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. 133 Original Sheet No. 133 : Effective

Transporter, on mutually agreeable terms, for

100% of Transporter's construction, acquisition

and/or installation costs (including any

associated tax effects), as defined below, for

facilities required to effect the service

requested by Shipper. Transporter may waive this

requirement at its discretion, on a not unduly

discriminatory basis.

For the purposes of this section, Transporter's

construction, acquisition, and/or installation

costs shall include, but shall not be limited to:

Transporter's design costs, equipment costs,

labor costs, material costs, supervision costs,

construction financing costs (including a return

on equity), taxes (whether income or otherwise),

filing fees, right of way costs and permitting

costs. Nothing in this Section 17 shall require

Transporter to file an application for a

certificate of public convenience and necessity

under section 7(c) of the Natural Gas Act, and

nothing in this section shall prevent Transporter

from contesting an application for service filed

pursuant to section 7(a) of the Natural Gas Act.

Transporter reserves the right to seek a waiver

of the policy set forth herein, for good cause

shown during any proceeding before the Commission

instituted under section 7 of the Natural Gas

Act.

18. FERC ANNUAL CHARGE ADJUSTMENT

Transporter shall adjust the rates charged for services

as specified below from time to time to reflect the

annual charge, if any, assessed Transporter by FERC

(Annual Charge Adjustment on "ACA") pursuant to Order

No. 472 or any other superseding or related rule or

order.

18.1 Services subject to ACA shall include all

Transportation services under Rate Schedules in

Transporter's FERC Gas Tariff.

18.2 The effective ACA rates shall be shown on

Transporter's effective Statement of Rates and

Charges reflecting the current ACA amount under

this section 18.