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. 144 Original Sheet No. 144 : Effective

(b) The capacity release addendum number will

be issued within one hour of the award

posting. Nomination is possible beginning

at the next available nomination cycle for

the effective date of the capacity release

addendum; however, in no event will Gas

flow on Replacement Shipper's

Transportation Agreement prior to the

effective date of the release as posted in

the Shipper Notice.

(c) Replacement Shipper is responsible for

payment of the applicable Reservation

Charge, and any surcharges thereon, in the

amount of its winning bid. Replacement

Shipper is also responsible for all other

billings, e.g., commodity rate and

applicable commodity surcharges. In the

event of payment default, subject to

Section 26 herein, Transporter may elect to

terminate that Replacement Shipper's

Capacity Release Transportation Agreement

which shall terminate all service

thereunder utilized by the Replacement

Shipper.

(d) Once Replacement Shipper or PRS is notified

of a winning bid, such Replacement Shipper

or PRS shall have all the rights and

obligations specified under the Releasing

Shipper's Rate Schedule, the Releasing

Shipper's Transportation Agreement and the

General Terms and Conditions of this Tariff

including the right to release firm

capacity pursuant to this Section unless

the conditions prescribed by the Shipper

Notice require otherwise. Transporter

shall allow re-releases on the same terms

and basis as the primary release (except as

prohibited by the Commission's

regulations).

(e) Replacement Shipper shall have no Right of

First Refusal with respect to the released

capacity, unless such release is permanent.

20.7 Rights and Obligations of Transporter