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. 118 Original Sheet No. 118 : Effective

Transporter's pipeline. Transporter and Shipper

agree that Shipper shall continue to serve as

Point Operator at the Receipt Point for all gas

quantities transported under such Agreement, and

that Transporter shall provide all necessary

notices to Northern Natural to effectuate such

designation. Such designation of Shipper as

Point Operator shall continue in full force and

effect throughout the term of such Agreement,

provided that Shipper remains the only Shipper on

Transporter's pipeline. In the event Transporter

subsequently begins transporting gas over the

pipeline for other shippers, subject to any

limitations set forth in such Agreement,

Transporter shall take over the responsibilities

of Point Operator at the Receipt Point, but shall

coordinate its activities so as not to impair the

nomination and balancing of the existing

Shipper's gas quantities transported under the

Agreement with such Shipper.

4.8 Imbalances - The quantities of gas tendered at

the Receipt Point and the quantities of gas

delivered at the Delivery Point(s) shall remain

in continuous balance or as near thereto as

practical. In the event the quantity of gas

tendered at the Receipt Point and the quantity of

gas taken at the Delivery Point(s) are not equal,

a condition of imbalance shall exist. If

Transporter or Shipper determines that an

imbalance exists, both Transporter and Shipper

shall use diligent efforts to correct the

imbalance as soon as practical. Transporter will

net Shipper's imbalances on a monthly basis

across all of Shipper's Transportation

Agreements. Shipper may trade any imbalances

incurred under this Section 4 with other Shippers

on Transporter's system, provided the imbalances

to be traded are off-setting. Trades will be

deemed completed upon notification to

Transporter.

4.9 Shipper and Transporter will comply with the

nomination provisions set forth in Rate Schedule

IT-1 of the Northern Natural Gas Tariff, as such

procedure may be reasonably revised from time to

time to account for operational changes.