TF03      830020005P126Second Revised Sheet No. 83
TF04                First Revised Sheet No. 83  
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503                      120903
                        GENERAL TERMS AND CONDITIONS
                                 (Continued)


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

    5.2   Restricted Entitlement Events: (Continued)

          (b) Restricted Entitlements by Upstream Pipelines

              (1)  Applicability:  This section applies to both firm and
                   interruptible transportation service when an upstream
                   pipeline has invoked a Declared Entitlement Period or
                   similar tariff provisions limiting overrun or underrun
                   quantities, and Paiute, as the receiving party, has
                   incurred penalties from such upstream pipeline. Upon
                   notice from the upstream pipeline of such invocation,
                   Paiute will notify each Shipper, using the procedures
                   set forth in Section 4.6(f) of the General Terms and 
                   Conditions, that a Declared or Restricted Entitlement
                   Period exists, and shall specify each period as either
                   an overrun or an underrun entitlement such that only one
                   penalty condition may exist at one time. In the event an
                   underrun situation exists, Paiute will notify each Shipper
                   of the quantities required to be taken within the next
                   seventy-two (72) hours to eliminate the unauthorized
                   underrun imbalance.

              (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).