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. 145 Original Sheet No. 145 : Effective

(a) Transporter shall determine the best bid

based upon the best bid criteria.

Transporter shall have the right, but not

the obligation, to reject, in whole or in

part, the terms of any Shipper Notice or

bid which is discriminatory or conflicts

with any order or regulation issued by the

FERC, or provision of the Transportation

Agreement, Rate Schedule or General Terms

and Conditions. Such Shipper Notice shall

be rejected in its entirety unless Shipper

permits a partial rejection. Transporter

shall provide notification to Shipper,

through the Web Site, of the reason(s) for

rejecting a release notice with the notice

of rejection.

(b) Transporter shall not have any liability to

any Shipper, Releasing Shipper, Replacement

Shipper, bidder or any other party as a

result of Transporter's performance of its

obligations under its capacity release

program, and such Shippers, Releasing

Shippers, Replacement Shippers, and bidders

shall indemnify Transporter from and

against any and all losses, damages,

expenses, claims, suits, actions and

proceedings whatsoever threatened, incurred

or initiated as a result of Transporter's

performance hereunder, except to the extent

such loss, damage, expense, claim, suit,

action or proceeding is the result of

Transporter's gross negligence, undue

discrimination or willful misconduct,

provided that Transporter shall be

responsible for direct damages, if any,

resulting from Transporter's own

negligence.

20.8 Term

(a) Any release under this Section 20 shall be

for a minimum term of at least one Gas Day.

(b) Any release under this Section 20 shall be

for a maximum term expiring on the earlier

of: