Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 10/08/2003, Docket: RP04-102-001, Status: Effective

Original Sheet No. 158 Original Sheet No. 158 : Effective

26.3 Termination by Shipper - Upon the occurrence of

an Event of Default by Transporter under a

Transportation Agreement ("Agreement"), Shipper

may terminate the Agreement upon ten (10)

additional Days' prior written notice to

Transporter. Except as otherwise provided in the

Agreement, upon termination by Shipper, Shipper

shall pay to Transporter all payments owed to

Transporter for gas that flowed prior to

termination. In addition, Transporter and

Shipper may agree to a termination payment to be

paid by Transporter, which shall be equal to the

difference between the Negotiated Rate, if any,

and the next highest rate that Shipper would be

required to pay for equivalent capacity and

service from another transportation service

provider, multiplied by the quantity remaining to

be delivered to Shipper under the Transportation

Agreement.

26.4 Accounting Upon Termination - Any termination of

a Transportation Agreement pursuant to the

provisions of Sections 26.2 or 26.3 will be

without prejudice to the right of either

Transporter or Shipper to collect any amounts

then due to it, to offset amounts owed to it by

the other party from such amounts due to the

other party, and will be without prejudice to the

right of Shipper to receive any Gas that has been

delivered to Transporter at the Receipt Point but

which Transporter has not yet redelivered to the

Delivery Point(s), subject, however, to the

payment of the applicable charge set forth in the

terminated Transportation Agreement for such

transportation and resolution of any applicable

Gas imbalances, and without waiver of any remedy

to which the party not in default may be entitled

as a result of the defaulting party's default,

breach or violation of the terms of the

terminated Transportation Agreement.

26.5 Remedies - In the event of termination by either

Transporter or Shipper under GT&C Sections 26.2

or 26.3, in addition to the remedies set forth in