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. 122 Original Sheet No. 122 : Effective

excused from compliance with the OFO for any

reason, and shall provide Transporter with

documentation sufficient to support its basis for

non-compliance.

8.3 If a shipper fails to comply with an OFO, it

shall be subject to (a) a penalty of $25.00 per

MMBtu for any volume of gas by which it deviated

from the requirements of the OFO, and (b) any

overrun or other charges that may be applicable

under Section 8. A Shipper shall not incur any

charges or penalties if such charges or penalties

would not have been incurred but for Shipper's

compliance with an OFO. A Shipper shall not

incur any penalties if the OFO was necessitated

exclusively by Transporter's negligence or

willful misconduct.

8.4 Transporter may waive its right to collect all or

any portion of an OFO penalty assessed against a

Shipper, provided that such waiver is granted in

a nondiscriminatory manner.

9. BILLING AND PAYMENT

9.1 Payment Terms

On or before the tenth (10th) Business Day of

each Month, Transporter shall deliver invoices to

Shipper for its services in transporting gas

under the applicable Transportation Agreement.

All invoices shall be sent to Shipper by

facsimile transmission, or by other means of

transmission acceptable to the Transporter and

Shipper, and all invoices shall be deemed

delivered to Shipper when sent by Transporter in

this manner. In addition, Transporter shall mail

to Shipper a confirmation copy of each invoice,

but the date this copy is delivered shall have no

effect on the due date for payment of any invoice

for accounting purposes. Invoices shall be due

and payable within fifteen (15) Days of Shipper's

receipt of the original invoice. All past due

payments shall bear interest at one percent above

the prime rate per annum announced by Bank One,

Texas N.A. ("Index Bank") as it may vary from

time to time over the period beginning on the Day