TF03     1160030005P126Third Revised Sheet No. 116
TF04                Second Revised Sheet No. 116
TF05Edward C. McMurtrie, Vice President/General Manager
TF06100506                      110506
         
                       GENERAL TERMS AND CONDITIONS
                                (Continued)

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

	15.4	Credit Amounts and Offset Procedure: (Continued)
	        
	        of the amount of any bill for service under such Shipper's
	        executed Service Agreement upon at least one (1) week's notice 
	        to Paiute and such Shipper. Once terminated, the capacity 
	        rights and the responsibility to pay all charges applicable to 
	        the released capacity shall revert to the Releasing Shipper.
	        
16.	PREGRANTED ABANDONMENT AND RIGHT-OF-FIRST-REFUSAL

	16.1	Pregranted Abandonment:
	
	        Unless otherwise provided in Shipper's Service Agreement, 
	        Paiute shall be entitled to make use of pregranted abandonment 
	        under Section 7(b) of the Natural Gas Act for long-term 
	        (twelve [12] months or more) firm transportation services, as 
	        authorized by Section 284.221(d) of the Commission's 
	        Regulations, upon the expiration of the contractual term or 
	        upon termination of each individual transportation 
	        arrangement, and shall seek bids from competing Shippers 
	        interested in acquiring such firm transportation service, 
	        as provided below.

	16.2	Right-of-First-Refusal:
	
	        A Shipper may avoid pregranted abandonment of service due to 
	        the expiration of a Firm Service Agreement which provides for 
	        a primary term of twelve (12) months or more and which (1) 
	        was executed on or after March 27, 2000 and provides for 
	        service at the applicable maximum rate, or (2) was in effect 
	        on March 27, 2000. Such Shipper may continue receiving the 
	        contracted service by matching competing bid(s) in accordance 
	        with the procedures described below; provided, however, that 
	        in no event will the Shipper be required to match a bid that 
	        exceeds the applicable maximum rate for such service. 

	16.3	Notice of Desire to Extend Service: 
 
        	To avail itself of its right-of-first-refusal, a long-term 
        	Shipper must give Paiute notice of its desire to extend such 
        	service not later than (1) the date of the contract termination 
        	notice period provided for in the Shipper's Service Agreement, 
        	or (2) twelve (12) months prior to the expiration of the term of 
        	the Service Agreement, whichever occurs first.  Such notice must 
        	specify the term of the desired extension and the rate that the 
        	long-term Shipper is willing to pay during such term.