Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/08/2003, Docket: RP04-102-001, Status: Effective

Original Sheet No. 5 Original Sheet No. 5 : Effective

PRELIMINARY STATEMENT

Pinnacle Pipeline Company ("Pinnacle" or "Transporter") is a

corporation formed under the laws of the State of Texas, with

its principal place of business at Houston, Texas.

Transporter is a "natural gas company" as defined by the

Natural Gas Act ("NGA"), 15 U.S.C. 717-717w, and is

subject to the jurisdiction of the Federal Energy Regulatory

Commission ("Commission"). Transporter owns and operates a

natural gas transmission system located in Lea County, New

Mexico, which is used solely to transport natural gas from an

interconnection with an interstate pipeline to two electric

power plants.

Although its facilities are located entirely within the State

of New Mexico, Transporter is engaged in the business of

transporting natural gas for shippers in interstate commerce

on a firm and interruptible basis. The transportation of

natural gas in interstate commerce is provided pursuant to a

blanket certificate issued to the Transporter for the

activities specified in Part 284, Subpart G, of the

Commission's regulations, as amended from time to time.

Pinnacle will undertake the transportation of natural gas

only under written agreement(s) acceptable to Pinnacle upon

consideration of existing commitments, operating conditions,

and any other factors deemed pertinent by Pinnacle.