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Portland Natural Gas Transmission System   Original Sheet No. 332 : Effective
FERC Gas Tariff
Portland Natural Gas Transmission System


                   GENERAL TERMS AND CONDITIONS (Continued)
   
  8.   BALANCING AND PENALTIES
   
       8.1  Daily Balancing Obligations.
   
            (a)  Transporter.  To the best of its ability, Transporter shall
monitor Nominations, deliveries, and receipts for each transportation
transaction and, based upon available information, notify Shipper(s) of any
scheduling, imbalance, or overrun problem which has occurred, or may occur
unless corrective action is taken.  Transporter shall not be obligated on any
Day to receive from Shipper at any Receipt Point, or make available to Shipper
at any Delivery Point, any quantity of Gas in excess of such Shippers
Scheduled Quantity for that Receipt or Delivery Point.  Any allocation of
scheduled receipt or delivery quantities due to operational conditions
occurring during the gas Day shall be reported to the affected Shipper(s)
within one Business Day of the end of the Day in which such allocation
occurred.
   
            (b)  Shippers.
   
                 (1)  Each Shipper shall ensure that each of its Scheduled
Quantities on any Day does not exceed its MDQ for the applicable Primary
Receipt Point or Primary Delivery Point; provided, however, that Shipper may
exceed its MDQ to deliver make-up quantities when capacity is available and
subject to the capacity allocation procedures of Section 7 herein.  If Shipper
designates Secondary Receipt and/or Delivery Point(s) on any Day, the sum of
its Receipt Point Scheduled Quantities on that Day shall not exceed the sum of
the MDQs specified in Schedule 1 of its Gas Transportation Contract, and the
sum of its Delivery Point Scheduled Quantities shall not exceed the sum of the
MDQs specified in Schedule 2 of its Gas Transportation Contract.
   
                 (2)  For each Day on which Transporter receives Gas from or
delivers Gas to multiple Shippers at a common Receipt or Delivery Point, and
on which the total quantities received or delivered exceed or fall short of
the sum of all affected Shippers Scheduled Quantities for such Day, Shippers
whose quantities are commingled at such Delivery or Receipt Point not subject
to an Operational Balancing Agreement shall have the obligation to accept the
pre-determined allocation method in effect for that meter for each allocation
period for which the Shipper has scheduled deliveries or receipts.
Transporter shall allocate quantities in accordance with Operational Balancing
Agreements with the operator of the common Receipt or Delivery Point to the
extent operational balancing agreements are in effect at such points.
   
                 (3)  To the best of its ability, Shipper shall on a Daily
basis:







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