TF03    102A0000005P126Substitute Original Sheet No. 102A
TF04               
TF05Edward C. McMurtrie, Vice President/General Manager
TF06112904110304RP04-51-000     120903
TF0710961139
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


13. SEGMENTATION AND BACKHAUL TRANSPORTATION(Continued)

    13.4  Pre-Scheduling Adjustments to Nominations: (Continued)

          (b)  If the combined total of Releasing and Replacement Shippers’
               nominations for any portion of Paiute’s system exceed
               Releasing Shipper’s pre-release applicable Reserved Capac- 
               ity, nominations will be reduced to equal such applicable
               Reserved Capacity in accordance with (1) and (2) below:

               (1)   Within-the-path nominations will have a higher
                     priority than out-of-path nominations.

               (2)   To the extent that the combined total of Releasing and
                     Replacement Shippers’ out-of-path nominations for any
                     portion of Paiute’s system exceed Releasing Shipper’s
                     pre-release applicable Reserved Capacity, both the
                     Releasing Shipper’s and the Replacement Shipper’s 
                     nominations will be reduced on a pro rata basis, based
                     on each Shipper’s nominations, so that the combined
                     nominations are equal to the Releasing Shipper’s pre-
                     release applicable Reserved Capacity.

          (c)  The above nominations are subject to further reduction by
               any applicable LCL contained in Shipper’s original Service
               Agreement.

    13.5  For purposes of this Section 13, the term “applicable Reserved
          Capacity,” when used herein to refer to Shipper’s capacity rights
          on the portion of Paiute’s system between the Owyhee Receipt 
          Point and the LNG Plant, may not exceed Shipper’s Daily Reserved
          Capacity less its Rate Schedule LGS-1 Daily Delivery Capacity.