TF03      890060005P128Sixth Revised Sheet No. 89
TF04                Fifth Revised Sheet No. 89
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)

          (e)  Paiute shall waive any penalty payments that may otherwise be
               due pursuant to this Section 5.3 for any imbalance caused by
               an event of force majeure, as defined in Section 6.1 of the
               General Terms and Conditions of this tariff, occurring on
               Paiute's system, occurring on Shipper's system, or occurring
               on the transmission or gathering system of a third party, and
               which interferes with the receipt or delivery by Paiute of
               Shipper's gas. In addition, Paiute will waive any such penal-
               ty payments otherwise due from interruptible shippers and
               capacity release Replacement Shippers whose scheduled gas is
               bumped during a non-critical period, for the day of the bump.

          (f)  Shipper Imbalance Netting: A Shipper may net its imbalances
               between its service agreements, provided that Paiute will be
               reimbursed for any difference in transportation revenues 
               that may result from such netting. Where a netting trans-
               action results in an overpayment of transportation revenues
               to Paiute, Paiute will credit or refund the amount of the
               overpayment to the Shipper.               

          (g)  Shipper Imbalance Trading: A Shipper may trade imbalances 
               with another Shipper, provided that the Shipper with an
               imbalance resulting from deliveries by Paiute in excess of
               scheduled receipts from Shipper will reimburse Paiute for
               any difference in transportation revenues that may result 
               from such trading. Where an imbalance trading transaction
               results in an overpayment of transportation revenues to
               Paiute, Paiute will credit or refund the amount of the over-
               payment to the Shipper who made the overpayment. Any trading
               of Shipper imbalances must result in each Shipper's imbalance
               decreasing, but not beyond a zero imbalance level. 

               (1)  All imbalance trading will be conducted through 
                    Paiute's Electronic Bulletin Board or Internet Web
                    Site. If a Shipper desires to trade an imbalance, such
                    Shipper must consent to Paiute's release of necessary
                    information regarding the imbalance.

               (2)  Shippers that trade imbalances are responsible for 
                    making whatever arrangements they deem necessary to
                    finalize and document the imbalance trade between them.

               (3)  Paiute will not be responsible for eliminating any
                    imbalances between Shipper and any third party.
                    Furthermore, Paiute will not be obligated to adjust or
                    deviate from its standard operating and accounting
                    procedures in order to alleviate any such imbalances.