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. 134 Original Sheet No. 134 : Effective

(a) The effective date of adjustment for each

annual charge rate adjustment filed

pursuant to this section 18 shall be

October 1 of each year. The ACA shall

become effective on the effective date of

adjustment without suspension or refund

obligation.

(b) Filing Procedure: At least thirty days

prior to the effective date of adjustment,

Transporter shall file with FERC and post,

as defined in Section 154.402 of the

Commission's Regulations, a revised Tariff

Sheet showing the Statement of Rates and

Charges in Volume No. 1 of Transporter's

FERC Gas Tariff, reflecting the current

Annual Charge Adjustment.

18.3 The current Annual Charge Adjustment shall be the

unit amount, adjusted as necessary for heating

value and pressure base, which FERC orders to be

effective for the fiscal year commencing on the

effective date of the adjustment.

18.4 Transporter shall retain all revenues collected

under this Section 18. Except as provided by

this section 18, Transporter shall not have the

right to seek to recover in any proceeding under

section 4(e) of the Natural Gas Act any annual

charges recorded in its FERC Account No. 928.

19. ORDER OF DISCOUNTING

To the extent Transporter discounts the rates for

service pursuant to this tariff, the rates for service

will be deemed to have been discounted in the following

order: (1) Reservation Charge; (2) Commodity Charge,

but no charges will be discounted below the stated

Minimum Rate.

20. RELEASE AND ASSIGNMENT OF FIRM TRANSPORTATION SERVICES

20.1 Capacity Eligible for Release

(a) Shippers under Rate Schedule FT shall be

permitted to release their capacity on a

temporary or permanent basis, in accordance