Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

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

Original Sheet No. 159 Original Sheet No. 159 : Effective

those Sections, the parties shall have such other

rights and remedies as may exist at law or in

equity.

27. CHANGES IN RATES OR GENERAL TERMS AND CONDITIONS

Unless otherwise agreed, Transporter may, from time to

time propose and file with FERC, in accordance with

Section 4 of the Natural Gas Act, changes, amendments,

revisions, and modifications to (a) Transporter's rates

and rate schedules, and/or (b) the General Terms and

Conditions of Transporter's tariff, provided, however,

that unless they have otherwise agreed, Shippers shall

have the right to intervene in and/or protest any such

changes before FERC (or any successor governmental

agency) or other authorities and to exercise any other

rights that Shippers may have with respect thereto.

28. ARBITRATION

Any controversy arising out of or relating to any

Agreement, if not resolved by the parties, may, by

mutual agreement, be submitted to arbitration under the

provisions of the Texas General Arbitration Act, Tex.

Civ. Prac. & Rem. Code 171.001 et seq., as it may be

amended from time to time and as modified by any

Agreement. When the parties agree to arbitration, the

controversy shall be determined by a board of three

arbitrators to be selected as follows: either party

may, at the time a board of arbitration is desired,

notify the other of the name of any arbitrator of its

choosing, and the other party shall, within ten (10)

Days, notify the party desiring arbitration of the name

of its arbitrator. The two arbitrators shall, within

ten (10) Days after the notification of the identity of

the second arbitrator, choose the third arbitrator.

If they are unable to agree, the parties shall make

application within two (2) Days to the Senior Judge of

the United States District Court for the Northern

District of Texas, who (acting in an individual and not

official capacity) shall appoint the third arbitrator.

All arbitrators appointed pursuant to this Section 28

shall be third-party individuals qualified by

education, knowledge, and experience to pass on the

matters submitted for arbitration and shall not be

employed by nor regularly receive remuneration from

either party other than for arbitration services.