TF03     115  0  05P126Original Sheet No. 115
TF04
TF05Edward C. McMurtrie, Vice President/General Manager
TF06061193
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


15. REVENUE CREDITING FOR CAPACITY RELEASES (FIRM) (Continued)

    15.3  Monthly Crediting Procedures: (Continued)

          Paiute from the Replacement Shipper or Prearranged Replacement
          Shipper during each calendar month applicable to capacity which
          the Releasing Shipper made available for release and which
          actually was released and resold to a Replacement Shipper or
          Prearranged Replacement Shipper. The revenue credits shall be
          credited directly only to the Releasing Shipper who releases the
          released capacity, unless the released capacity was resold under
          a Combined Transaction (a transaction involving the resale of
          more than one Releasing Shipper's released capacity). If the
          Released Capacity was resold under a Combined Transaction, each
          of the Releasing Shippers whose released capacity is part of the
          Combined Transaction is entitled to receive monthly revenue cre-
          dits pro rata in proportion to the actual Reservation Charge
          revenue from the released capacity payable by each Releasing
          Shipper before the distribution of revenue credits to the total
          of such revenues from the applicable Combined Transaction.
    15.4  Credit Amounts and Offset Procedure:

          Paiute shall provide a conditional credit each month to the
          Releasing Shipper for one hundred percent (100%) of the actual
          reservation charge revenue applicable to released capacity that
          is to be collected by Paiute from the Replacement Shipper or
          Prearranged Replacement Shipper. The Releasing Shipper shall con-
          tinue to be billed by Paiute each month for all reservation
          charges applicable to released capacity, which billing shall be
          offset by the revenue credits. The conditional revenue credit
          will be reflected on the Releasing Shipper's invoice in the same
          month that Paiute bills the Replacement Shipper or Prearranged
          Replacement Shipper for the released capacity. If the Replacement
          Shipper or Prearranged Replacement Shipper does not make payment
          for the reservation charges as billed, Paiute shall so notify the
          Releasing Shipper within ten (10) working days following the date
          on which the amount was due, and shall bill the Releasing Shipper
          for all unpaid amounts, including all late charges authorized in
          Section 10 of the General Terms and Conditions of this tariff, on
          the next regularly scheduled billing. Such amount shall then be
          paid by the Releasing Shipper. In addition, the Releasing Shipper
          may terminate the release of capacity to a Replacement Shipper or
          Prearranged Replacement Shipper if such Shipper fails to pay all