TF03     1000020005P1282nd Substitute Second Revised Sheet No. 100
TF04                First Revised Sheet No. 100
TF05Edward C. McMurtrie, Vice President/General Manager
TF06112904110304RP04-51-000     120903
TF0710961139
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


12.	LATERAL PIPELINES POLICY

	Paiute will not build or contribute to the cost of building any lateral pipelines 
	to transportation shippers.  Nothing in this policy statement shall require 
	Paiute to file an application for a certificate of public convenience and 
	necessity under Section 7(c) of the Natural Gas Act ("Act"), and nothing in this 
	policy statement shall prevent Paiute from contesting an application for service 
	filed pursuant to Section 7(a) of the Act. Paiute reserves the right to seek a 
	waiver of the policy set forth herein, for good cause shown, during any 
	proceeding before the Commission instituted under Section 7 of the Act.

13.	SEGMENTATION AND BACKHAUL TRANSPORTATION

	13.1	To the extent operationally feasible, a firm Shipper may segment its 
	        capacity into separate parts for its own use or for the purpose of releasing 
	        a portion of its capacity to another Shipper.  Subject to the limitations 
	        set forth below, such segmentation may be on a primary firm basis (using 
	        primary firm receipt and delivery points) or secondary firm basis (using 
	        secondary firm receipt and/or delivery points). Any segment must extend from 
	        a Receipt Point on Paiute(s system to a Delivery Point, except that for 
	        purposes of segmentation, the LNG Plant and Wadsworth Junction Receipt 
	        Points may also be designated as Delivery Points. Paiute will respond to a 
	        Shipper(s segmentation request within two business days following the 
	        request. If the segmentation request is approved, Paiute will issue new 
	        service agreements for each of the segments within one hour of notification 
	        to the Shipper that the request is approved.  

	13.2	Segmentation Without Capacity Release: 

		(a)	To the extent operationally feasible, a Shipper from time to time may 
			segment its capacity into separate parts for its own use and may 
			nominate up to its applicable Reserved Capacity (i.e., Daily Reserved 
			Capacity or Summer Daily Reserved Capacity) in any segment, provided, 
			however, that if Shipper(s Service Agreement contains a limitation on 
			the capacity that Shipper is entitled to use on a particular lateral 
			(LCL), Shipper may nominate, on a primary firm basis, only up to the 
			applicable LCL for any segment that includes a portion of such lateral. 
			Shipper may nominate transportation quantities in excess of its LCL, up 
			to its applicable Reserved Capacity, on a secondary firm basis.  If 
			primary firm capacity is available, Shipper may amend its Service 
			Agreement to increase any applicable LCL on a primary basis up to its 
			applicable Reserved Capacity by reducing its primary firm rights on a 
			different lateral to an equivalent extent.