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. 146 Original Sheet No. 146 : Effective

(1) The last date this Tariff provision

shall be effective;

(2) The expiration date of Releasing

Shipper's Transportation Agreement

when the release is for the full term

of such agreement; or

(3) The expiration date specified by the

Releasing Shipper in the Shipper

Notice.

20.9 Billing Adjustments to Releasing Shipper

(a) Unless otherwise agreed upon by the

Releasing Shipper, Transporter shall credit

Releasing Shipper's monthly bill to reflect

the Reservation Charge (including

surcharges, if any) invoiced to Replacement

Shipper, provided however, that Transporter

and Releasing Shipper may, in connection

with a Negotiated Rate based on a rate

design other than straight fixed variable,

agree upon a payment obligation and

crediting mechanism that varies from or is

in addition to the provisions of this

Section 20.9 in order to establish the

basis of accounting for revenues from a

Replacement Shipper as a means of

preserving the economic bases of the

Negotiated Rate. In the event of a release

with a volumetric rate, the volumetric rate

shall be no greater than the 100% load

factor equivalent of the maximum rate

currently applicable to the service

released and shall be credited to the

Releasing Shipper's monthly bill.

Replacement Shipper's payment of the

Commodity Charge will be retained by

Transporter.

(b) If Replacement Shipper fails to pay all or

any part of the Reservation Charge so

credited within thirty (30) days of its due

date, then such unpaid amount plus interest

will be charged to Releasing Shipper's next

monthly bill and will be due and payable by