TF03      820010005P126Substitute First Revised Sheet No. 82
TF04                Original Sheet No. 82
TF05Edward C. McMurtrie, Vice President/General Manager
TF06112904110304RP04-51-000     120903
TF0710961139
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


5.  OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)

    5.2   Restricted Entitlement Events:

          (a) Restricted Delivery--Paiute System

              (1)  Applicability:  This section applies to both firm and
                   interruptible transportation service under Rate
                   Schedules FT-1 and IT-1 when Paiute initiates general
                   system entitlement restrictions to alleviate operating
                   conditions or events which threaten or could threaten  
                   the safe operation or integrity of Paiute’s system.
                   Conditions or events that may trigger the imposition
                   of restricted entitlements include unscheduled inter-
                   ruptions or curtailments of service, force majeure
                   events on Paiute’s system and/or the systems of upstream
                   pipelines (such as pipeline, compressor, or storage
                   facility failures), excess linepack drafting or packing,
                   and unexpected extreme weather conditions. An explicit
                   operational flow order (OFO) statement (verbal or written)
                   by Paiute is required to activate 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. The OFO may be issued for
                   either overrun or underrun situations and may be appli-
                   cable to all Shippers or to individual Shippers taking 
                   more or less gas from the system than the quantities
                   scheduled for delivery to such Shippers. Paiute shall
                   specify in the OFO statement whether the entitlement
                   event is an overrun or underrun entitlement.
 
              (2)  Daily Scheduled Quantity:  The quantity of gas sched-
                   uled pursuant to Section 4.2 and/or Section 4.6 of the
                   General Terms and Conditions of this tariff shall
                   constitute the maximum quantity that Paiute is obligated
                   to deliver to Shipper (Daily Scheduled Quantity).

              (3)  Any quantity taken by Shipper in excess of the Daily
                   Scheduled Quantity during an OFO period applicable to an
                   overrun situation shall constitute an Unauthorized Daily
                   Overrun. Any quantity taken by a Shipper less than the
                   Daily Scheduled Quantity during an OFO period applicable
                   to an underrun situation shall constitute an Unauthorized
                   Daily Underrun. An Unauthorized Daily Overrun and an 
                   Unauthorized Daily Underrun are subject to the following
                   penalties: