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Portland Natural Gas Transmission System   Original Sheet No. 368 : Effective
FERC Gas Tariff
Portland Natural Gas Transmission System


                   GENERAL TERMS AND CONDITIONS (Continued)
   
14.  LATERAL FACILITIES POLICY
   
        14.1 Transporters Policy.  Transporter may own, construct, and
operate transmission laterals and related facilities, and intends to apply for
rolled-in rate treatment for the cost of these facilities at the FERC, as long
as this cost is supported by long-term firm transportation agreements, and
rolled-in rate treatment does not cause the transportation rates paid by other
firm shippers to increase.  Transporter will agree to own, construct and
operate such laterals and related facilities for new as well as existing
Shippers as long as Transporters laterals criteria are met.
   
        14.2 Provisos.  Nothing in this Section 14 shall:
   
        (a) require Transporter to file an application for a certificate of
public convenience and necessity under Section 7(c) of the Natural Gas Act; or
   
        (b) prevent Transporter from contesting an application for service
filed pursuant to Section 7(a) of the Natural Gas Act.
   
        Transporter reserves the right to seek a waiver of the policy set
forth in this Section 14, on a basis that is not unduly discriminatory.







Issued by: David J.Haag, Rates And Tariff Specialist
Issue date: 07/28/06 Effective date: 09/01/06