TF03      96  0  05P126Original Sheet No. 96
TF04
TF05Edward C. McMurtrie, Vice President/General Manager
TF06061193
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


9.  WARRANTY OF TITLE

    9.1   Warranty:

          Paiute accepts Shipper's gas at the Receipt Point subject to the
          understanding that Shipper warrants that it will at the time of
          delivery of gas to Paiute for transportation have good title to
          all gas so delivered to Paiute, free and clear of all liens,
          encumbrances and claims whatsoever, that it will at such time of
          delivery have the right to deliver such gas to Paiute, and that
          it will indemnify Paiute and hold Paiute harmless from all
          adverse claims of any and all persons to such gas.

          Subject to the foregoing, Paiute warrants that it will at the
          time of delivery of the transported gas to Shipper at the Deliv-
          ery Point(s) have the right to deliver said gas free and clear of
          all liens, encumbrances and claims whatsoever, and that it will
          indemnify Shipper and hold Shipper harmless from all adverse
          claims of any and all persons to such gas.

    9.2   Buy/Sell:

          Buy/Sell arrangements are those in which Shipper takes title to
          natural gas upstream of Paiute's receipt point in a transaction
          with a third party with the understanding and commitment that
          after the gas has been transported on Paiute's system and deliv-
          ered to Shipper at the delivery point, such gas will be returned
          to the third party and title to the gas reconveyed to the third
          party. All buy/sell arrangements existing on the date Paiute's
          capacity releasing mechanism goes into effect will be grand-
          fathered. Shipper warrants that the gas which it tenders for firm
          transportation will not be acquired by Shipper under buy/sell
          arrangements executed after the date Paiute's capacity release
          mechanism goes into effect. Further, at such date Shipper shall
          identify existing grandfathered buy/sell arrangements, underlying
          its Firm Service Agreements with Paiute, and provide such infor-
          mation to Paiute for posting on its bulletin board pursuant to
          Section 18 of these General Terms and Conditions.