Feeling unfeminine after a clothing exchange party with the neighborhood girls, Hank offers Peggy a new pair of shoes. After finding that her usual place in Lubbock is out of business, she stumbles upon 'Clairissa's Closet', and a new best friend, Carolyn. They become the best of friends, until Peggy finds out that Carolyn is a he, and Carolyn finds that Peggy is a she.

When Bobby's snakes gets into the toilet Hank decides to call Animal Control. But instead of taking care of the problem they make the city believe that the problem is worse than it is causing panic. Now it is up to Dale to save the city.

The guys discuss what they want to pass on to their children, Bill becomes despondent because he doesnt have any. In an effort to cheer him up, they help Bill put together a Dauterive family reunion, only to be thwarted by the realization that Bill only has one living relative. Bill winds up sharing an incredible barbeque with his neighbors and teaches Bobby the secret sauce recipe.

When Lucky ditches Luanne to go stumping with Hank and the gang, Luanne accepts an invitation to attend Arlen High School's Senior Prom. Lucky's friends Mud Dobber and Elvin take it upon themselves to bully Luanne's 15-year-old date.

Hank is crestfallen when Cotton gives his beloved Cadillac to Cousin Dusty, however things get even worse when Dusty shows up at Hank's house with a reality TV show crew.

Peggy loses her job at The Arlen Bystander and begins a new career as a real estate agent. Meanwhile, after Dale buys a set of titanium golf clubs at a police auction, he gives the clubs to Hank. However, Hank has trouble playing with a set of clubs that once belonged to a convicted cuddleer.

After Bill survives a roof cave-in over his bed he has a religious experience which involves a romantic liaison with Reverend Stroup.

Hank becomes obsessed with a video game about propane. Meanwhile, Bobby trains for the Presidential Fitness Test.

Peggy tries to reach the pinnacle of real estate success by selling houses in the exclusive neighborhood of Arlen Heights, but she winds up selling pots door to door. Meanwhile the real Rusty Shackleford pays a visit to Dale.

Nancy turns to her mother for help when the stress of home life and unresolved feelings for Redcorn cause her hair to fall out.

Bill has to shape up for an upcoming Army physical, but when he becomes friends with a group of body builders he becomes aggressive and develops a bad attitude. Hank and the gang have to come to the rescue.

Season finale. When Lucky wants to give Luanne the expensive wedding that she desires, he sues Dale with a frivolous lawsuit after having an accident on the job. After Lucky's lawyer finds out that Dale does not have insurance, he goes after Strickland Propane.