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. 161 Original Sheet No. 161 : Effective

underpayment has been made, and if the other

party disagrees with the report, both parties

shall cooperate in an attempt to resolve any

differences regarding the report. If any

difference regarding an audit report is not

resolved within thirty (30) Days following

delivery of that report, Shipper and Transporter

may, by mutual agreement, submit the controversy

to arbitration, and failing such agreement, may

use any legal means at their disposal to resolve

the dispute. The amount of the underpayment or

overpayment, as the case may be, shall promptly

be paid to the party to whom it is owed by the

other party upon final resolution of any

difference.

29.2 Governing Laws - Any Transportation Agreement

made pursuant to Transporter's Rates Schedules

shall be construed under and in accordance with

the substantive laws of the State of Texas,

except any provision of such laws that requires

the application of the laws of another state.

29.3 Government Contract Clauses - To the extent

applicable, Transporter shall be bound by any

government contract clauses that are incorporated

into a Transportation Agreement, and any other

clauses which Shipper has notified Transporter

are required by governmental statutes, rules

or regulations to be included in a Transportation

Agreement. No Transportation Agreement shall be

interpreted to require Transporter to be bound by

the provisions of any law unless that law itself

provides for applicability to Transporter.

29.4 Cumulative Remedies - Pursuit, by either

Transporter or Shipper, of any remedy available

under this Tariff or any Transportation Agreement

as may exist between Transporter and Shipper,

shall not constitute a waiver of any other remedy

that may be available. No waiver of any event of

default or other breach of an Agreement shall be

deemed or construed to constitute a waiver of any

subsequent occurrence of the same event of

default or breach of the same provision of the

Agreement.