TF03      860010005P126First Revised Sheet No. 86
TF04                Original Sheet No. 86 
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: (Continued)

              Point(s) quantities in excess of the quantities scheduled
              by Shipper at the Receipt Point(s). Paiute will monitor,
              to the best of its ability, amounts scheduled and amounts
              taken by Shipper, and based upon information available, notify
              Shipper of any imbalance situation which has occurred or may
              occur unless corrective action is taken. Upon notification,
              Shipper shall be obligated to adjust amounts scheduled and
              amounts taken to correct or avoid any imbalance. Any adjust-
              ment to amounts scheduled and amounts taken by Shipper, 
              whether or not pursuant to notification from Paiute, shall be
              coordinated with Paiute's gas dispatchers and shall be in
              accordance with Paiute's scheduling procedures. In order to
              balance quantities scheduled and quantities taken by Shipper
              pursuant to the executed Service Agreement with Shipper,
              Paiute shall not be obligated to accept quantities of gas for
              the account of Shipper or deliver gas to Shipper at points
              other than as originally scheduled by Shipper and accepted by
              Paiute pursuant to said Service Agreement.

          (c) Shipper's Failure to Control Daily Imbalance:  When on any
              day Shipper fails to control amounts scheduled versus amounts
              taken by Shipper at the Delivery Point(s) in accordance with
              Section 5.3(b) hereof, to the extent that an imbalance accrues
              on such day, the following procedures shall be implemented: