TF03      850010005P126First Revised Sheet No. 85
TF04                Original Sheet No. 85 
TF05Edward C. McMurtrie, Vice President/General Manager
TF06110503                      120903
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


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

    5.3   Balancing:

          (a) Applicability:  This section applies to both firm and
              interruptible transportation service under Rate Schedules
              FT-1 and IT-1. The balancing of amounts scheduled and
              amounts taken by Shipper shall be on a thermally
              equivalent basis, taking into account Shipper's allocated
              portion of the Gas Used by Paiute. Such balancing shall be
              achieved on a daily basis in accordance with this Section
              5.3, subject to Shipper's right, upon Paiute's approval, to
              vary amounts scheduled and amounts taken from time to time
              within limits specified by Paiute. Such balancing shall be
              measured by comparing the quantities scheduled for receipt
              by Paiute from Shipper at the Receipt Point(s), less Gas
              Used by Paiute, with the quantities taken by Shipper from
              Paiute at the Delivery Point(s). Shipper shall be subject
              to penalty payments as set forth below for any imbalances 
              between quantities scheduled and amounts taken by Shipper
              that are outside the imbalance tolerance ranges set forth
              in Sections 5.3(c) and 5.3(d) below.

              Shipper shall eliminate any cumulative imbalance between
              amounts scheduled and amounts actually taken by Shipper
              within sixty (60) days after its Service Agreement is
              terminated.

          (b) Responsibility of Shipper:  It is the responsibility of
              Shipper to control, and if necessary, adjust amounts
              scheduled by Shipper at the Receipt Point(s), and amounts
              taken by Shipper at the Delivery Point(s) in order to
              maintain a daily balance between the two quantities. 
              Paiute shall not be obligated to receive or deliver gas in
              excess of the quantities scheduled by Shipper, nor shall
              Paiute be obligated to deliver to Shipper at the Delivery