TF03 810040005P128Fourth Revised Sheet No. 81 TF04 Third Revised Sheet No. 81 TF05Edward C. McMurtrie, Vice President/General Manager TF06112904110304RP04-51-000 123004 TF0710961139 GENERAL TERMS AND CONDITIONS (Continued) 5. OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued) 5.1 Daily Contract Entitlement Overrun: (Continued) (b) Authorized Daily Overrun: In the event that Shipper desires to take gas on a given day in excess of its Daily Authorized Quantity, Shipper may request permission from Paiute to take such gas in excess of its Daily Authorized Quantity during a Nomination cycle, pursuant to the provisions of Section 4.2 of the General Terms and Conditions of this tariff. If Paiute determines, in its sole reasonable judgement, that sufficient capacity exists on its system for that day to permit Shipper to take gas in excess of its Daily Authorized Quantity without impairing Paiute's ability to operate its system facilities or to meet its other service obligations, then Paiute will permit Shipper to take such gas on an inter- ruptible basis. All gas permitted by Paiute to be taken by Shipper in excess of its Daily Authorized Quantity shall constitute Authorized Overrun Gas, and shall be subject to a charge equal to the quantity of Authorized Overrun Gas in dekatherms multiplied by the sum of the Daily Reservation Charge and the Usage Charge applicable to Rate Schedule FT-1, as specified on Sheet No. 10 of this tariff. (c) Unauthorized Daily Overrun: Inasmuch as unauthorized daily overruns may seriously interfere with Paiute's ability to operate its system facilities, and thus may cause Paiute to be unable to meet its service obligations, adequate incentives must be provided to deter such overruns. All gas taken by Shipper in excess of its Daily Authorized Quantity, without the advance permission of Paiute, shall constitute Unauthorized Overrun Gas. If circumstances on Paiute’s system are such that unauthorized overruns could impair Paiute’s ability to operate its system facilities or to meet its service obligations, then Paiute may issue an operational flow order (OFO) statement (verbal or written) under this section. The OFO may be issued at any time during the Gas Day, using the procedures set forth in Section 4.6(f) of the General Terms and Conditions, and will be effective immediately unless otherwise specified. For any Gas Day for which Paiute has issued an OFO under this section, Unautho- rized Overrun Gas shall be subject to the following penalties: