TF03      840020005P126Second Revised Sheet No. 84
TF04                First Revised Sheet No. 84
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)

              (3)  For each day of an overrun entitlement period, any
                   quantity taken by Shipper in excess of its Daily
                   Scheduled Quantity shall constitute an Unauthorized
                   Daily Overrun, and shall be subject to a penalty, 
                   but only in the event that Paiute has been assessed
                   penalties by the upstream pipeline for the Declared
                   or Restricted Entitlement Period. In such event,
                   Paiute shall recover from its Shippers an amount of
                   penalty revenues equal to the amount that Paiute has
                   been assessed by the upstream pipeline. Paiute shall
                   allocate such penalty amount among its Shippers on a 
                   pro rata basis, based upon each Shipper's total
                   Unauthorized Daily Overrun quantity for the entitle-
                   ment period compared to the total of all Shippers'
                   Unauthorized Daily Overrun quantities for the entitle-
                   ment period.

              (4)  For each day of an underrun entitlement period, any
                   quantity taken by Shipper that is less than its 
                   Daily Scheduled Quantity shall constitute an Unauthorized
                   Daily Underrun, and shall be subject to a penalty, but 
                   only in the event that Paiute has been assessed 
                   penalties by the upstream pipeline for the Declared
                   or Restricted Entitlement Period. In such event, Paiute
                   shall recover from its Shippers an amount of penalty
                   revenues equal to the amount that Paiute has been
                   assessed by the upstream pipeline. Paiute shall allocate
                   such penalty amount among its Shippers on a pro rata
                   basis, based upon each Shipper's total Unauthorized Daily
                   Underrun quantity for the entitlement period compared to
                   the total of all Shippers' Unauthorized Daily Underrun
                   quantities for the entitlement period.