TF01014380012609PAIUTE PIPELINE COMPANY
TF02 1 A  2Second Revised Volume No. 1 A
TF03     1040040005P126Fourth Revised Sheet No. 104
TF04                Third Revised Sheet No. 104
TF05Edward C. McMurtrie, Vice President/General Manager
TF06012609112108RM08-1-001          022509
TF0712561216

                          GENERAL TERMS AND CONDITIONS
                                  (Continued)


14.  CAPACITY RELEASE (Continued)

     14.1 Definitions: (Continued)

               release transaction directly with a Releasing Shipper, which 
	       terms are posted to the Electronic Bulletin Board. Prearranged
               Replacement Shippers must meet all of the terms and conditions
               of Paiute's tariff as required of any other Shipper.

          (g)  Bidder: A party submitting a bid(s) to Paiute's Electronic
               Bulletin Board for released capacity.

          (h)  Open Bidding: Full disclosure of the bid form(s) submitted
               to the Electronic Bulletin Board, excluding bidder's name.

          (i)  Short Term Releases: The release of firm capacity for a time
               period of one year or less.

          (j)  Long Term Releases: The release of firm capacity for a time
               period of more than one year.

          (k)  The Economic Value of a Bid: For the capacity release
               business process timing model, only the following
               methodologies are required to be supported by Paiute and
               provided to Releasing Shippers as choices from which they
               may select in determining the awards from the bids
               submitted. They are (1) Highest Rate, (2) Net Revenue and
               (3) Present Value.

               Other choices of bid evaluation methodology (including other
               Releasing Shipper defined evaluation methodologies) can be
               accorded similar timeline evaluation treatment at the
               discretion of Paiute. However, Paiute is not required to
               offer other choices or similar timeline treatment for other
               choices, nor is Paiute held to the timeline should the
               Releasing Shipper elect another method of evaluation.

          (l)  Daily Rate: Converting a monthly rate to a daily rate is
               accomplished by multiplying the monthly rate by the number
               of months in the rate period, dividing the result by the
               number of days in the rate period, taking the remainder out
               to 5 decimal places, and rounding up or down to the trans-
               porter's specified decimal place.