TF03     118  1  05P126First Revised Sheet No. 118
TF04                Original Sheet No. 118
TF05Edward C. McMurtrie, Vice President/General Manager
TF06040197021897RP97-136-000        060197
                   GENERAL TERMS AND CONDITIONS
                           (Continued)


16.  PREGRANTED ABANDONMENT AND RIGHT-OF-FIRST-REFUSAL (Continued)

     16.5 Procedures: (Continued)

          the capacity that is subject to the expiring Service Agreement may
          be submitted for posting to the Electronic Bulletin Board, using
          the "Bid Form to Acquire Firm Capacity" contained in Section 25 of
          the General Terms and Conditions of this tariff, until 7:00 p.m.
          (5:00 p.m. Pacific Clock Time) on the second Monday of the month
          following the month the available capacity was posted.

          (i)  The maximum rate which may be bid shall be the applicable
               maximum rate for such service. Notwithstanding any other
               provisions of this Section 16, Paiute shall not be obligated
               or required to enter into any Service Agreement that
               provides for a rate that is less than the applicable maximum
               rate for such service.

          (j)  Paiute will determine, based on the Economic Value of the
               bids submitted, which bid(s) it might accept if the existing
               Shipper were to choose not to match the Economic Value of
               the bid(s), and will present the bid(s) to the existing
               Shipper no later than 7:00 p.m. (5:00 p.m. Pacific Clock
               Time) on the Wednesday following the close of bidding. The
               existing Shipper will have until 7:00 p.m. (5:00 p.m.
               Pacific Clock Time) on the Monday following the close of
               bidding to match the winning bid(s). If the Economic Value
               is equal for more than one bid, Paiute will determine the
               winning bid(s) by holding a lottery using a computerized
               random number generator. If the existing Shipper elects to
               match the bid(s) presented, then Paiute will initiate a new
               bidding process by posting to the Electronic Bulletin Board
               the following day the terms of the bid(s) matched by the
               existing Shipper; provided, however, that if the existing
               Shipper has matched a bid at the maximum effective rate for
               the maximum bid term, no further bidding process will be
               held. The posting and bidding process will be reiterated
               over successive 2-week periods, with bids received by 7:00
               p.m. (5:00 p.m. Pacific Clock Time) on the second Wednesday
               after posting and the existing Shipper electing by 7:00 p.m.
               (5:00 p.m. Pacific Clock Time) on the following Monday
               whether to match the highest bid, until either (1) the
               existing Shipper elects to match any bid made at the
               applicable maximum rate, or (2) only one offer among the
               bidders and the existing Shipper remains for the capacity.
               If the existing Shipper is the winning bidder, then the