TF03      760020005P126Second Revised Sheet No. 76
TF04                 First Revised Sheet No. 76
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)

                   Paiute shall recover the credit against Storage and
                   Delivery Charges as described above from the Non-LNG
                   Customer(s) which received the benefit of the inventory
                   withdrawn. In the event that more than one Non-LNG 
                   Customer received benefit, the credit against Storage
                   and Delivery Charges established above will be recovered
                   from each such Non-LNG Customer in proportion to its
                   respective share. In addition, such Non-LNG Customer(s)
                   are required to replace the LNG inventory used in-kind
                   as soon as practical in a manner to be agreed upon by
                   Paiute and the LNG Customer(s) owning the inventory
                   that was withdrawn. 

                   In the alternative, and subject to operational and
                   scheduling approval by Paiute, which shall not be with-
                   held unreasonably, as soon as possible after notifica-
                   tion of the LNG use, and at the option of and with the
                   concurrence of the LNG Customer whose inventory was
                   appropriated, the Non-LNG Customer may replace the LNG
                   with gas from such Non-LNG Customer's flowing gas
                   supply or with LNG delivered to Paiute's LNG truck
                   unloading facility. In the event that either of these
                   alternatives is elected and used by the LNG Customer and
                   the Non-LNG Customer, Paiute shall be relieved of its
                   obligation to provide a credit against the Storage and
                   Delivery Charges, and no charge shall be imposed on the
                   Non-LNG Customer, as specified in this section. In addi-
                   tion to providing replacement of the LNG inventory actu-
                   ally used, such replacement shall include a volume of
                   gas equal to the Gas Used by Paiute to both liquefy and
                   gasify the LNG Customer's inventory, which percentages
                   are specified in Section 5 of Rate Schedule LGS-1.

              (4)  Shippers under Rate Schedule LGS-1 may transfer the own-
                   ership of stored LNG among one another, subject to the
                   following conditions:

                   a.  The owner of the stored LNG notifies Paiute's dis-
                       patcher by telephone of the transfer of ownership
                       prior to such transfer. Paiute will not recognize
                       the change in inventory ownership for dispatching
                       purposes prior to such notification.