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Portland Natural Gas Transmission System   Original Sheet No. 301 : Effective
FERC Gas Tariff
Portland Natural Gas Transmission System

                         GENERAL TERMS AND CONDITIONS
       These General Terms and Conditions shall apply to all service rendered
by Transporter and shall be considered a part of Transporters Rate Schedules
and Gas Transportation Contracts. Except as provided in Section 3.5 of each
Rate Schedule, these General Terms and Conditions shall control in the event
of a conflict between these General Terms and Conditions and any Gas
Transportation Contract.
       Except where another meaning is expressly stated, the following terms
shall have the following meanings when used in this Tariff and in any Gas
Transportation Contract incorporating this Tariff.  Whenever the singular or
neuter is used the same shall be construed as meaning the plural or corporate
and vice versa where the context so requires:
       2.1  British Thermal Unit or BTU: shall mean the amount of heat
required to raise the temperature of one pound of distilled water 1 degree
Fahrenheit at 60 degrees Fahrenheit, at a constant pressure of 14.73 pounds
per square inch absolute.
       2.2  Business Day: shall mean the period from 8:00 a.m. to 6:00 p.m.
Eastern Time, Monday through Friday, excluding Federal banking holidays for
transactions in the U.S., and similar holidays for transactions occurring in
Canada and Mexico.
       2.3  Commencement Date: shall mean the date on which service begins, as
set forth in a Gas Transportation Contract, or the date on which the
facilities required to enable Transporter to render service to Shipper are
constructed, installed and made operational, as set forth in Transporters
initial written notice to Shipper, which shall be given at least thirty (30)
Days in advance of the estimated date ("Advance Notice"), followed by a
written notice to transport Shippers Gas by Transporter ("Final Notice"),
which shall be given not less than five (5) Days prior to the date on which
the service shall begin, unless Shipper and Transporter mutually agree to a
shorter notice period.
       2.4  Cubic Foot: shall mean the volume of Gas which occupies one cubic
foot when such Gas is at a temperature of 60 degrees Fahrenheit, and at a
pressure of 14.73 pounds per square inch absolute.
       2.5  Day or Daily: shall mean a period of twenty-four consecutive
hours, beginning and ending at 9:00 a.m. Central Clock Time.

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