TF03      870020005P126Second Revised Sheet No. 87
TF04                First Revised Sheet No. 87      
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)

              (1)  Any Shipper whose daily imbalance falls outside a
                   tolerance range of plus or minus ten percent (10%)
                   of Shipper's scheduled quantity for such day or five
                   hundred (500) Dth, whichever is greater, shall be
                   notified by Paiute of such imbalance. After either
                   verbal or written notification, by Paiute, Shipper
                   shall take the necessary corrective action to
                   correct or avoid the daily imbalance situation.
                   Unless Shipper and Paiute's dispatcher reach an
                   agreement to provide Shipper with additional time,
                   such action shall be taken at the time of Shipper's
                   next scheduling pursuant to Section 4.2(a) of the
                   General Terms and Conditions of this tariff. In all
                   cases, the Shipper shall have a minimum of forty-
                   eight (48) hours after such scheduling to correct
                   the imbalance.

              (2)  In the event Shipper fails to fully implement the
                   corrective action as agreed upon or prescribed pur-
                   suant to Section 5.3(c)(1) hereof, Shipper shall,
                   commencing on the date on which corrective action
                   was to be completed, be assessed a penalty, for each
                   day thereafter and until such corrective action has
                   been completed. The penalty shall be five dollars
                   ($5.00) per Dth and shall be applied to those quan-
                   tities that each day remain outside of the tolerance
                   range specified in Section 5.3(c)(1) hereof.

              (3)  Paiute will not invoke the above procedures, and will   
                   waive the above imbalance penalties, if, in Paiute's
                   reasonable judgment, Shipper's actions have not
                   jeopardized Paiute's ability to operate its system
                   or impaired Paiute's ability to meet its other
                   service obligations. Penalties or waivers of penalties
                   will be applied uniformly and in a non-discriminatory   
                   manner.