truck unloading facility, less: (1) the with-
                       drawals of Shipper's gas, (2) the measurable boil-
                       off and fuel attribution to Shipper, and (3) the
                       allocation of any lost or unaccounted for gas deter-
                       mined at the time of the audit which is assigned to
                       each Shipper.

                   b.  The results of the audit and detailed workpapers of
                       such audit will be provided to each Shipper within
                       twenty (20) days of the completion of the audit.