FERC GAS TARIFF
   
   
                          Second Revised Volume No. 1
                      (Supersedes Original Volume No. 1)
   
   
   
                   PORTLAND NATURAL GAS TRANSMISSION SYSTEM
   
   
   
   
                                Filed With The
   
                     FEDERAL ENERGY REGULATORY COMMISSION
   
   
   
   
                     Communications Concerning This Tariff
   
                            Should Be Addressed To:
   
   
                Portland Natural Gas Transmission System, L.P.
   
                               One Harbour Place
   
                        Portsmouth, New Hampshire 03801

                               TABLE OF CONTENTS
   
Description                                                  Sheet No.
   
Preliminary Statement                                        3

System Map                                                   4
 
Rates                                                        100
 
Rate Schedules
   
FT -    Firm Transportation Service                          200

IT -    Interruptible Service                                206
   
PAL -   Park and Loan Service                                209

FT-FLEX - Limited Firm Transportation Service                215

HRS -   Hourly Reserve Service                               220
   
General Terms and Conditions - Table of Contents             300
   
Introductory Statement                                       301
Definitions                                                  301
Requests for Service/Credit Evaluation                       310
General Service Conditions                                   317
Quality of Gas                                               318
Measurement of Gas and Measurement Equipment                 320
Nominations and Scheduling                                   323
Balancing and Penalties                                      332
Receipt Points and Delivery Points                           340
Service Interruptions and Priorities                         341
Capacity Release                                             343
Segmented Capacity                                           362
Pregranted Abandonment and Right of First Refusal            363
Interactive Internet Website                                 365
Lateral Facilities Policy                                    368
Billings and Payments                                        369
Cost Reimbursements                                          372
ACA Charge                                                   374
Warranty of Title and Possession of Gas                      375
Indemnity                                                    377
Liability and Remedies                                       378
Supervening Laws and Changes by the Transporter              381
Marketing Affiliate Rule                                     382
Miscellaneous                                                383
Compliance with WGQ Standards                                385

Pro Forma Contracts - Table of Contents                              500
   
Firm Transportation Service                                          501
   
Interruptible Service                                                513
   
Master Capacity Release Agreement                                    522
   
Master Gas Transportation Contract with Replacement Shipper          528
   
Operational Balancing Agreement                                      540
   
Park and Loan Service Contract                                       546
   
Request for Service                                                  552
   
FT-Flex Limited Firm Transportation Service                          560
   
Hourly Reserve Service                                               571 
  
Negotiated Rates                                                     650

                             PRELIMINARY STATEMENT
   
Portland Natural Gas Transmission System ("Transporter"), a Partnership formed
under the laws of the State of Maine, is a natural gas company engaged in the
business of transporting on its System natural gas owned by Shippers.
Transporters System extends in a southeasterly direction from a point on the
international border between the United States and Canada near Pittsburg, New
Hampshire, where Transporters facilities interconnect with those of
TransCanada PipeLines Limited, through the States of New Hampshire, Vermont,
and Maine to an interconnection with the facilities of Tennessee Gas Pipeline
Company near Dracut, Massachusetts.  Transporter shall transport natural gas
for shippers only pursuant to written contracts, in the form of agreements
contained herein, and pursuant to authorization granted by the Federal Energy
Regulatory Commission.  Transporter is not a common carrier.

   
   
   
   
   
   
                          Original Sheet No. 4 (Map)
               is not required to be filed in electronic format

   
   
   
                           ORIGINAL SHEET NOS. 5-99
                        HAVE NOT BEEN ISSUED, BUT HAVE
                         BEEN RESERVED FOR FUTURE USE

Statement of Transportation Rates
                               (Rates per DTH)
   
Rate       Rate                 Base           ACA Unit       Current
Schedule   Component            Rate           Charge 1/      Rate
   
FT         Recourse Reservation Rate
           -- Maximum           $27.4017       ---------      $27.4017
           -- Minimum           $00.0000       ---------      $00.0000
   
           Seasonal Recourse Reservation Rate
           -- Maximum           $52.0632       ---------      $52.0632
           -- Minimum           $00.0000       ---------      $00.0000 

           Recourse Usage Rate
           -- Maximum           $00.0000       $00.0017       $00.0017
           -- Minimum           $00.0000       $00.0017       $00.0017
   
FT-FLEX    Recourse Reservation Rate
           --Maximum            $18.3920        -------       $18.3920
           --Minimum            $00.0000        -------       $00.0000
   
           Recourse Usage Rate
           --Maximum            $00.2962       $00.0017       $00.2979
           --Minimum            $00.0000       $00.0017       $00.0017
   
      The following adjustment applies to all Rate Schedules above:
   
             MEASUREMENT VARIANCE:
   
             Minimum          down to -1.00%
             Maximum          up to +1.00%
_________________
   
1/     ACA assessed where applicable under Section 154.402 of the
Commission's regulations and will be charged pursuant to Section 17 of
the General Terms and Conditions at such time that initial and successive
ACA assessments are made.

Statement of Transportation Rates
(Rates per DTH)
   
   
Rate          Rate         Base     	 ACA Unit       Current
Schedule      Component    Rate      	 Charge 1/      Rate  

FT         Short Term Recourse Reservation Rate
           -- Maximum     See Table 1 Below
           -- Minimum     $00.0000       ---------   	$00.0000

           Recourse Usage Rate
           -- Maximum     $00.0000     $00.0017    	$00.0017
           -- Minimum     $00.0000     $00.0017    	$00.0017

   
IT         Recourse Usage Rate
           -- Maximum     See Table 1 Below
           -- Minimum     $00.0000     $00.0017    	$00.0017


PAL        Usage Rate
           -- Maximum	   See Table 1 Below
           -- Minimum     $00.0000	 $00.0017	$00.0017

-- Table 1 --
The following maximum rates apply (by month, as applicable) to all service provided pursuant to: (a) Short Term FT service under Rate Schedule FT (i.e., firm service that has a term of less than one year); (b) IT Service under Rate Schedule IT; and (c) Park and Loan Service under Rate Schedule PAL.

Month		Rate		Maximum Base	  ACA Unit	Current
		Multiplier 	Unit Rate 1/	  Charge 2/	 Rate
				($/Dth/day)

January		150%		$1.3513		  $0.0017	$1.3530
February	150%		$1.3513		  $0.0017	$1.3530
March		60%		$0.5405		  $0.0017	$0.5422
April		60% 		$0.5405		  $0.0017	$0.5422
May		60% 		$0.5405		  $0.0017	$0.5422
June 		100%		$0.9009		  $0.0017	$0.9026
July		100% 		$0.9009		  $0.0017	$0.9026
August		100% 		$0.9009		  $0.0017	$0.9026
September	60% 		$0.5405		  $0.0017	$0.5422
October		60% 		$0.5405		  $0.0017	$0.5422
November	150% 		$1.3513		  $0.0017	$1.3530
December	150% 		$1.3513		  $0.0017	$1.3530

1/ The Maximum Base Unit Rate is stated in $/Dth/Day.  For Short Term FT Service contracts with terms of one month or greater, the maximum Short Term Recourse Reservation Rate shall be calculated as 30.4167 x the Maximum Base Unit Rate for each applicable month.
   
2/ ACA assessed where applicable under Section 154.402 of the Commission's regulations and will be charged pursuant to Section 17 of the General Terms and Conditions at such time that initial and successive ACA assessments are made.

Statement of Transportation Rates

(Rates per DTH)


 

Rate Rate Base ACA Unit Current

Schedule Component Rate Rate 1/ Charge


 

HRS Recourse Capacity Reservation Rate


 

Per Dth of MDQ Monthly for all Flow Rates

--Maximum Rate $13.7008 ------- $13.7008

--Minimum Rate $00.0000 ------- $00.0000


 

Recourse Deliverability Reservation Rate

Per Dth of MDQ Monthly:

--Maximum Rates

4.16%, 1/24 MDQ Hourly Flow Rate $13.7008 ------- $13.7008

5.00%, 1/20 MDQ Hourly Flow Rate $16.4410 ------- $16.4410

6.25%, 1/16 MDQ Hourly Flow Rate $20.5513 ------- $20.5513

7.14%, 1/14 MDQ Hourly Flow Rate $23.4832 ------- $23.4832

8.33%, 1/12 MDQ Hourly Flow Rate $27.4017 ------- $27.4017


 

--Minimum Rates $00.0000 ------- $00.0000


 

Recourse Usage Rate

Usage-1

--Maximum $00.0000 $00.0017 $00.0017

--Minimum $00.0000 $00.0017 $00.0017


 

Usage-2 (Authorized Overrun) 2/

--Maximum

4.16%, 1/24 MDQ Hourly Flow Rate $00.9009 $00.0017 $00.9026

5.00%, 1/20 MDQ Hourly Flow Rate $00.9910 $00.0017 $00.9927

6.25%, 1/16 MDQ Hourly Flow Rate $01.1261 $00.0017 $01.1278

7.14%, 1/14 MDQ Hourly Flow Rate $01.2225 $00.0017 $01.2242

8.33%, 1/12 MDQ Hourly Flow Rate $01.3513 $00.0017 $01.3530

--Minimum $00.0000 $00.0017 $00.0017


 

The following adjustment applies to all Rate Schedules:


 

MEASUREMENT VARIANCE:


 

Minimum down to -1.00%

Maximum up to +1.00%

_________________


 

1/ ACA assessed where applicable under Section 154.402 of the

Commission's regulations and will be charged pursuant to Section 17 of

the General Terms and Conditions at such time that initial and successive

ACA assessments are made.


 

2/ Usage-2 (Authorized Overrun) applies to volumes exceeding Shipper's MDQ

on any day or MHQ for any hour, but only to the extent such volumes are

nominated by Shipper and scheduled by Transporter.

   
   
   
                         ORIGINAL SHEET NOS. 103 - 199
                        HAVE NOT BEEN ISSUED, BUT HAVE
                         BEEN RESERVED FOR FUTURE USE

                               RATE SCHEDULE FT
                          FIRM TRANSPORTATION SERVICE
   
   
  1.   AVAILABILITY
   
       This Rate Schedule FT is available for service by Transporter to any
  Shipper, where: 
   
            (a)  Shipper has made a valid request, as defined in Section 3 of
the General Terms and Conditions, or Shipper has obtained released capacity
under Section 11 of the General Terms and Conditions;
   
            (b)  Shipper has met Transporters financial creditworthiness
criteria as set forth in Section 3 of the General Terms and Conditions;
   
            (c)  Shipper and Transporter have entered into a Gas
Transportation Contract for Firm Transportation Service under this Rate
Schedule;
   
            (d)  Transporter has capacity available to render the service
pursuant to the General Terms and Conditions or Shipper will utilize firm
capacity released under Section 11 of the General Terms and Conditions;
   
            (e)  all necessary contracts have been or will be entered into by
or on behalf of Shipper for the acquisition of Gas, for the delivery of Gas to
Transporter at one or more Receipt Points on the System, and/or the further
transportation of Gas from one or more Delivery Points on the System, as
applicable; and
   
            (f)  all necessary regulatory and governmental approvals to
purchase and sell, transport and, if appropriate, export and/or import the Gas
to be transported by Transporter have been obtained.
   
  2.   APPLICABILITY AND CHARACTER OF SERVICE
   
       This Rate Schedule shall apply to firm service pursuant to a
bilaterally executed Gas Transportation Contract for service under this Rate
Schedule.  Service rendered under this Rate Schedule shall consist of:
   
            (a)  the receipt by Transporter of Shippers Gas at the Receipt
Point(s) specified in the executed Gas Transportation Contract;

                      RATE SCHEDULE FT (Continued)
   
	(b)  the transportation of Gas up to Shipper's Maximum Contract
Demand for the Effective Service Period on a firm Daily basis either by
forwardhaul, or by displacement, exchange or backhaul; and
   
	(c)  the delivery of Gas by Transporter to or for the account of
Shipper at Delivery Point(s) specified in the executed Gas Transportation
Contract.

	(d) Shipper may nominate as Authorized Overrun and Transporter may schedule, pursuant to Section 7.4 of the General Terms and Conditions contained herein, an amount above its MDQ during any Day.
 
	Service rendered under this Rate Schedule is not subject to curtailment or interruption during the Effective Service Period, except as provided in the General Terms and Conditions.
   
 3.   RATES AND CHARGES
       3.1  Applicable Rates.  The applicable maximum and minimum FT recourse
reservation rates, Seasonal recourse reservation rate, Short Term recourse reservation rate, maximum and minimum usage rates and applicable unit charges for service under this Rate Schedule are set forth in the currently effective Sheet No. 100 of this FERC Gas Tariff and are hereby incorporated herein.
   
       3.2  Monthly Bill.  The Monthly bill shall consist of:
   
	(a)  Reservation Charge.  For each Month of the Effective Service
Period indicated on Schedules 1 and 2 of the FT Transportation Contract, the
reservation charge payable by Shipper shall,  unless otherwise agreed upon by
Transporter and Shipper as provided herein, be equal to the applicable maximum
recourse reservation rate or the maximum Seasonal recourse reservation rate or the maximum Short Term recourse reservation rate, as applicable, multiplied by the Shipper's Maximum Contract Demand as specified in Shipper's FT Transportation Contract.
   
	(b)  Usage Charge.  For each Month, the usage charge payable by
Shipper shall, subject to any discount as provided herein, be equal to the
applicable maximum usage rate multiplied by the sum of the Receipt Point
Scheduled Quantity or Quantities during such Month.
   
	(c)  ACA Charge.  For each Month, the ACA charge payable by
Shipper shall be equal to an amount obtained by multiplying the sum of the
Receipt Point(s) Scheduled Quantity or Quantities during such Month, by the
ACA unit charge.

	(d) Authorized overrun charge.  For each Month, the maximum authorized overrun charge payable by Shipper shall be equal to the applicable maximum rate for service under Rate Schedule IT, multiplied by the sum of the Authorized Overrun Scheduled Quantity or Quantities during such Month for such Shipper.

                         RATE SCHEDULE FT (Continued)
   
        (d)  Scheduling, Imbalance and Overrun Penalties.  Transporter
shall charge Shipper any applicable scheduling, imbalance and overrun
penalties in accordance with Section 8 of the General Terms and Conditions.
   
        (e)  Other Charges.  Any other charges as may be applicable
from time to time pursuant to the General Terms and Conditions or as
otherwise authorized by the FERC.
   
        (f)  Capacity Release Credits.  To the extent Shipper releases
capacity in any Month pursuant to Section 11 of the General Terms and
Conditions, such Shipper shall receive a credit representing the Monthly
reservation charge simultaneously billed to the Replacement Shipper, minus all
applicable fees described in Section 11.15 of the General Terms and
Conditions. Nothing in this Section 3.2(f) relieves Shipper of its obligation
to pay to Transporter the full amount of the reservation charge for any Month
in which the Replacement Shipper fails to pay all or any portion of the
Replacement Reservation Charge.
   
       3.3  Discounted Rates.  For purposes of administering rates under this
Rate Schedule FT, Transporter shall have the right to discount the maximum
reservation rate and maximum usage rate for service under this Rate Schedule
FT and to charge a lower rate for some or all of the services performed under
this Rate Schedule; provided, however, that in no event shall rates charged
under this Rate Schedule be less than the minimum reservation rate and minimum
usage rate for firm service.  Transporter shall not be obligated to offer
service at discount rates, however, discounted rates will not be made on an
unduly discriminatory basis and will be made available to all similarly 
situated customers.
   
        A Shipper with a previously negotiated rate discount limited to
service at specific receipt and delivery points may request that such
discounted rate apply to alternate points if Shipper chooses to release
capacity or use flexible receipt and delivery point rights.  There shall be a
rebuttable presumption that Shipper will retain its discounted rate when
utilizing such points if Transporter currently grants discounts to another
Shipper receiving transportation service utilizing such points.  However,
Transporter can rebut this presumption by demonstrating that Shipper is not
similarly situated to the Shipper receiving the discount at those points.  If
the discount is retained, Shipper shall pay the higher of its contractual
discounted rate or the highest discounted rate being applicable to those
points.
   
        On any business day, the request to transfer the discount must be
submitted at least two hours prior to the nomination that would use the
discount at alternate points.  Transporter shall respond to the request within
two hours of receipt; however, any request received after 4:00 p.m. Central
Clock Time on any Business Day shall be responded to by 9:00 a.m. Central
Clock time on the following business day.

   
        3.4  Measurement Variance.  Reservation and usage charges shall be
based on Shippers applicable monthly Maximum Contract Demand and Receipt
Point Scheduled Quantities, respectively, irrespective of whether the
applicable monthly Measurement Variance Factor is positive or negative.
Shipper shall receive in-kind adjustments to Scheduled Quantities in order to
account for positive and negative Measurement Variance Quantities. Transporter
shall publish the applicable monthly Measurement Variance Factor on its
Interactive Internet Website.  Such published Measurement Variance Factor will
be bound by maximum and minimum percentages set forth on currently effective
Sheet No. 100 of this tariff.

               RATE SCHEDULE FT (Continued)

3.5 Notwithstanding any provision of Transporter's Tariff to the contrary, Transporter and Shipper may mutually agree in writing to rates, rate components, charges, or credits for service under this Rate Schedule that differ from those rates, rate components, charges, or credits that are otherwise prescribed, required, established or imposed by this Rate Schedule or by any other applicable provision of Transporter's effective FERC Gas Tariff. If Transporter agrees to such negotiated rate(s), then such negotiated rate(s) shall be set forth in the Gas Transportation Contract and shall be effective only for the period agreed upon by Transporter. During such period, the negotiated rate(s) shall govern and apply to the Shipper's service and the otherwise applicable rate, rate component, charge, or credit (i.e., any reduction in rates which might otherwise apply) which the parties have agreed to replace with the negotiated rate(s), shall not apply to, or be available to, the Shipper. At the end of such period, the otherwise applicable maximum rates or charges shall govern the service provided to Shipper, unless otherwise agreed by Transporter and Shipper. Only those rates, rate components, charges, or credits identified by Transporter and Shipper in writing as being superseded by a negotiated rate(s) shall be ineffective during the period that the negotiated rate is effective; all other rates, rate components, charges, or credits (i.e., any reduction in rates which might otherwise apply) prescribed, required, established for service under this Rate Schedule, shall remain in effect. Transporter shall file with the Commission pursuant to its current policies and/or regulations tariff sheets describing the services being provided pursuant to this Section 3.5. All services provided hereunder are available to all similarly situated Shippers on a non-discriminatory basis.

3.6	RATE SCHEDULE FT RESERVATION CHARGE CREDITING MECHANISM 

(a)	In the event that during a Fiscal Period, as defined in Subsection 3.6(c) below, the total revenue PNGTS collects for rendering jurisdictional services is in excess of twice the annual cost of service applicable for such period, as established in the resolution of Company's last NGA Section 4 general rate case (such difference constituting the "Excess Revenues"), then a Short Term Service Revenue Credit calculated pursuant to Subsection 3.6(b) below shall be credited by Company.

(b)	Long Term FT Shippers may receive the Short Term Service Revenue Credit when such current Long Term FT Shipper has paid Company the Rate Schedule Long Term FT Maximum Recourse Reservation Charges in accordance with Section 15.2 of the General Terms and Conditions of PNGTS' FERC Gas Tariff during the Fiscal Period used to calculate the Short Term Service Revenue Credit.  The Short Term Service Revenue Credit shall be 75% of the Excess Revenues received during an applicable Fiscal Period. No later than seventy (70) days from the end of each Fiscal Period, the Short Term Service Revenue Credit shall be reflected, in proportion to the Rate Schedule FT Long Term Maximum Recourse Reservation Charges paid by each Shipper receiving FT Long Term service, during the same subject Fiscal Period on such Shipper's invoice.

(c) For purposes of this Section 3.6, Fiscal Period shall be defined as each biennial anniversary of the first day of January following the year in which this Section 3.6 is in effect. 

(d)	For purposes of this Section 3.6, the phrase Long Term means an FT service agreement of greater than two years in duration.

(e)	For purposes of this Section 3.6, the phrase Short Term Service means service performed under Rate Schedules IT and PAL of any duration, and FT service rendered pursuant to service agreements with a term of less than one year.



4. GENERAL TERMS AND CONDITIONS

Shipper shall provide Transporter with such information as is needed to meet the requirements placed on Transporter pursuant to 18 C.F.R. Part 284. All of the General Terms and Conditions and any revisions thereof that may be made effective from time to time hereafter, shall apply to and are made a part of this Rate Schedule.

                               RATE SCHEDULE IT
                     INTERRUPTIBLE TRANSPORTATION SERVICE
   
   
1.   AVAILABILITY
   
       This Rate Schedule IT is available for service by Transporter to any
  Shipper, where:
   
            (a)  Shipper has made a valid request, as defined in Section 3 of
  the General Terms and Conditions;
   
            (b)  Shipper has met Transporters financial creditworthiness
  criteria as set forth in Section 3 of the General Terms and Conditions;
   
            (c)  Shipper and Transporter have entered into a Gas
Transportation Contract for Interruptible Transportation Service under this
Rate Schedule;
   
            (d)  Transporter has capacity available to render the service
  pursuant to the General Terms and Conditions;
   
            (e)  all necessary contracts have been or will be entered into by
or on behalf of Shipper for the acquisition of Gas, for the delivery of such
Gas to Transporter at one or more Receipt Points on the System, and/or the
further transportation of Gas from one or more Delivery Points on the System,
as applicable; and
   
            (f)  all necessary regulatory and governmental approvals to
purchase and sell, transport and, if appropriate, export and/or import the Gas
to be transported by Transporter have been obtained.
   
  2.   APPLICABILITY AND CHARACTER OF SERVICE
   
This Rate Schedule shall apply to all interruptible service pursuant to a
bilaterally executed Gas Transportation Contract for service under this Rate
Schedule, whether rendered by forwardhaul or by displacement, exchange or
backhaul.  Service rendered under this Rate Schedule is subject to curtailment
or interruption as Transporter deems necessary.

                         RATE SCHEDULE IT (Continued)
   
3.   RATES AND CHARGES
   
        3.1 Applicable Rates.  The applicable maximum and minimum usage rates
and applicable unit charges for service under this Rate Schedule are set forth
in the currently effective Sheet No. 100 of this FERC Gas Tariff and are
hereby incorporated herein.
   
        3.2 Monthly Bill.  The Monthly bill shall consist of:
   
        (a) Usage Charge.  For each Month, the usage charge payable by Shipper
shall, unless otherwise agreed upon by Transporter and Shipper as provided
herein, be equal to the applicable maximum usage rate multiplied by the sum of
the Receipt Point Scheduled Quantity or Quantities during such Month.
   
        (b) ACA Charge. For each Month, the ACA charge payable by Shipper
shall be equal to an amount obtained by multiplying the sum of the Receipt
Point(s) Scheduled Quantity or Quantities during such Month, by the ACA unit
charge.
   
        (c) Scheduling, Imbalance and Overrun Penalties.  Transporter shall
charge Shipper any applicable scheduling, imbalance and overrun penalties in
accordance with Section 8 of the General Terms and Conditions.
   
        (d) Other Charges.  Any other charges as may be applicable from time
to time pursuant to the General Terms and Conditions or as otherwise
authorized by the Federal Energy Regulatory Commission.
   
        3.3 Discounted Rates.  For purposes of administering rates under this
Rate Schedule IT, Transporter shall have the right to discount the maximum
usage rates for interruptible service under this Rate Schedule IT and to
charge a lower rate for some or all of the services performed under this Rate
Schedule; provided, however, that in no event shall rates charged under this
Rate Schedule be less than the minimum usage rate for interruptible service.
Transporter shall not be obligated to offer service at discount rates,
however, discounted rates will not be made on an unduly discriminatory basis
and will be made available to all similarly situated customers.

                         RATE SCHEDULE IT (Continued)
   
        3.4  Measurement Variance.  Usage charges shall be based on Shippers
applicable Receipt Point Scheduled Quantities irrespective of whether the
applicable monthly Measurement Variance Factor is positive or negative.
Shipper shall receive in-kind adjustments to Scheduled Quantities in order to
account for positive and negative Measurement Variance Quantities. Transporter
shall publish the applicable monthly Measurement Variance Factor on its
Interactive Internet Website.  Such published monthly Measurement Variance
Factor will be bound by maximum and minimum percentages set forth on currently
effective Sheet No. 100 of this tariff.
   
        3.5  Notwithstanding any provision of Transporters Tariff to the
contrary, Transporter and Shipper may mutually agree in writing to rates, rate
components, charges, or credits for service under this Rate Schedule that
differ from those rates, rate components, charges, or credits (i.e., any
reduction in rates which might otherwise apply) that are otherwise prescribed,
required, established or imposed by this Rate Schedule or by any other
applicable provision of Transporters effective FERC Gas Tariff.  If
Transporter agrees to such negotiated rate(s), then such negotiated rate(s)
shall be set forth in the Gas Transportation Contract and shall be effective
only for the period agreed upon by Transporter.  During such period, the
negotiated rate(s) shall govern and apply to the Shippers service and the
otherwise applicable rate, rate component, charge, or credit (i.e., any
reduction in rates which might otherwise apply) which the parties have agreed
to replace with the negotiated rate(s), shall not apply to, or be available
to, the Shipper.  At the end of such period, the otherwise applicable maximum
rates or charges shall govern the service provided to Shipper, unless
otherwise agreed by Transporter and Shipper.  Only those rates, rate
components, charges, or credits identified by Transporter and Shipper in
writing as being superseded by a negotiated rate(s) shall be ineffective
during the period that the negotiated rate is effective; all other rates, rate
components, charges, or credits (i.e., any reduction in rates which might
otherwise apply) prescribed, required, established for service under this Rate
Schedule, shall remain in effect.  Transporter shall make any filings with the
FERC necessary to effectuate a negotiated rate(s).
   
4.   GENERAL TERMS AND CONDITIONS
   
        Shipper shall provide Transporter with such information as is needed
to meet the requirements placed on Transporter pursuant to 18 C.F.R. Part 284.
All of the General Terms and Conditions and any revisions thereof that may be
made effective from time to time hereafter, shall apply to and are made a part
of this Rate Schedule.

                               RATE SCHEDULE PAL
                             PARK AND LOAN SERVICE
   
1.    AVAILABILITY
   
      This Rate Schedule PAL is available for parking and loaning natural gas
by Transporter for any Shipper, where:
   
            (a)   Shipper has made a valid request for Park and Loan Service
      as defined in Section 3 of the General Terms and Conditions and has met
      the creditworthiness standards stated therein;
   
            (b)   Shipper and Transporter have entered into a Park and Loan
Service Contract;
   
            (c)   Except where Shipper is both the ultimate consumer and
producer of Gas which is being parked or loaned under this Rate Schedule,
contracts have been entered into by or on behalf of Shipper for the
acquisition or sale of Gas, as the case may be, and for its delivery, to
Transporter at one or more Receipt Points on Transporters system;
   
            (d)   Either (i) Shippers facilities or the facilities where the
Gas is to be consumed interconnect with Transporters transmission system
at one or more Delivery Points of Transporters Master Delivery Point List
("MDPL"), or (2) contracts have been or will be entered into on behalf of
Shipper for the transportation of the Gas to and from Transporters system
to such facilities; and
   
            (e)   All necessary regulatory and governmental approvals to
      acquire and sell, transport and, if appropriate, export and/or import
      the Gas to be transported by Transporter have been obtained.
   
2.    APPLICABILITY AND CHARACTER OF SERVICE
   
      2.1   This Rate Schedule PAL and the rates established hereunder shall
apply to all Park and Loan Service rendered by Transporter. Park and Loan
Service is subject to the availability of capacity for the service. Park and
Loan Service is subject to curtailment or interruption as Transporter deems
necessary and as set forth in this Rate Schedule PAL, and in Section 10 of the
General Terms and Conditions. Transporter shall not be obligated to add any
facilities or expand the capacity of its system in any manner in order to
provide Park and Loan Service. Service rendered under this Rate Schedule shall
be provided for a minimum of a one day term.
   
      2.2   Maximum Loaned Quantity. For each Shipper seeking to enter into a
contract for service under this Rate Schedule, Transporter shall establish a
Maximum Loaned Quantity (MLQ). The MLQ applicable to each Shipper shall be the
maximum amount of gas, cumulative at all its Loan Points, that the Shipper is
entitled to be loaned by Transporter pursuant to this Rate Schedule.

      2.2   Park and Loan Service available under this Rate Schedule includes:
   
            (a)   Parking Service. Parking service shall consist of (i)
Transporters receipt of a Parked Quantity of gas from Shipper at the
Parking Point specified in Shippers nomination, (ii) Transporter holding
such Parked Quantities on Transporters system, and (iii) Transporters
subsequent return of the Parked Quantity to Shipper, or for Shippers
account, at the Parking Point.
   
            (b)   Loan Service. Loan Service shall consist of (i)
Transporters advancement of Loaned Quantity of gas to Shipper (up to the
Maximum Loaned Quantity specified in Shippers Park and Loan Service Contract,
at the point(s) specified in Shippers nomination); and (ii) Shippers
subsequent return of the Loaned Quantity and Transporters acceptance of such
quantity for Shippers account at the Loan Point.
   
      2.3   Subject to the availability of capacity, any Receipt or Delivery
Point on Transporters system may be nominated as a Parking Point or Loan
Point.
   
3.    ACCOUNT BALANCES; TRANSPORTATION; ASSIGNMENTS
   
      3.1   Transporter shall establish an account for each Shipper using this
service which reflects the Parked Quantity at each Parking Point and the Loan
Quantity at each Loan Point. Whenever Transporter receives Parked Quantity
from or delivers Loaned Quantity to a Shipper the quantities received or
delivered will be reflected in the Shippers account, as appropriate, for the
Parking or Loan Point at which they were received or delivered. When a Parked
Quantity or Loaned Quantity is returned, Transporter will credit the Shippers
account to reflect the transaction.
   
      3.2   Transporter shall return Parked Quantity and accept return of
Loaned Quantity only at the Parking Point where Shipper parked the Parked
Quantity, or the Loan Point where Transporter advanced the Loaned Quantity to
Shipper.
   
      3.3   In the event that Shipper wishes to move a Parked Quantity or
Loaned Quantity from one Parking or Loan Point to another Parking or Loan
Point on Transporters system, Shipper shall be responsible for arranging such
transportation in accordance with the provisions of Rate Schedule FT or IT and
the General Terms and Conditions.
   
      3.4   Shippers may assign between themselves Parked Quantity and Loaned
Quantity in accordance with the provisions of the Park and Loan Service
Contract, provided that (i) the Shipper obtaining such quantities complies
with the Tariff, and (ii) each Shipper submits the appropriate nomination to
Transporter in accordance with the provisions of Section 7 of this Tariff.
Transporter will assess all applicable transportation charges for such
transactions.

4.    RATES AND BILLING
      4.1   Rates. The rates for service hereunder are set forth in the
currently effective Sheet No. 101 of this FERC Gas Tariff and such rate sheet
is hereby incorporated herein by reference. The rates in this Rate Schedule
are subject to change pursuant to Section 21 of Pipelines General Terms and
Conditions and the PAL Service Agreement. Unless Pipeline and Shipper agree in
writing upon a rate for service provided hereunder, the rate applicable to a
Shipper for service hereunder shall be the applicable maximum rate(s) as set
forth on the effective Sheet No. 101. In the event a rate less than the
applicable maximum rate(s) and not less than the applicable minimum rate(s) is
agreed upon, such rate shall be applicable for the period agreed upon by
Shipper and Pipeline.
   
      4.2   The Daily Charges set forth in Section 4.1 above shall not be
applicable for a Day if (i) the Customer requests the delivery of parked
quantities and Pipeline is unable to return the gas to Customer on that Day or
(ii) the Customer requests to return loaned quantities to Pipeline and
Pipeline is unable to accept such gas on that Day. The Daily Charges will be
reinstated when Transporter gives written notification to Shipper that
pipeline system conditions allow the receipt or delivery of these quantities.
   
      4.3   Customer shall pay Pipeline a Monthly charge for PAL services
consisting of the sum of the Daily charges. Daily charges shall be the product
of the quantities of gas in Customers PAL account (inclusive of quantities
subject to Park Service and quantities subject to Loan Service) for each
separate transaction and the maximum or mutually agreed upon rate for each Day
during the applicable Month that service is provided by Transporter. For each
transaction hereunder, charges shall commence on the first Day of the agreed
upon transaction and continue until Shippers account balance for that
transaction reaches zero or until the last Day of the agreed upon term as set
forth in the executed PAL Service Agreement, whichever comes first.
   
5.    NOMINATIONS AND SCHEDULING
      5.1   Availability. Park and Loan Service is subject to available Park
capacity and available Loan capacity. For each Day Transporter shall project
the amount of available Park capacity and available Loan capacity that
Transporters system is capable of providing and post such information on its
Interactive Internet Website. As Transporter receives nominations for all
services that affect the amount of available Park capacity and available Loan
capacity, Transporter will update the information on its Interactive Internet
Website accordingly.
   
      5.2   Nomination. A Shipper seeking Park and Loan Service on any Day
under this Rate Schedule shall submit a nomination to Pipeline in accordance
with Section 7 of Pipelines General Terms and Conditions. Customer shall
nominate the agreed upon Park or Loan quantities at the Parking Point or Loan
Point. Such nominated quantities shall be subject to confirmation by
Transporter. The confirmed quantity shall be deemed the scheduled quantity.
Transporter shall schedule the quantities nominated hereunder in accordance
with Section 7 of Transporters General Terms and Conditions.

   
      5.3   Transporter intends to provide PAL service at given Parking Points
and Loan Points to Shippers on a first-come, first-served basis. It is
possible that Transporter will receive nominations for more Park or Loan
capacity that it can make available, and can therefore not satisfy the
nominations of all Shippers. When submitting a Park or Loan bid, a Shipper may
determine if it wishes to receive a prorated portion of the capacity for which
it submitted a nomination, or alternatively, if it wishes to cancel the
nomination if the entire order cannot be filled. As a default choice, if
Shipper does not make such an election and Transporter cannot grant Shipper
all of the Park or Loan capacity it requested, Shipper shall be allocated a
prorated portion of its Park or Loan capacity request.
   
      5.4   The Park or Loan quantity of Gas in Shippers account for all Loan
Points on any Day shall not exceed the MLQ set forth in Shippers PAL Service
Agreement. Transporter may reject any nomination if Shipper nominates
quantities when the balance(s) in Shippers account exceeds the MLQ or when
giving effect to the nomination will result in a balance(s) in Shippers
account that exceeds the MLQ.
   
      5.5   A shipper that wishes to close its Parked or Loaned position must
make a nomination to close the position. Nominations to close Park or Loan
positions must be in accordance with Section 7 of Pipelines General Terms and
Conditions. Nominations to close existing Park or Loan positions shall take
precedent over nominations for new Park or Loan quantities, as applicable, and
the available quantities shall be adjusted accordingly prior to allocating
such capacity to new requests for PAL service.

6.    INTERRUPTION AND CURTAILMENT OF SERVICE
   
      6.1   In the event that Transporter determines, in its sole discretion,
that some or all Park and Loan services must be interrupted or curtailed in
order to satisfy Transporters obligations to other Shippers consistent with
Section 10 of the General Terms and Conditions, or that such interruption or
curtailment is otherwise necessary or appropriate to avoid adverse impact on
the operation of Transporters system, or if a Shipper has a Parked Quantity
or a Loan Quantity of less than 50 Dth, Transporter will notify, by telephone,
facsimile, e-mail or other means, any affected Shippers receiving Park or Loan
service that they must eliminate or reduce their existing Parked Quantity
and/or Loan Quantity, as applicable, over the period specified in
Transporters notice. Such notices shall be issued to Shippers in the order
based upon the Present Value for each Shippers outstanding Parked Quantities
or Loan Quantities at all Parking and Loan Points beginning with the lowest
Present Value first. Such notices must be given by Transporter with at least
one Day notice.
   
      6.2   If Shipper fails to comply with a notice given in accordance with
Section 6.1 above, Transporter shall cash out the Parked Quantity that Shipper
was advised, but failed, to reduce or eliminate at the replacement cost of gas
less ten percent (10%), in order to recover Transporters administrative
costs. The cash-out price of gas shall be computed as follows: (i) all volumes
subject to cash-out on a particular Day will be aggregated and offered for
sale in one lump sum; (ii) all revenues received from the sale of such volumes
will be aggregated for such Day; and, (iii) the aggregate revenues, less 10%,
for each Day will be applied pro rata to the aggregate cash-out volumes for
each Day. All quantities of Gas offered for sale pursuant to this section will
be posted on Transporters Interactive Internet Website in a notice stating
the quantity of Gas offered for sale and the deadline for making bids. Such
volumes will be sold on a best bid basis, beginning with the highest bid.
   
      6.3   If Shipper fails to repay its Loan Quantity to Transporter, or
fails to comply with a notice given in by Transporter in accordance with
Section 6.1 above, Transporter shall cash out Shippers Loan Quantity at 115%
of the price of gas as reported by Gas Daily for Tennessee Gas Pipeline, Zone
6 (Delivered) on the Day following the expiration of the period specified in
Transporters curtailment notice provided pursuant to Section 6.1 above,
multiplied by the Loan Quantity remaining on the Day the Loan Quantity was
originally due.

7.    CONTRACT TERMINATION
   
      The Park and Loan Service Contract may be terminated by either party on
30 days notice, or terminated by the Transporter on shorter notice if in its
sole discretion, the Shipper has not complied with the terms of the tariff,
including the creditworthiness requirements as set forth in Section 3 of
Pipelines General Terms and Conditions. Unless a shorter period of time is
imposed in a notice issued in accordance with this Section 7, Shipper shall
eliminate any outstanding Parked Quantity or Loan Quantity within five (5)
days of termination of its Park and Loan Service Contract. If Shipper fails to
eliminate such balance, Transporter shall cash out any quantity remaining
after five (5) days at the replacement cost of gas plus fifteen percent (15%)
for Loan Quantity or the sale price of the gas less ten percent (10%) for
Parked Quantity. For such purposes, the replacement cost and sale price of gas
shall be computed as described in Section 6 above.
   
8.    GENERAL TERMS AND CONDITIONS
   
      Shipper shall provide Transporter with such information as is needed to
meet Transporters obligations pursuant to 18 C.F.R. Part 284. Unless stated
otherwise, all of the General Terms and Conditions of Transporters FERC
Tariff, and any revisions thereof that may be proposed and made effective from
time to time hereafter, shall apply to and are made a part of this Rate
Schedule.

                             RATE SCHEDULE FT-FLEX
                      LIMITED FIRM TRANSPORTATION SERVICE
   
1.   AVAILABILITY
   
This Rate Schedule is available for service by Transporter to any Shipper,
where:
   
     a)  Shipper has made a valid request, as defined in Section 3 of the
General Terms and Conditions, or Shipper has obtained released capacity under
Section 11 of the General Terms and Conditions;
   
     b)  Shipper has met Transporters financial creditworthiness criteria as
set forth in Section 3 of the General Terms and Conditions;
   
     c)  Shipper and Transporter have entered into a Gas Transportation Contract
for FT-FLEX Limited Firm Transportation Service under this Rate Schedule;
   
     d)  All necessary contracts have been or will be entered into by or on
behalf of Shipper for the acquisition of Gas, for the delivery of Gas to
Transporter at one or more Receipt Points on the System, and/or the further
transportation of Gas from one or more Delivery Points on the System, as
applicable; and
   
     e)  All necessary regulatory and governmental approvals to purchase and
sell, transport and, if appropriate, export and/or import the Gas to be
transported by Transporter have been obtained.
   
2.   APPLICABILITY AND CHARACTER OF SERVICE
   
Service rendered under this Rate Schedule shall consist of:
   
a)   the receipt by Transporter of Shippers Gas at the Receipt Point(s)
     specified in the executed Gas Transportation Contract;
   
b)   the transportation of Gas up to Shippers Maximum Contract Demand
     either by forwardhaul, or by displacement, exchange or backhaul; and
   
c)   the delivery of Gas by Transporter to or for the account of Shipper
     at Delivery Point(s) specified in the executed Gas Transportation
     Contract; and

                      RATE SCHEDULE FT-FLEX   (Continued)
   
     d) the transportation service rendered under this Rate Schedule shall be
firm between the Receipt Point(s) and Delivery Point(s) set forth in the
executed agreement, except that Transporter has the right to not schedule
service, in whole or in part, during any Daily Nomination Cycle except as
prohibited by Section 7.2(iv) of the General Terms and Conditions of
Transporter s FERC Gas Tariff. The maximum number of Days in any Month on
which Transporter may decline to schedule is 10 Days.
   
Following Transporters non-scheduling of a nomination by Shipper on one of
the Days on which Transporter does not schedule Shipper s nomination under
this Rate Schedule, Shipper is entitled to resubmit the nomination with
other receipt and/or delivery points or as a request for service pursuant
to any other Rate Schedule in one of Transporter s other Nomination Cycles,
provided that Shipper has executed a service contract under such Rate
Schedule.
   
     e) Shipper may nominate as Authorized Overrun and Transporter may schedule,
pursuant to Section 7.4 of the General Terms and Conditions contained herein, an
amount above its MDQ during any Day.
   
3.   RATES AND CHARGES
   
     a)    Applicable Rates.  The applicable maximum and minimum reservation
rates, maximum and minimum usage rates and applicable unit charges for service
under this Rate Schedule are set forth in the currently effective Sheet No. 100
of this FERC Gas Tariff and are hereby incorporated herein.
   
     b)  Monthly Bill.  The Monthly bill shall consist of:
          i)  Reservation Charge.  For each Month, the reservation rate payable
by Shipper shall, subject to any discounted or negotiated rate as provided
herein, be equal to the applicable maximum reservation rate, multiplied by the
Shipper s Maximum Contract Demand as specified in Shipper s Gas Transportation
Contract.
          ii)  Usage Charge.  For each Month, the usage rate payable by Shipper
shall, subject to any discounted or negotiated rate as provided herein, be equal
to the applicable maximum usage rate multiplied by the sum of the Receipt Point
Scheduled Quantity or Quantities during such Month.
   
         iii)  ACA Charge.  For each Month, the ACA rate payable by Shipper
shall be equal to an amount obtained by multiplying the sum of the Receipt
Point(s) Scheduled Quantity or Quantities during such Month, by the ACA unit
rate.
   
         iv)  Scheduling, Imbalance and Overrun Penalties.  Transporter shall
charge Shipper any applicable scheduling, imbalance and overrun penalties in
accordance with Section 8 of the General Terms and Conditions.

                      RATE SCHEDULE FT-FLEX   (Continued)
   
        v) Authorized overrun charge.  For each Month, the maximum authorized
overrun charge payable by Shipper shall be equal to the applicable maximum rate
for service under Rate Schedule IT, multiplied by the sum of the Authorized
Overrun Scheduled Quantity or Quantities during such Month for such Shipper.
   
        vi)  Other Charges.  These include any other charges as may be
applicable from time to time pursuant to the General Terms and Conditions or as
otherwise authorized by the FERC.
   
        vii)  Capacity Release Credits.  To the extent Shipper releases capacity
in any Month pursuant to Section 11 of the General Terms and Conditions, Shipper
shall receive a credit representing the Monthly reservation charge

                      RATE SCHEDULE FT-FLEX   (Continued)
   
simultaneously billed to the Replacement Shipper, minus all applicable fees
described in Section 11.15 of the General Terms and Conditions.  Nothing in
this Section 4(b)(vi) relieves Shipper of its obligation to pay to Transporter
the full amount of the reservation charge for any Month in which the
Replacement Shipper fails to pay all or any portion of the Replacement
Reservation Charge.
   
     (c)  Discounted Rates.  Transporter shall have the right to discount the
maximum reservation rate and maximum usage rate for service under this Rate
Schedule and to charge a lower rate for some or all of the services performed
under this Rate Schedule; provided, however, that in no event shall rates
charged under this Rate Schedule be less than the minimum reservation rate and
minimum usage rate for firm service.  Transporter is not obligated to offer
service at discounted rates; however, rates will not be discounted on an
unduly discriminatory basis and discounts will be made available to all
similarly situated customers.
   
     A Shipper with a previously negotiated rate discount limited to service
at specific receipt and delivery points may request that such discounted rate 
apply to alternate points if Shipper chooses to release capacity or use
flexible receipt and delivery points rights.  There shall be a rebuttable
presumption that Shipper will retain its discounted rate when utilizing such
points if Transporter currently grants discounts to another Shipper receiving
transportation service utilizing such points.  However, Transporter can rebut
this presumption by demonstrating that Shipper is not similarly situated to
the Shipper receiving the discount at those points.  If the discount is
retained, Shipper shall pay the higher of its contractual discounted rate or
the highest discount rate being applicable to those points.
   
     On any Business Day, the request to transfer the discount must be
submitted at least two hours prior to the nomination that would use the
discount at alternate points.  Transporter shall respond to the request within
two hours of receipt; however, any request received after 4:00 p.m. Central
Clock Time on any Business Day shall be responded to by 9:00 a.m. Central
Clock Time on the following Business Day.
   
     (d)  Measurement Variance.  Reservation and usage charges shall be based
on Shipper s applicable monthly Maximum Contract Demand and Receipt Point
Scheduled Quantities, respectively, irrespective of whether the applicable
monthly Measurement Variance Factor is positive or negative.  Shipper shall
receive in-kind adjustments to Scheduled Quantities in order to account for
positive and negative Measurement Variance Quantities.  Transporter shall
publish the applicable monthly Measurement Variance Factor on its Interactive
Internet Website. Such published Measurement Variance Factor will be bound by
maximum and minimum percentages set forth on currently effective Sheet No. 100
of this Tariff.
   
     (e)  Negotiated Rates.  Notwithstanding any provision of Transporters
Tariff to the contrary, Transporter and Shipper may mutually agree in writing
to rates, rate components, charges, or credits for service under this Rate
Schedule that differ from those rates, rate components, charges, or credits
that are otherwise prescribed, required, established or imposed by this Rate
Schedule or by any other applicable provision of Transporters effective FERC
Gas Tariff.  If

                      RATE SCHEDULE FT-FLEX   (Continued)
   
Transporter agrees to such negotiated rate(s), then such negotiated rate(s)
shall be set forth in the Gas Transportation Contract and shall be effective
only for the period agreed upon by Transporter.  During such period, the
negotiated rate(s) shall govern and apply to the Shippers service and the
otherwise applicable rate, rate component, charge, or credit (i.e., any
reduction in rates which might otherwise apply) which the parties have agreed
to replace with the negotiated rate(s), shall not apply to, or be available
to, the Shipper.  At the end of such period, the otherwise applicable maximum
rates or charges shall govern the service provided to Shipper, unless
otherwise agreed by Transporter and Shipper. Only those rates, rate
components, charges, or credits identified by Transporter and Shipper in
writing as being superseded by a negotiated rate(s)shall be ineffective during
the period that the negotiated rate is effective; all other rates, rate
components, charges, or credits (i.e., any reduction in rates which might
otherwise apply) prescribed, required, established for service under this Rate
Schedule, shall remain in effect.  Transporter shall make any filings with the
FERC necessary to effectuate a negotiated rate(s).
   
4.   GENERAL TERMS AND CONDITIONS
   
      All of the General Terms and Conditions and any revisions thereof that
may be made effective from time to time hereafter, shall apply to and are made
a part of this Rate Schedule.

                               RATE SCHEDULE HRS
                            Hourly Reserve Service
   
1. AVAILABILITY
   
This Rate Schedule is available for service by Transporter to any Shipper,
where:
   
a) Transporter has determined that it has sufficient available and uncommitted
capacity to perform service requested by shipper; and
   
b) Shipper has made a valid request, as defined in Section 3 of the General
Terms and Conditions, or Shipper has obtained released capacity under Section
11 of the General Terms and Conditions; and
   
c) Shipper has met Transporters financial creditworthiness criteria as set
forth in Section 3 of the General Terms and Conditions; and
   
d) Shipper and Transporter have entered into a Gas Transportation Contract for
HRS Service under this Rate Schedule; and
   
e) All necessary contracts have been or will be entered into by or on behalf
of Shipper for the acquisition of Gas, for the  delivery of Gas to Transporter
at one or more Receipt Points on the System, and/or the further transportation
of Gas from one or more Delivery Points on the System, as applicable; and
   
f) All necessary regulatory and governmental approvals to purchase and sell,
transport and, if appropriate, export and/or import the Gas to be transported
by Transporter have been obtained; and
   
g) Transporter is not already providing service under Rate Schedule HRS at the
desired Primary Delivery Point.
   
2. APPLICABILITY AND CHARACTER OF SERVICE
   
a) This Rate Schedule shall apply to all Transportation Service rendered by
Transporter for Shipper pursuant to the executed Gas Transportation Contract
under this Rate Schedule.
   
b) Transportation Service under this Rate Schedule shall consist of:  (1)  the
receipt of Gas on behalf of Shipper, (2) the Transportation of Gas, and  (3)
the Tender of Gas for delivery by Transporter to Shipper, or for Shippers
account up to Shippers MDQ, at hourly rates up the Shippers MHQ.

                           RATE SCHEDULE HRS (cont.)
                             Hourly Reserve Service
   
c) Transportation Service rendered under this Rate Schedule shall be firm, up to
the Primary Delivery Point MDQs and MHQs specified in the executed Agreement.
Transporter shall enter into no more than one agreement for Rate Schedule HRS
Service at any Primary Delivery Point on the system.  Transportation service
under this rate schedule at secondary points shall be firm, up to the shippers
MDQ at an MHQ equal to the Shippers MDQ divided by 24, provided, however, that
Transporter shall honor Shippers MHQ at a Secondary Delivery Point if doing so
will not interfere with the provision of any other service request on the
system.
   
d) Shipper shall be deemed to be within its contract entitlement to the extent
the actual flow rate during any hour is less than the combined scheduled hourly
flow rates at the primary point pursuant to Section 7.10 of the General Terms
and Conditions contained in Transporters FERC Gas Tariff and within its MDQ
during any Gas Day.
   
e) Shipper may nominate as Authorized Overrun and Transporter may schedule,
pursuant to Section 7.4 of the General Terms and Conditions contained herein, an
amount above its MDQ during any Day and/or above its MHQ during any hour.
Shipper may nominate an MHQ overrun for a limited number of hours during any day
but no less than one hour of service overrun may be nominated.
   
3. RATES AND CHARGES
3.1 Reservation Rates shall consist of:
   
a) A Capacity Reservation Rate, as stated on Sheet No. 102, paid each month. The
Capacity Reservation Charge shall be the product of Shippers MDQ (in
Dekatherms) multiplied by the rate shown on Sheet No. 102 (or such
discounted/negotiated rate as may be established under Section 3.3 of Rate
Schedule HRS), and
   
b) A Deliverability Reservation Rate, as stated on Sheet No. 102, paid each
Month.  The Deliverability Reservation Charge shall be the product of Shippers
MDQ (in Dekatherms), times the rate shown on Sheet No. 102 applicable to the
Maximum Hourly Flow Rate selected by Shipper and agreed to by Transporter which
appears on Schedule 2 of Shippers service agreement (or such discounted/
negotiated rate as may be established under Section 3.3 of Rate Schedule HRS).
   
3.2 Usage Rates
   
a) On a monthly basis, the Usage-1 Rate, as stated on Sheet No. 102, will be
multiplied by that portion of the total quantity of Gas deliveries on any Day
during the month, pursuant to the Shippers Agreement which is not in excess of
the lower of (i) 105% of the scheduled quantities of Gas under the Agreement for
such Day or (ii) the MDQ in effect under the Agreement for such Day.

                              RATE SCHEDULE HRS (cont.)
                               Hourly Reserve Service
   
b) On a monthly basis, the Usage-2 Rate, as stated on Sheet No. 102, will be
multiplied by that portion of the total quantity of Gas scheduled as Authorized
Overrun on any Day during the month, which Shipper nominates and Transporter
schedules pursuant to Section 7.4 of the General Terms and Conditions contained
herein.

RATE SCHEDULE HRS (cont.)

Hourly Reserve Service


 

d) ACA Charge. For each month, the ACA rate payable by the Shipper shall be

equal to an amount obtained by multiplying the sum of the Receipt Point(s)

Scheduled Quantity or Quantities during such Month, by the ACA unit rate.


 

e) Scheduling, Imbalance and Overrun Penalties. Transporter shall charge

Shipper any applicable scheduling, imbalance or overrun penalties in

accordance with Section 8 of the General Terms and Conditions.


 

f) Other Charges. These include any other charges as may be applicable from

time to time pursuant to the General Terms and Conditions or as otherwise

authorized by the FERC.


 

g) Capacity Release Credits. To the extent Shipper releases capacity in any

Month pursuant to Section 11 of the General Terms and Conditions, Shipper

shall receive a credit representing the Monthly reservation charge

simultaneously billed to the Replacement Shipper, minus all applicable fees

described in Section 11.15 of the General Terms and Conditions. Nothing in

this Section 3.2(g) relieves Shipper of its obligation to pay to Transporter

the full amount of the reservation charge for any Month in which the

Replacement Shipper fails to pay all or any portion of the Replacement

Reservation Charge.


 

3.3 Discounted Rates


 

Transporter shall have the right to discount the maximum reservation rate and

maximum usage rate for the service under this Rate Schedule and to charge a

lower rate for some or all of the services performed under this Rate Schedule;

provided, however, that in no event shall rates charged under this Rate

Schedule be less than the minimum reservation rate and minimum usage rate for

firm service. Transporter is not obligated to offer service at discounted

rates; however, rates will not be discounted in an unduly discriminatory

manner and comparable discounts will be made available to all similarly

situated customers.


 

A Shipper with a previously negotiated rate discount limited to service at

specific receipt and delivery points may request that such discounted rate

apply to alternate points if Shipper chooses to release capacity or use

flexible receipt and delivery points rights. There shall be a rebuttable

presumption that Shipper will retain its discounted rate when utilizing such

points if Transporter currently grants discounts to another Shipper receiving

transportation service utilizing such points. However, Transporter can rebut

this presumption by demonstrating that Shipper is not similarly situated to

the Shipper receiving the discount at those points. If the discount is

withheld, Shipper shall pay the higher of its contractual discounted rate or

the highest discount rate being applicable to those points.

                           RATE SCHEDULE HRS (cont.)
                            Hourly Reserve Service
   
On any Business Day, the request to transfer the discount must be submitted at
least two hours prior to the nomination that would use the discount at
alternate points.  Transporter shall respond to the request within two hours
of receipt; however, any request received after 4:00 p.m. Central Clock Time
on any Business Day shall be responded by 9:00 a.m. Central Clock Time on the
following Business Day.
   
   
3.4 Measurement Variance
   
Subject to the terms of Sections 3.1 and 3.2 of this Article III, reservation
and usage charges shall be based on Shippers applicable monthly Maximum
Contract Demand and Receipt Point Scheduled Quantities, respectively,
irrespective of whether the applicable monthly Measurement Variance Factor is
positive or negative.  Shipper shall receive in-kind adjustments to Scheduled
Quantities in order to account for positive and negative Measurement Variance
Quantities.  Transporter shall publish the applicable monthly Measurement
Variance Factor on its electronic bulletin board.  Such published Measurement
Variance Factor will be bound by maximum and minimum percentages set forth on
currently effective Sheet No. 102 of this Tariff.
   
3.5 Negotiated Rates
   
Notwithstanding any provision of Transporters Tariff to the contrary,
Transporter and Shipper may mutually agree in writing to rates, rate
components, charges, or credits for service under this Rate Schedule that
differ from those rates, rate components, charges, or credits that are
otherwise prescribed, required, established or imposed by this Rate Schedule
or by any other applicable provision of Transporters effective FERC Gas
Tariff.  If Transporter agrees to such negotiated rate(s), then such
negotiated rate(s) shall be set forth in the Gas Transportation Contract and
shall be effective only for the period agreed upon by Transporter.  During
such period, the negotiated rate(s) shall govern and apply to the Shippers
service and the otherwise applicable rate, rate component, charge, or credit
(i.e., any reduction in rates which might otherwise apply) which the parties
have agreed to replace with the negotiated rate(s), shall not apply to, or be
available to, the Shipper.  At the end of such period, the otherwise
applicable maximum rates or charges shall govern the service provided to
Shipper, unless otherwise agreed by Transporter and Shipper.

                           RATE SCHEDULE HRS (cont.)
                            Hourly Reserve Service
   
Only those rates, rate components, charges, or credits identified by
Transporter and Shipper in writing as being superseded by a negotiated rate(s)
shall be ineffective during the period that the negotiated rate is effective;
all other rates, rate components, charges, or credits (i.e., any reduction in
rates which might otherwise apply) prescribed, required, established for
service under this Rate Schedule, shall remain in effect.  Transporter shall
make any filings with the FERC necessary to effectuate a negotiated rate(s).
   
4.RECEIPT AND DELIVERY POINTS
   
4.1  The Receipt Point(s) at which Transporter shall receive Gas for
Transportation hereunder shall be those listed in Schedule 1 appended to each
Gas Transportation Contract and such Schedule shall designate all of Shippers
potential Receipt Point(s) and shall further designate Shippers Primary
Receipt Point(s).
   
4.2 Shipper shall have the right to redesignate any points listed on Schedule
1 appended to each Gas Transportation Contract as Primary Receipt Point(s),
subject to available capacity and provisions of the General Terms and
Conditions.  Furthermore, Shipper shall have the right to utilize all other
Receipt Point(s) as Secondary Receipt Point(s), subject to available capacity
and the provisions of the General Terms and Conditions.
   
4.3  Shipper shall have a single Primary Delivery Point listed in Schedule 2
to its Gas Transportation Contract.  Shipper shall have the right to utilize
all other Delivery Points as Secondary Delivery Points, except that a request
for service at a Secondary Delivery Point shall be scheduled as a request for
service at an uniform hour flow rate without regard to Shippers MHQ;
provided, however, that Transporter shall honor Shippers MHQ at a Secondary
Delivery Point if doing so will not interfere with the provision of any other
service request on the system.
   
4.4 Shipper shall have the right to redesignate any point listed on Schedule 2
appended to each Gas Transportation Contract as Primary Delivery Point,
subject to available capacity and the provisions of the General Terms and
Conditions; provided, however, if Shipper is paying a Negotiated Rate for
service under the Agreement and requests to change its Primary Delivery Point
under the Agreement, then unless otherwise agreed to in writing by Shipper and
Transporter the rate applicable for service to such new Primary Delivery Point
shall be the maximum Recourse Rate.  Furthermore, Shipper shall have the right
to utilize all other Delivery Points as Secondary Delivery Points, except that
a request for service at a Secondary Delivery Point shall be scheduled as a
request for service at an uniform hour flow rate without regard to Shippers
MHQ; provided, however, that Transporter shall honor Shippers MHQ at a
Secondary Delivery Point if doing so will not interfere with the provision of
any other service request on the system.

                              RATE SCHEDULE HRS (cont.)
                               Hourly Reserve Service
   
4.5 Shipper shall elect the MHQ for Shippers Gas at the Primary Delivery Point
at the time its request for Transportation Service is submitted to Transporter
pursuant to Section 3 of the General Terms and Conditions.  Such election may
not include more than one MHQ at a Primary Delivery Point. Such MHQ shall
reflect deliveries at Maximum Hourly Flow Rates of 1/24th, 1/20th, 1/16th,
1/14th, or 1/12th of MDQ.  Such election by Shipper will be set forth in the
Agreement.  Shipper shall have the right to utilize all other Delivery Points
as Secondary Delivery Points, except that a request for service at a Secondary
Delivery Point shall be scheduled as a request for service at an uniform hour
flow rate without regard to Shippers MHQ; provided, however, that Transporter
shall honor Shippers MHQ at a Secondary Delivery Point if doing so will not
interfere with the provision of any other service request on the system.
   
   
5. COMMISSION AND OTHER REGULATORY FEES
   
Shipper will reimburse Transporter for any separately stated fees required by
the Commission or any other federal or state regulatory body.
   
6.  GENERAL TERMS AND CONDITIONS
   
All of the General Terms and Conditions and any revisions thereof that may be
made effective from time to time hereafter shall apply to and are made a part
of this Rate Schedule.

   
   
   
                         ORIGINAL SHEET NOS. 227 - 299
                        HAVE NOT BEEN ISSUED, BUT HAVE
                         BEEN RESERVED FOR FUTURE USE

                         GENERAL TERMS AND CONDITIONS
   
                               TABLE OF CONTENTS
   
Section No.    Section Title                                      Sheet No.
   
1.             Introductory Statement                                301
2.             Definitions                                           301
3.             Requests for Service/Credit Evaluation                310
4.             General Service Conditions                            317
5.             Quality of Gas                                        318
6.             Measurement of Gas and Measurement Equipment          320
7.             Nominations and Scheduling                            323
8.             Balancing and Penalties                               332
9.             Receipt Points and Delivery Points                    340
10.            Service Interruptions and Priorities                  341
11.            Capacity Release                                      343
12.            Pregranted Abandonment and Right of First Refusal     363
13.            Interactive Internet Website                          365
14.            Lateral Facilities Policy                             368
15.            Billings and Payments                                 369
16.            Cost Reimbursements                                   372
17.            ACA Charge                                            374
18.            Warranty of Title and Possession of Gas               375
19.            Indemnity                                             377
20.            Liability and Remedies                                378
21.            Supervening Laws and Changes by the Transporter       381
22.            Marketing Affiliate Rule                              382
23.            Miscellaneous                                         383
24.            Compliance with WGQ Standards                         385

                         GENERAL TERMS AND CONDITIONS
   
  1.   INTRODUCTORY STATEMENT
   
       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.
   
  2.   DEFINITIONS
   
       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.

                   GENERAL TERMS AND CONDITIONS (Continued)
   
        2.6 Delivery Point(s): shall mean a point or points at which
Transporter is authorized to make Gas available to or for the account of
Shipper.  With respect to any Shipper, a Delivery Point shall be either
Primary or Secondary. The System Delivery Points are listed on Transporter s
Interactive Internet Website.
   
        2.7 Dth: shall mean the quantity of heat energy which is 1,000,000
British Thermal Units.
   
        2.8 Eastern Time: shall mean Eastern Daylight Savings Time when in
effect and Eastern Standard Time at all other times.
   
        2.9 EDI: shall mean the Electronic Data Interchange as defined by
then-effective standards established by the Gas Industry Standards Board and
approved by the FERC.
   
        2.10 Effective Service Period: shall mean the portion of a Year that a
FT Shippers Maximum Contract Demand is available for nomination, which shall
be the entire year unless a lesser period is set forth on Schedules 1 and 2 of
the FT Transportation Contract.
   
        2.11 FERC: shall mean the Federal Energy Regulatory Commission or any
successor agency having jurisdiction over this Tariff.
   
        2.12 Force Majeure: shall mean acts of God, strikes, lockouts,
sabotage, acts of the public enemy, wars, blockades, insurrections, riots,
epidemics, landslides, mudslides, lightning, snowstorms, ice storms,
earthquakes, fires, storms, floods, washouts, arrests and restraints of rulers
and peoples, civil disturbances, explosions, breakage of or accident to
machinery or lines of pipe, line freeze-ups, the binding order of any court or
governmental authority which has been resisted in good faith by all reasonable
legal means, and any other cause whatsoever, whether of the kind herein
enumerated, or otherwise which is not within the control of the party claiming
excuse and which by the exercise of due diligence such party is unable to
prevent or overcome.  A failure to settle or prevent any strike or other
controversy with employees or with anyone purporting or seeking to represent
employees shall not be considered to be a matter within the control of the
party claiming excuse.  Under no circumstances will lack of funds or finances,
or failure of or change in gas supply, markets or storage facilities or fields
be construed to constitute Force Majeure.
   
        2.13 Gas: shall mean natural gas of the quality specified in Section 5
herein.
   
        2.14 Gas Transportation Contract: shall mean a contract for firm or
interruptible service under this Tariff made by and between Transporter and
Shipper, or by and between Transporter and a Replacement Shipper.
Specifically, such term shall include the Gas Transportation Contracts for
Firm Transportation Service, Interruptible Transportation Service, FT-FLEX
Limited Firm Transportation Service, and Gas Transportation Contracts with
replacement Shippers, the forms of which are included in this Tariff.

                   GENERAL TERMS AND CONDITIONS (Continued)
   
        2.15 General Terms and Conditions: shall mean the General Terms and
Conditions of this Tariff, as they may be amended from time to time.
   
        2.16 Hour: Shall mean a period of sixty consecutive minutes beginning
at the top of any hour, e.g., 9:00.
   
        2.17 Intra-day Nomination: shall mean a Nomination submitted after the
deadline which effective time is no earlier than the beginning of the gas Day
and runs through the end of that gas Day.  Intra-day Nominations may be used
to nominate new supply or market. Shippers receiving service under any of
Transporters rate schedules may make Intra-day Nomination which can be used to
request increases or decreases in total flow, changes to Receipt Points, or
changes to Delivery Points of scheduled gas for less than one Day. Intra-day
Nominations shall be stated in daily quantities, indicating the revised total
flow for the 24 hour period commencing at 9:00 am Central Clock Time, and
shall include an effective date and time. Such Nominations do not replace the
remainder of a standing Nomination which may extend past that gas Day.
   
        2.18 Loan Point: shall mean the location where Transporter delivers 
Gas to Shipper for Loan Service.
   
        2.19 Loaned Quantity: shall mean the quantity of Gas delivered by
Transporter to Shipper at the Loan Point for loan service.
   
        2.20 Maximum Contract Demand: shall mean the sum of the Receipt Point
Maximum Daily Quantity or Quantities, as set forth in an executed Gas
Transportation Contract under Rate Schedule FT.
   
        2.21 Maximum Daily Quantity or MDQ: shall mean the maximum number of
DTH (adjusted by the applicable Measurement Variance Quantity), specified in a
Gas Transportation Contract in accordance with one or more Rate Schedules
herein, that Transporter is obligated to transport Daily for Shipper to a
specified Delivery Point or from a specified Receipt Point. Nothing in this
definition is intended to conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28
and 1.3.31.
   
        2.22 Maximum Hourly Flow Rate:  shall mean the percentage of MDQ at a
Primary Delivery Point that Transporter shall be obligated to deliver on
behalf of Shipper on a firm basis during any hour and shall be expressed as
the quotient of MHQ divided by MDQ.
   
        2.23 Maximum Hourly Quantity or MHQ:  shall mean the greatest number
of Dekatherms that Transporter is obligated to deliver at a Primary Delivery
Point to or on behalf of Shipper, on a firm basis, for any Hour.
   
        2.24 Mcf: shall mean 1,000 Cubic Feet of Gas.
   
        2.25 Measurement Variance Quantity: shall mean the product, rounded to
the nearest DTH, of the applicable Measurement Variance Factor and the Receipt
Point Scheduled Quantity in the case of a positive Measurement Variance
Factor, or the Delivery Point Scheduled Quantity in the case of a negative
Measurement Variance Factor.  Nothing in this definition is intended to
conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28 and 1.3.31.
   
        2.26 Measurement Variance Factor: shall mean the applicable
percentage, determined on a Monthly basis pursuant to this Section 2.20, to
account for and recover lost and unaccounted-for gas on the System.  The
Monthly percentages shall be within the minimum and maximum percentages set
forth on the currently effective Sheet No. 100 of this Tariff for the
applicable Rate Schedule.  At least ten (10) days prior to the beginning of
each Month, Transporter will publish the Measurement Variance Factor via its
Interactive Internet Website.  Nothing in this definition is intended to
conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28 and 1.3.31.  The Monthly
Measurement Variance Factor shall be calculated in the following manner:

                   GENERAL TERMS AND CONDITIONS (Continued)
   
    [Receipts-Deliveries +/- Line Pack Change +/- Accumulated Imbalance] /
            [Forecasted System Deliveries For The Applicable Month]
   
Where:
   
Receipts =     Actual measured quantities received by Transporter at Receipt
               Point(s) for transportation during the Month ending one Month
               prior to the applicable Month ("Measurement Month").
   
Deliveries =   Actual measured quantities made available by Transporter at
               Delivery Point(s) during the Measurement Month.
   
Line Pack      The change in line pack quantities in the System that occurred
Change =       during the Measurement Month.
   
Accumulated    Any gas (measurement variance) which has been over or under
Imbalance =    collected during the Month(s) prior to the Measurement Month.
   
        2.27 Month or Monthly: shall mean the period beginning at 8:00 a.m.
Eastern Time on the first Day of the calendar Month and ending at 8:00 a.m.
Eastern Time on the first Day of the next succeeding calendar Month.
   
        2.28 Nomination: shall mean a transmittal by Shipper to Transporter
either by facsimile or electronically of request for receipt and/or delivery
of gas for the account of the shipper for each gas Day that service is
desired.
   
        2.29 Operational Balancing Agreement: shall mean an executed agreement
between Transporter and another willing, mutually agreeable, creditworthy
third party that will aggregate the receipt and delivery obligations and
entitlements of one or more Shipper(s) with respect to gas transportation
Nominations, scheduling, dispatching, balancing and related gas receipt or
delivery functions.
   
        2.30 Operator: shall mean an entity other than Transporter, which has
been designated by Transporter to operate the System.
   
        2.31 Parking Point: shall mean the location where the Shipper delivers
Gas to Transporter for parking service.
   
        2.32 Parked Quantity: shall mean the quantity of Gas delivered by
Shipper at the Parking Point for parking service.
   
        2.33 Present Value:  shall mean the value produced from the
application of the following formula:

                   GENERAL TERMS AND CONDITIONS (Continued)
   
               PV = [ A (1-(1+i)-n) ] / i
   
Where:         PV = present value of the rate
               A = fraction of unit rate, such that:
   
               A = proposed rate / maximum rate
   
               i = Monthly equivalent of the prime rate, as published in the
Wall Street Journal, plus five percent (5%)
   
               n = term of the agreement, in Months
   
        2.34 Primary Delivery Point(s): shall mean, with respect to any
Shipper, the Delivery Point(s) set forth on Schedule 2 appended to its Gas
Transportation Contract.
   
        2.35 Primary Receipt Point(s): shall mean, with respect to any
Shipper, the Receipt Point(s) set forth on Schedule 1 appended to its Gas
Transportation Contract.
   
        2.36 Rate Schedule: shall mean Rate Schedules FT, and IT under
Transporters FERC Gas Tariff, and any additional or superseding rate
schedule(s).
   
        2.37 Receipt Point(s): shall mean a point or points at which
Transporter is authorized to receive Gas from or for the account of Shipper.
With respect to any Shipper, a Receipt Point shall be either Primary or
Secondary.  The System Receipt Points are listed on Transporters Interactive
Internet Website.
   
        2.38 Recourse Rate(s): shall mean the maximum rate, rate component,
charge or credit that is available to all Shippers under this Tariff, as
displayed on Sheet Nos. 100 - 102 in this Tariff.

                  GENERAL TERMS AND CONDITIONS (Continued)
   
	2.39 Seasonal or Seasonal Service: shall mean service provided pursuant to Rate Schedule FT during the consecutive monthly period of November 1 through March 31 or any portion thereof.

	2.40 Scheduled Quantity (or Quantities): shall mean the quantity of Gas which is nominated Daily by Shipper for a specified Receipt or Delivery Point in accordance with a Gas Transportation Contract and the General Terms and Conditions of                                Transporter's Tariff; unless Transporter determines, in
                        accordance with Section 7.4 herein, that it is unable to satisfy any part of
                        Shipper's original Nomination.  In the event of such a determination, the
                        Scheduled Quantity shall be the lesser of:  (1) the quantity of Gas reported
                        in Transporter's response in accordance with Section 7.5(b) herein; or (2)
                        Shipper's revised Intra-day Nomination in accordance with Section 7.5(c)
                        herein.
   
	2.41 Secondary Delivery Point(s): shall mean, with respect to any Shipper, the Delivery Point(s) other than the Primary Delivery Point(s).

	2.42 Secondary Receipt Point(s): shall mean, with respect to any Shipper, the Receipt Point(s) other than the Primary Receipt Point(s).
   
	2.43 Segment: shall mean any Receipt Point or Delivery Point or any
                        portion of the System between any such points.
   
	2.44 Segmented Capacity: a portion of a Shipper's firm capacity used for the purpose of receiving Gas at more than one Receipt Point and/or delivering Gas at more than one Delivery Point.

	2.45 Shipper: shall mean any entity seeking or subscribing to service
                         on the System pursuant to this Tariff.
   
	2.46 Short Term: shall mean service provided pursuant to Rate Schedule FT with a term of less than one year.

	2.47 System: shall mean the pipeline and appurtenant facilities of Transporter that are used in the transportation of Gas.
   
	2.48 System Capacity: shall mean the capacity available for transportation on any Segment of the System, as determined by Transporter, to the best of its ability.
   
	2.49 Tariff: shall mean Transporter's currently effective FERC Gas Tariff.
   
	2.50 Timely Nomination: shall mean a Nomination for service beginning at the start of the next Day.

    GENERAL TERMS AND CONDITIONS (Continued)
   
	2.51 Total Heating Value: shall mean, when applied to a Cubic Foot of Gas, the number of British Thermal Units produced by the complete combustion in a recording calorimeter at constant pressure, of the amount of Gas which would occupy a                          volume of one Cubic Foot at a temperature of 60 degrees Fahrenheit, with the Gas free of water vapor, and under a pressure equal to that of 30 inches of mercury at 32 degrees Fahrenheit and under a standard gravitational force                          (acceleration of 980.665 cm per second per second) with air of the same temperature and pressure as the Gas, when the products of combustion are cooled to the initial temperature of the Gas and air, and when the water formed by                          combustion is condensed to the liquid state.
   
	2.52 Transporter: shall mean Portland Natural Gas Transmission System, its successors or assignees.
   
	2.53 Transporter Overrun Costs: shall mean the costs incurred by
                         Transporter due to unauthorized Shipper overruns, which costs are not otherwise included in Transporter's rates.  Such costs shall consist of : (a) costs incurred by Transporter to correct the effect of any tampering with or alteration of                          Transporter's facilities which permitted an overall overrun to occur at the affected Delivery Point and the costs incurred by Transporter to repair such facilities; (b) costs incurred by Transporter to acquire  additional gas to prevent or                          alleviate curtailments and to reestablish appropriate operating pressure on its system; (c) penalties paid by Transporter to third parties; and(d) costs incurred by Transporter to collect overrun penalties and to administer the crediting                          provisions set forth in Section 8.4.

	2.54 Year: shall mean any period of twelve consecutive Months.

	2.55 100% Load Factor Equivalent Rate: shall mean, for any Rate Schedule, the sum of the products of: (1) the Recourse Demand Rate times the number of Months the service is Applicable each Year, and/or (2) the Recourse Usage Rate times                          the number of days the service is applicable each Year; divided by the number of days Transporter may schedule service under such Rate Schedule in each Year.

   
   
   
                         ORIGINAL SHEET NOS. 308 - 309
                        HAVE NOT BEEN ISSUED, BUT HAVE
                         BEEN RESERVED FOR FUTURE USE

                   GENERAL TERMS AND CONDITIONS (Continued)
   
3.   REQUESTS FOR SERVICE/CREDIT EVALUATION
   
  3.1 Qualifications for Service.  All Shippers requesting service must:
   
        (a) provide the information required by this Section 3;
   
        (b) complete a request for service described herein, on a form that
appears hereafter in this Tariff beginning at Sheet No. 552, or on such form
that is provided by Transporter;
   
        (c) satisfy one of the creditworthiness tests set forth in
Section 3.5; and
   
        (d) satisfy the availability provisions of the applicable Rate
Schedule.
   
  3.2 Submission of Requests for Service.  Requests for service should be
directed to the following address:
   
               Portland Natural Gas Transmission System
               One Harbour Place
               Portsmouth, New Hampshire 03801
   
  3.3 Information to be Included in Request for Service.
   
Any request for service shall include the following:
   
        (a) Type of Service.  A statement that Shipper is requesting service
under one of Transporters Rate Schedules, as those services are defined in
those Rate Schedules.
   
        (b) Gas Quantities.  The Maximum Daily Quantity at each Receipt and
Delivery Point for which Shipper requests service, stated in DTH, and the
estimated total quantities of Gas for which Shipper is requesting
transportation during the term of service.  The Maximum Daily Quantities at
each Receipt and Delivery Point must exceed 200 DTH/Day.
   
        (c) Receipt/Delivery Point(s).  The Receipt Point(s) and Delivery
Point(s) for the requested service together with the name of the entity which
will deliver the Gas to Transporter and the name of the entity to receive the
Gas from Transporter.
   
        (d) Term.  The proposed commencement and termination dates of service.
   
        (e) Shipper Certification.  A statement by Shipper certifying:

                   GENERAL TERMS AND CONDITIONS (Continued)
   
               (1) that Shipper has title or will enter into all contractual
agreements necessary to acquire title to the Gas for which transportation is
requested; and
   
               (2) that Shipper has or will enter into all contractual
agreements necessary to ensure that all upstream and downstream transportation
is in place prior to the date on which service is requested to commence.
   
        (f) Facilities.  Identification and location of any facilities to be
constructed or installed by any party which are necessary for receipt of Gas
by Transporter or for delivery to and/or utilization of Gas by the Shipper or
direct or indirect customers of the Shipper.
   
        (g) Rate.  Percentage of the maximum effective rate under the
applicable Rate Schedule which Shipper is willing to pay or a negotiated rate
which Shipper is willing to pay.  Transporter shall not be obligated to accept
any bid or execute a Gas Transportation Contract at a rate less than the
maximum rate allowable under such Rate Schedule(s) or effective tariff sheet.
Agents.  Shipper shall identify all parties whom Shipper intends to act as its
agent, and shall provide Transporter with sufficient information, as
requested, to verify that such agent is authorized, willing and able to act in
that capacity.  Changes in agent designation shall be submitted by Shipper to
Transporter in a fashion similar to original requests for service.
   
  3.4 Credit Information.
   
        (a) General.  At Transporters request, Shipper shall provide the
following information to Transporter, for evaluation of such Shippers
creditworthiness:
   
               (1) A complete set of its most recent audited financial
statements and interim financial statements since audit date, most recent
annual report, all filings with the Securities and Exchange Commission within
the past twelve (12) Months, including the most recent Forms 10-K and 10-Q,
and applicable annual filings with other regulatory agencies.  If audited
financial statements are unavailable, Shipper shall provide the most recent
unaudited financial statement along with an attestation by its Chief Financial
Officer that the information reflected in the unaudited statements is a true,
current and fair representation of the Shippers financial position.

                   GENERAL TERMS AND CONDITIONS (Continued)
   
               (2) If Shipper is part of a consolidated group a copy of such
consolidated groups most recent annual and quarterly interim financial
statements, audited (if available).
   
               (3) A list of all corporate affiliates, parent companies and
subsidiaries.
   
               (4) Any available reports from credit rating and bond rating
agencies.
   
               (5) The most recent rating of Shippers long-term unsecured
debt securities, by Standard Poors Corporation, Dominion Bond Rating Service,
or Moodys Investor Service.
   
               (6) A bank reference and at least three (3) trade references.
   
               (7) A statement of the legal composition of the business (i.e.,
corporation, limited partnership, etc.).
   
               (8) A statement of the length of time the business has been in
operation.
   
               (9) Verification that Shipper is not operating under any
chapter of the bankruptcy laws and is not subject to liquidations or debt
reduction procedures under state laws, such as an assignment for the benefit
of creditors, or any informal creditors committee agreement.  In the event
that Shipper is a debtor in possession operating under Chapter 11 of the
Federal Bankruptcy Act, Shipper shall so state.  In such event, Shippers
request for service shall be contingent upon Shipper also providing adequate
assurance that the billing will be paid promptly as a cost of administration
under the federal courts jurisdiction.
   
               (10) Verification that Shipper is not subject to the
uncertainty of pending liquidation or regulatory proceedings in state or
federal courts which could cause a substantial deterioration in its financial
condition, which could cause a condition of insolvency, or the inability to
exist as an ongoing business entity.
   
               (11) Verification that no significant collection lawsuits or
judgments are outstanding which would seriously reflect upon the Shippers
ability to remain solvent.

                   GENERAL TERMS AND CONDITIONS (Continued)
   
            (b)  Rated Shippers.  Any Shipper that is requesting
creditworthiness approval under Section 3.5(a) shall provide evidence of the
credit rating of such firms long-term unsecured debt securities.
   
            (c)  Prepayment/Letter of Credit Shippers.  Any Shipper that is
requesting creditworthiness approval under Section 3.5(b) shall provide
either:
   
                 (1)  in the case of prepayment, evidence that Shipper has the
funds readily available to make the prepayment in the amount required by
Section 3.5(b); or
   
                 (2)  in the case of a letter of credit,
   
                      (A)  a written commitment from the proposed issuer
together with a copy of the form of sight draft and letter of credit proposed
to be issued; and
   
                      (B)  information supporting the rating of the proposed
issuers long-term unsecured debt securities.
   
            (d)  Guarantee/Other Form of Security Shippers.  Any Shipper that
is requesting creditworthiness approval under Section 3.5(c) shall provide
either:
   
                 (1)  in the case of a guarantee, the information described in
Section 3.5(a) herein, with respect to the proposed guarantor; or
   
                 (2) in the case some other form of security is offered, a
written description of the form of security offered by the Shipper, together
with a written explanation as to why the security should be accepted in lieu
of a guarantee or letter of credit, and such other information as shall
support Shippers request for creditworthiness approval.
   
            (e)  Other Information.  Shipper shall also provide such other
information as Transporter shall request.
   
       3.5  Credit Evaluation.  For purposes herein, the determination of
Shippers creditworthiness shall be based upon:
   
            (a)  Shippers long-term unsecured debt securities, at the time it
enters into a Gas Transportation Contract (or a precedent agreement therefor)
or Park and Loan Service Contract and throughout the term thereof, are rated
BBB or better by Standard & Poors Corporation, BBB or better by Dominion Bond
Rating Service or Baa2 or better by Moodys Investor Service; or

                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (b)  for a Shipper requesting service under Rate Schedule FT, the
Shipper prepays for service, or provides an irrevocable standby letter of
credit which meets the standards set forth in Section 3.6 herein, to secure
payment of an amount equal to:
   
               (1)   the sum of the Monthly reservation charges applicable to
the proposed service for a three-Month period; plus
   
               (2)  the usage charges applicable to the proposed service for a
three-Month period; or
   
        (c)  for a Shipper requesting service under Rate Schedule IT, the
Shipper prepays for service, or provides an irrevocable standby letter of
credit which meets the standards set forth in Section 3.6 herein, for an
amount equal to the usage charge applicable to the proposed service for a
three-Month period; or
   
        (d)  for a Shipper requesting service pursuant to Rate Schedule FT the
Shipper provides a guarantee or other form of security, from an entity which
meets the creditworthiness standards set forth in Section 3.5(a) herein, to
secure payment of an amount equal to:
   
               (1)  the sum of the Monthly reservation charges applicable to
the proposed service for a three-Month period; plus
   
               (2)  the usage charges applicable to the proposed service for a
three-Month period; or
   
        (e)  for a Shipper requesting service pursuant to the Rate Schedule
IT, the Shipper provides a guarantee or other form of security to secure
payment of an amount equal to the usage charge applicable to the proposed
service for a three-Month period, such guarantee or other security to be
provided by an entity which meets the creditworthiness standards set forth in
Section 3.5(a) herein.
   
        (f) for a Shipper requesting service pursuant to Rate Schedule PAL,
the Shipper provides a guarantee (such guarantee or other security to be
provided by an entity which meets the creditworthiness standards set forth in
Section 3.5(a) herein), or an irrevocable standby letter of credit which meets
the standards set forth in Section 3.6 herein, or other form of security
acceptable to Transporter to secure payment of an amount equal to the higher
of (1) the usage rate applicable to the proposed service for a three-Month
period, or (2) the Maximum Loaned Quantity requested by Shipper for a ninety
day period at the price of gas listed in Gas Daily for Tennessee Gas
Pipelines Zone 6.
   
       3.6  Letters of Credit.  Any letter of credit submitted pursuant to
Section 3.5 herein shall:
   
        (a)  be an irrevocable standby letter of credit in favor of
Transporter, in such form as may reasonably be approved by Transporter, issued
by a commercial bank or financial institution located in the United States or
Canada whose long-term

                   GENERAL TERMS AND CONDITIONS (Continued)
   
unsecured debt securities are rated A or better by Standard & Poors
Corporation, A or better by Dominion Bond Rating Service or A2 or better by
Moodys Investor Service, Inc.; and with an expiration date not earlier than
one (1) Year from the date of issuance; and
   
            (b)  be held by Transporter as security for payment of all amounts
due under the Gas Transportation Contract, and shall be drawn upon by
Transporter, upon Transporters determination that either:
   
                 (1)  Shipper has breached its obligations under the Gas
Transportation Contract and Shipper has failed to cure within five (5) days of
Transporter giving notice of said breach; or
   
                 (2)  if such letter of credit expires prior to the expiration
date of the Gas Transportation Contract, and Shipper does not provide a
replacement letter of credit meeting the requirements of this Section 3 at
least thirty (30) days prior to the expiration of the issued letter of credit.
   
       3.7  Shipper Insolvency or Failure to Demonstrate Creditworthiness.
   
            (a)  Transporter shall not be required to perform or to continue
service for or on behalf of any Shipper which is or has become insolvent or
who, at Transporters request, fails within five (5) Days to demonstrate
creditworthiness as defined in Section 3.5 herein.  In the event a Shipper
which has previously qualified as creditworthy becomes insolvent or can no
longer demonstrate creditworthiness, Transporter shall provide service under
the applicable Rate Schedule for such Shipper if Shipper prepays for such
service or furnishes good and sufficient security, as determined by
Transporter in its reasonable discretion, in an amount equal to:
   
                 (1) the usage charges applicable to the proposed service for
a three-Month period; plus
   
                 (2)  the sum of the Monthly reservation charges (if any)
  applicable to the proposed service for a three-Month period.
   
            In the event that usage charges are prepaid, Transporter shall
upon termination of service refund to Shipper any amount exceeding an amount
equal to the applicable usage rate multiplied by the Scheduled Quantity, less
any applicable penalties.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 317 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
  4.   GENERAL SERVICE CONDITIONS
   
       4.1 Facilities to be in Place Prior to Request.  Transporter shall not
be required to render service on behalf of any Shipper in the event that all
facilities necessary to render such service do not exist at the time such
service is requested.
   
       4.2 Shipper to Comply with all Terms.  Transporter shall not be
required to render service on behalf of any Shipper which on any Day fails to
comply with any or all of the terms of the Gas Transportation Contract(s), the
applicable Rate Schedule, or the General Terms and Conditions, provided,
however, that prior to stopping service to a Shipper, Transporter shall notify
the Shipper in accordance with the notice procedure outlined in Section 23.4
herein.
   
       4.3 Form of Agreement.  Transporter and Shipper shall execute a Gas
Transportation Contract covering the service contemplated.  The executed Gas
Transportation Contract and any applicable schedules, exhibits and
attachments, together with the General Terms and Conditions and applicable
Rate Schedules, shall constitute the entire agreement between the parties for
service provided therein and shall be modified only by written amendment.
   
       4.4 Order of Discounts.  To the extent Transporter discounts the rates
applicable for service under any Gas Transportation Contract under Rate
Schedules in Transporters FERC Gas Tariff, the amount of any such discount
shall be accounted for as a reduction of maximum rates in the following
sequence to the extent any of the following components are included in the
maximum rate.  The first item discounted shall be trackable rate components
(other than the ACA charges), if any, to the extent not otherwise agreed to in
approved settlements then followed by the base rate (maximum less minimum rate
and excluding the trackable rate components cited above.)

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 318 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
  5.   QUALITY OF GAS
   
       5.1 Heating Value.  The Gas to be delivered to Transporter at the
Receipt Point(s) and made available to or on behalf of Shipper at the Delivery
Point(s) under this Tariff shall be Gas having a Total Heating Value of not
less than 967 BTU per Cubic Foot, and not more than 1100 BTU per Cubic Foot,
unless Transporter and Shipper otherwise agree.
   
       5.2 Freedom from Objectionable Matter.  The Gas to be made available
to Transporter at the Receipt Point(s) and made available to or on behalf of
Shipper at the Delivery Point(s) under this Tariff shall be commercially free
(at prevailing pressure and temperature) from objectionable odors, dust and
other solid, liquid or gas matters which might interfere with its
merchantability or cause injury to or interference with proper operation of
the lines, regulators, meters or other appliances through which it flows, and
shall not contain levels of the following contaminants higher than specified
below:
   
            (a)  Sulfur/Hydrogen Sulfide
   
               Not more than twenty (20) grains of total sulfur nor more
               than one-fourth (1/4) grain of hydrogen sulfide per one hundred
               (100) Cubic Feet;
   
            (b)  Oxygen
   
               Not more than two-tenths of one percent (0.2%) by volume of
               oxygen, and Shipper shall make every reasonable effort to
               keep the Gas free of oxygen;
   
            (c)  Carbon Dioxide and Nitrogen
   
               Not more than four percent (4%) by volume of a combined total
               of carbon dioxide and nitrogen components; provided, however,
               that the total carbon dioxide component shall not exceed
               three percent (3%) by volume;
   
            (d)  Water
   
               Shall not contain more than seven pounds (7 lbs.) of water per
               MMcf.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 319 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
       5.3 Temperature.  The Gas to be made available to Transporter at the
Receipt Point(s) and made available to or on behalf of Shipper at the Delivery
Point(s) under this Tariff shall have a temperature of not more than one
hundred twenty (120) degrees Fahrenheit.
   
       5.4 Failure to Conform to Specifications.  If the Gas offered to be
made available to Transporter at the Receipt Point(s) or made available to or
on behalf of Shipper at the Delivery Point(s) shall fail at any time to
conform to any of the specifications set forth in Sections 5.1, 5.2, or 5.3,
then the party receiving such Gas (the "receiving party") shall notify the
other party (the "tendering party") of such deficiency and thereupon the
receiving party may at its option refuse to accept such Gas pending correction
by the tendering party.  Upon the tendering partys failure promptly to remedy
any deficiency, the receiving party may accept such Gas and may make changes
necessary to bring such Gas into conformity with such specifications, and the
tendering party shall reimburse the receiving party for any reasonable expense
incurred by it in effecting such changes.  In no event shall the failure of
any Gas offered for delivery to Transporter by Shipper or for Shippers
account to conform to any of the specifications set forth in Sections 5.1, 5.2
or 5.3 relieve Shipper of Shippers obligation to pay all applicable
reservation and/or usage charges. Further, Shipper shall reimburse Transporter
for all expenses incurred in repairing injuries to Transporters facilities
resulting from Transporters receipt of Gas for the account of Shipper which
does not conform to the specifications set forth in Sections 5.1, 5.2 and 5.3
and, notwithstanding the provisions of Sections 19 and 20, shall indemnify and
save harmless Transporter against any claims for damages arising from such
failure to conform to these specifications.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 320 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
  6.   MEASUREMENT OF GAS AND MEASUREMENT EQUIPMENT
   
       6.1 The volume and the Total Heating Value of the Gas made available
to Transporter at the Receipt Point(s) and made available to or on behalf of
Shipper at the Delivery Point(s) shall be determined as follows:
   
            (a)  Unit of Measurement.  The unit of Gas, for the purpose of
measurement, shall be one (1) Mcf.
   
            (b)  Heating Value per Cubic Foot.  The Total Heating Value of the
Gas per Cubic Foot shall be determined for any Month by taking the weighted
average of the heating values as recorded each Day by an on-line gas
chromatograph or as determined by chromatographic analysis of a sample of Gas
collected Daily during the Month, or any other method mutually agreed upon by
Shipper and Transporter.
   
            (c)  Determination of DTH Delivered.  The DTH delivered shall be
determined by multiplying the Mcf delivered by the ratio of the BTU per Cubic
Foot delivered to 1,000.  For purposes of this determination, the specific
gravity (relative density) and heating value shall be determined at the same
time, as described in Section 6.1(b) herein.
   
            (d)  Determination of Temperature.  The temperature of the Gas
passing through each meter shall be determined for any Day by the continuous
use of a recording thermometer so installed that it may properly record the
temperature of the Gas flowing through each meter.  The arithmetical average
of the temperature recorded each Day shall be used in computing Gas
quantities.  Where electronic gas measurement is used, live flowing
temperature values shall be used.
   
            (e) Specific Gravity.  The specific gravity of the Gas shall be
determined by the use of a recording gravitometer, which shall be checked by
Transporter at least once each Month, or any other method mutually agreed upon
by Shipper and Transporter.
   
            (f)  Deviation from Boyles Law.  The deviation of the Gas from
Boyles Law shall be determined by the use of the table of formulas published
by the American Gas Association Par Research Project NX-19 corrected for
carbon dioxide and nitrogen, or any superseding applicable tables or
calculation methods published by the American Gas Association.  Determinations
of the molecular percentage of N2 and CO2 in the Gas shall be made within
thirty (30) Days after

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 321 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
the Commencement Date and with each chromatographic analysis.  The molecular
percentage of N2 and CO2 thus determined will be used to determine the super
compressibility factors during the ensuing period, with corrections for
specific gravity, temperature and pressure.
   
       6.2  Measuring Station.  Transporter will install, maintain and operate
at its expense, at or near the Delivery Point(s), a measuring station properly
equipped with meters, and other necessary measuring equipment by which the
volume of Gas made available to or on behalf of Shipper shall be measured and
determined in accord with this Section 6 of these General Terms and
Conditions.
   
            (a)  Orifice Meters.  Orifice meters, if used, shall be installed,
and Gas quantities computed, in accordance with American Gas Association
Report No. 3 ANSI/API 2530, Orifice Metering of Gas and Other Related
Hydrocarbons, dated September 1985.
   
            (b)  Positive or Turbine Meters.  Displacement or turbine meters,
if used, shall be installed, and Gas quantities computed, in accordance with
A.G.A. Gas Measurement Manual, Auxiliary Devices, Part No. Six, Copyright
1980; and Measurement of Gas By Turbine Meters, Transmission Measurement
Committee Report No. 7, Copyright 1985.
   
            (c)  New Measurement Techniques.  Upon agreement of Transporter
and affected Shipper(s), electronic or other types of flow computers or any
new Gas measurement technique or method may be installed by Transporter, and
quantities of Gas shall be calculated in accordance with generally accepted
industry practices.
   
       6.3  Check Measuring Equipment.  Shipper may install, maintain and
operate, at its own expense, such check measuring equipment as desired,
provided that such equipment shall be so installed as not to interfere with
the operation of Transporters measuring equipment at or near any Delivery
Point.
   
       6.4  Right to be Present.  Transporter and Shipper shall have the right
to have representatives present at the time of any installing, reading,
cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting
done in connection with the others measuring equipment used in measuring or
checking the measurement of deliveries of Gas under any Gas Transportation
Contract.  The records from such measuring equipment shall remain the property
of the owner of the measuring equipment, but upon request each will submit to
the other its records and charts, together with calculations therefor, for
inspection and verification, subject to return within thirty (30) Days after
receipt thereof.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 322 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
       6.5  Care Required.  All installations of measuring equipment applying
to or affecting deliveries of Gas shall be made in such manner as to permit an
accurate determination of the quantity of Gas delivered and ready verification
of the accuracy of measurement.  Reasonable care shall be exercised by both
parties in the installation, maintenance and operation of pressure regulating
equipment so as to prevent any inaccuracy in the determination of the quantity
of Gas delivered under any Gas Transportation Contract.
   
       6.6  Calibration and Test of Meters.  The accuracy of Transporters
measuring equipment shall be verified by Transporter at reasonable intervals,
and if requested, in the presence of representatives of Shipper, but
Transporter shall not be required to verify the accuracy of such equipment
more frequently than once in any thirty (30) Day period.  In the event either
party shall notify the other that it desires a special test of any measuring
equipment the parties shall cooperate to secure a prompt verification of the
accuracy of such equipment.  The expense of any such special test, if called
for, shall be borne by Shipper if the measuring equipment tested is found not
to be in error in the amount which would cause an aggregate flow rate
calculation greater than two percent (2%).
   
       If, upon test, any measuring equipment, including recording
calorimeters, is found to be in error, and causing a flow rate calculation
error of not more than two percent (2%), previous recording of such equipment
shall be considered accurate in computing deliveries of Gas, but such
equipment shall be adjusted to record accurately.
   
       If, upon test, any measuring equipment shall be found to be inaccurate
by an amount exceeding two percent (2%), at a recording corresponding to the
average hourly rate of flow for the period since the last preceding test, then
any previous recordings of such equipment shall be corrected to zero error for
any period which is known definitely, but in case the period is not known or
agreed upon, such correction shall be for a period of the latter of one-half
of the time elapsed since the date of last test, or a period of sixteen (16)
Days.
   
       6.7  Correction of Metering Errors -- Failure of Meters.  In the event
a meter is out of service, or registering inaccurately, the volume of Gas
delivered shall be determined:
   
            (a)  by using the registration of any check meter or meters, if
installed and accurately registering, provided that the check meter is of a
type commonly used in the industry and has been tested and with eased on the
same frequency as the meter; or, in the absence of (a);

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 323 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (b)  by correcting the error if the percentage of error is
ascertainable by calibration, tests, or mathematical calculation; or in the
absence of both (a) and (b), then;
   
        (c)  by estimating the quantity of delivery on the basis of
deliveries during periods under similar conditions when the meter was
registering accurately.
   
   6.8 Preservation of Metering Records.  Transporter and Shipper shall 
each preserve for a period of at least three (3) Years all test data, charts
and other similar records.
   
7.   NOMINATIONS AND SCHEDULING
   
   7.1 Nominations.
   
        (a) For service requested for any Nomination period under each of
Shippers Gas Transportation Contracts, Shipper, or Shippers agent, shall
provide Transporter with the level of information required to define a
Nomination as provided in WGQ Data Set 1.4.1 Version 1.7, as required by the
Commission in 18 C.F.R. Section 284.12(a) in accordance with Order No. 587-S
issued May 9, 2005.  Transporter shall provide, upon request, an indication of
which data elements it is using and what it is using them for.  Such
Nominations are to be provided to Transporter under the timeline set forth in
Section 7.2 via EDI.  All such transmissions for Nomination purposes shall
comply with all format and protocol requirements specified by the applicable
trading partner agreement.  Nominations may be sent to Transporter for each
Nomination cycle described in Section 7.2 either in hard copy or facsimile not
later than one hour prior to the applicable Nomination receipt deadline.
   
        Nominations for Park and Loan Service under Rate Schedule PAL may only
be made by entities that are party to a Park and Loan Service Contract with
Transporter.  Such nominations can be made on Transporters Interactive
Internet Website consistent with Rate Schedule PAL.
   
        All Nominations shall be considered original Nominations and must be
replaced to be changed. When a Nomination for a date range is received, each
day within the range is considered an original Nomination.  When a subsequent
Nomination is received for one or more days within that range, the previous
Nomination is superseded by the subsequent Nomination only to the extent of
the days specified.  The days of the previous Nomination outside the range of
the subsequent Nomination are unaffected.  Nominations have a prospective
effect only.
   
        Transporter shall support a seven-days-a-week, twenty-four-hours-a-day
Nomination process.  Personnel may be reached by beeper after normal business
hours.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 324 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
All Nominations should include Shipper defined begin dates and end dates. All
Nominations, excluding Intra-day Nominations, should have roll-over options.
   
      7.2 Nomination Cycles.
   
      The following are the standard Nomination cycles:
   
      (i) The Timely Nomination Cycle: 11:30 am for Nominations leaving
control of the nominating party; 11:45 am for receipt of Nomination by
Transporter (including from Title Transfer Tracking Service Providers
(TTTSPs)) ; noon to send quick response; 3:30 p.m. for receipt of completed
confirmations by Transporter from upstream and downstream connected parties;
4:30 p.m. for receipt of Scheduled Quantities by Shipper and point operators
(all times Central Clock Time on the Day prior to gas flow).
      (ii) The Evening Nomination Cycle: 6:00 p.m. for Nominations leaving
control of the nominating party; 6:15 p.m. for receipt of Nominations by
Transporter (including from TTTSPs); 6:30 p.m. to send quick response; 9:00
p.m. for receipt of completed confirmations by Transporter from upstream and
downstream connected parties; 10:00 p.m. for Transporter to provide Scheduled
Quantities to affected shippers and point operators and to provide Scheduled
Quantities to bumped parties (notice to bumped parties), (all times Central
Clock Time on the Day prior to gas flow). Scheduled Quantities resulting from
an evening Nomination that does not cause another Shipper on Transporters
service to receive notice that it is being bumped should be effective at 9:00
am Central Clock Time on the gas Day; and when an evening Nomination causes
another Shipper on Transporters service to receive notice that it is being
bumped, the Scheduled Quantities should be effective at 9:00 am Central Clock
Time on the gas Day.
      (iii) The Intraday-i Nomination Cycle: 10:00 am for Nominations leaving
control of the nominating party; 10:15 am for receipt of Nominations by
Transporter (including from TTTSPs); 10:30 am to send quick response; 1:00
p.m. for receipt of completed confirmations by Transporter from upstream and
downstream connected parties; 2:00 p.m. for Transporter to provide Scheduled
Quantities to affected shippers and point operators and to provide Scheduled
Quantities to bumped parties (notice to bumped parties), (all times listed as
Central Clock Time on the Day of gas flow). Scheduled Quantities resulting
from Intraday-I Nominations should be effective at 5:00 p.m. Central Clock
Time on the Day of gas flow.
      (iv) The Intraday-2 Nomination Cycle: 5:00 p.m. for Nominations leaving
control of the nominating party; 5:15 p.m. for receipt of Nominations by
Transporter (including from TTTSPs); 5:30 p.m. to send quick response; 8:00
p.m. for receipt of completed

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 325 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
confirmations by Transporter from upstream and downstream connected parties;
9:00 p.m. for Transporter to provide Scheduled Quantities to affected Shippers
and point operators (all listed time are Central Clock Time on the Day of gas
flow). Scheduled Quantities resulting from Intraday-2 Nominations should be
effective at 9:00 p.m. Central Clock Time on the Day of gas flow.  Bumping is
not allowed during the Intraday-2 Nomination Cycle.
   
       7.3  Measurement Variance.
   
            Shipper shall receive or cause the applicable Measurement Variance
Quantity to be furnished in kind each Month.  If necessary, Transporter shall
use the applicable Measurement Variance Factor to adjust a Shippers
Scheduled Quantities, or to calculate the Measurement Variance Quantity that a
Shipper may tender at the applicable Receipt Point in lieu of an adjustment to
the Scheduled Quantity.  In no instance shall the Measurement Variance
Quantity be less the one (1) DTH.
   
       7.4  Allocation of Capacity.
   
            (a)  On each Day Transporter shall determine with respect to all
Gas Transportation Contracts:
   
                 (1)  the total quantities which all Shippers have nominated
to be received on that Day;
   
                 (2)  the total quantities which all Shippers have nominated
to be delivered on that Day; and
   
                 (3)  Transporters capacity available in each pipeline
Segment to perform all of the nominated services.
   
            (b)  If due to any cause whatsoever Transporter is unable, on any
Day, to satisfy all Nominations for service through any pipeline Segment
pursuant to the procedures in Section 7.1 above, then Transporter shall
allocate available service in the constrained Segment according to the
following allocation procedure:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 326 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                    GENERAL TERMS AND CONDITIONS (Continued)
   
     (1) First, Transporter shall schedule the following service on a pro-rata
basis based on Maximum Contract Demand: (1) service under Rate Schedule FT-Flex
for Shippers whose nominated volumes Transporter has previously declined to
schedule on 10 days during the current Month and whose current nomination is for
Primary Receipt and Delivery Point(s), (2) service under Rate Schedule FT and
(3) service under Rate Schedule HRS nominated at Primary Receipt and Delivery
Point(s) based on evenly hourly flows at 1/24th of MDQ.  For purposes of
allocating mainline capacity pursuant to this paragraph, any Nomination for
service at a Secondary Receipt Point located downstream of a Shippers Primary
Receipt Point, shall be treated as a Nomination for service at Shippers Primary
Receipt Point, up to the Shippers Maximum Contract Demand at such Primary
Receipt Point.  For purposes of allocating mainline capacity pursuant to this
paragraph, any Nominations for service at a Secondary Delivery Point located
upstream of a Shippers Primary Delivery Point, shall be treated as a Nomination
for service at Shippers Primary Delivery Point, up to the Shippers Maximum
Daily Quantity, pursuant to Section 7.10(a) herein, regardless of the contracted
flow rate, at such downstream Primary Delivery Point.
   
     (2)Second, Transporter shall schedule service under Rate Schedule HRS
nominated at Primary Receipt and Delivery Points up to Shippers MDQ and MHQ to
the extent not scheduled in accordance with Paragraph 1 herein.  For purposes of
allocating mainline capacity pursuant to this paragraph, any Nomination for
service at a Secondary Receipt Point located downstream of a Shippers Primary 
Receipt Point, shall be treated as a Nomination for service at Shippers Primary
Receipt Point, up to the Shippers Maximum Contract Demand at such Primary
Receipt Point.  For purposes of allocating mainline capacity pursuant to this
paragraph, any Nominations for service at a Secondary Delivery Point located
upstream of a Shippers Primary Delivery Point, shall be treated as a Nomination
for service at Shippers Primary Delivery Point, up to the Shippers Maximum
Daily Quantity, pursuant to Section 7.10(a) herein, regardless of the contracted
flow rate, at such downstream Primary Delivery Point.  In the event Transporter
has insufficient capacity to schedule all service within this priority, service
shall be scheduled on a pro-rata basis based on hourly quantity nominated.
   
3) Third, Transporter shall schedule service under Rate Schedule FT-FLEX for
Shippers whose nominated volumes Transporter has previously declined to schedule
on 10 Days during the current Month and whose current nomination is for
Secondary Receipt and Delivery Point(s) and Rate Schedule FT and Rate Schedule
HRS at Secondary Receipt and Delivery Point(s) on a pro-rata basis based on the
highest percentage of the Maximum Demand Rate for the service being provided.
Shippers that are paying the same percentage of the Maximum Demand Rate for such
service shall be allocated capacity on a pro rata basis.  For purposes of
allocating mainline capacity pursuant to this paragraph, any nomination for
service at a Secondary Delivery Point, up to Shippers Maximum Daily Quantity,
shall be scheduled pursuant to Section 7.10(a) herein, regardless of the
contracted flow rate.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 327 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                    GENERAL TERMS AND CONDITIONS (Continued)
   
     4) Fourth, Transporter shall schedule service on the basis of the rate
being paid from highest to lowest, under Rate Schedule IT, Authorized Overrun
under any firm rate schedule, and Rate Schedule FT-FLEX Shippers for whom
Transporter has failed to schedule nominated service less than 10 Days during
the current Month. Nominations for service that are being provided at the same
rate shall be scheduled on a pro-rata basis based on Daily Nominations.  For
purposes of this paragraph, the rate being paid under FT-FLEX shall be the Usage
rate being paid.
   
    5) Fifth, Transporter shall schedule service on a pro-rata basis under Rate
Schedule PAL which is being provided at the maximum rate applicable to the
service.
   
    6) Sixth, Transporter shall schedule service on a pro-rata basis under Rate
Schedule PAL on the basis of the rate being paid.
   
    7) Seventh, Transporter shall schedule "make-up" quantities contemplated in
Section 10.4 herein.
   
    8) Eighth, Transporter shall schedule service pursuant to Article III of Gas
Transportation Contracts (having an initial term of 20 years or longer) under
Rate Schedule FT.
   
     For purposes of applying the above priorities only, any Shipper paying a
rate above the maximum 100% Load Factor Equivalent Rate for the Shippers
service, shall be deemed to be paying the maximum applicable rate.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 328 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
                 Notwithstanding any other provision in this Section, with
regard to service under Rate Schedule IT, Transporter reserves the right,
after one (1) Business Days notice, to subordinate service to a Shipper with
respect to any service provided to that Shipper under a discounted rate or
negotiated rate(s) in order to provide service to another Shipper if such
subordination would result in a higher unit rate to Transporter.  Transporter
will afford any Shipper whose service is being subordinated pursuant to this
provision an opportunity to renegotiate its Gas Transportation Contract to
increase its unit rate, during the period the Shippers service is being
subordinated, to maintain its priority; provided, however, if a Shipper who is
paying a discount rate or negotiated rate(s) chooses to increase the unit rate
in response to the higher offer, it must do so within one (1) Business Day,
and Transporter is obligated to accept any such increase that equals or
exceeds the higher offer.  Once Shipper exercises its right to pay the higher
rate and matches or exceeds the higher offer, then it retains its priority as
between Shippers requesting service at the same rate, and priority shall be
determined as in paragraph (b)(3) if the maximum rate will be paid, or
paragraph (b)(4) above if a rate less than the maximum rate will be paid.  If
Shipper is unwilling to pay the higher rate, it may not offer at a later date 
to pay the higher rate and reclaim its priority.
   
                 Where multiple Nominations have the same scheduling
priority as determined by this Section 7.4(b), Transporter will allocate
capacity by the ranking provided by Shipper in accordance with Section 7.
   
       7.5  Scheduling.
   
            Shippers Nomination shall be deemed to be the Scheduled Quantity
if Transporter determines, pursuant to Section 7.4 above, that adequate
capacity is available to accommodate such Nomination.
   
            (b)  In the event that Transporter determines in accordance with
Section 7.4 above that it is unable to accept all or any part of any Shippers
Nomination, Transporter shall advise Shipper by the time set forth in Section
7.2 for each Nomination cycle of the quantity of Gas, if any, that Transporter
is prepared to make available at each Receipt and Delivery Point under each
Gas Transportation Contract.
   
            (c)  Forthwith after receiving such response from Transporter,
Shipper may provide an Intra-day Nomination to Transporter which shall be no
greater than the available capacity for each Receipt and Delivery Point.  The
least of Shippers revised Nomination, original Nomination, revised
Transporters response to that Nomination or Shippers Intra-day Nomination
for each Receipt and Delivery Point shall be deemed the Scheduled Quantity.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 329 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
            (d)  If such revised Nomination for any Receipt or Delivery Point
is not provided within the time required in Section 7.5(c) above, or if it
exceeds the available capacity for any Receipt or Delivery point, then the
Scheduled Quantity for such Receipt or Delivery Point shall be deemed to be
the quantity of Gas reported in Transporters response in accordance with
Section 7.5(b) above.
   
       7.6  Late Nominations, Modifications of Scheduled Quantities and
Nominations by Replacement Shippers.  Requests for modifications of previously
scheduled service, and Nominations by Replacement Shippers which have just
acquired capacity pursuant to the General Terms and Conditions, will be
accommodated where such requested Nomination or modification does not
interfere with operation of the System or Transporters ability to render
other scheduled service.  In the event capacity remains available on the
System after service has been nominated and scheduled in accordance with
Sections 7.1 through 7.5 above, or capacity becomes available either due to
requests from Shippers which have previously scheduled service to change such
scheduled service, or due to operational or weather situations which permit
Transporter to render additional service without compromising service already
scheduled, Transporter will accept late Nominations for service and shall
endeavor, but shall not be obligated, to provide service which implements such
late Nominations.
   
       7.7  Minimum Quantity Meterable.  In no event shall Transporter be
required to schedule for service a quantity of Gas which Transporter cannot
meter with reasonable accuracy at the Receipt or Delivery Points for which 
Shipper is requesting service.  If Shipper nominates a quantity of Gas which
Transporter cannot meter with reasonable accuracy at the requested Receipt
and/or Delivery Point(s), Transporter will promptly so inform Shipper and
advise Shipper of the minimum quantity that can be metered with reasonable
accuracy at the proposed Receipt and/or Delivery Point(s).
   
       7.8  Coordination with Other Parties.  Shipper shall make all necessary
arrangements with other parties at or upstream of the Receipt Point(s) where
Gas is delivered to Transporter by Shipper or for Shippers account and
downstream of the Delivery Point(s) where Gas is made available to Shipper,
which arrangements shall be compatible with the System operations and
coordinated with Transporters dispatchers.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 330 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
7.9 Shipper to Provide Information.
   
        (a) Balancing.  Prior to the first Day of each Month, Shippers shall
furnish to Transporter, either electronically or in writing, Shippers good-
faith estimates of the Gas quantities Shipper intends to nominate for service
on each Day of such Month.  Such good-faith estimates will be used by
Transporter for balancing purposes and shall not substitute for the Nomination
procedures outlined above, nor shall such good-faith estimates be made
available to Transporters marketing affiliates unless the information is
posted simultaneously on Transporters Interactive Internet Website.
   
        (b) Other.  Shipper shall endeavor to provide Transporter with all
information and material in the possession of or reasonably accessible to
Shipper and required by Transporter to calculate and verify Shippers
Scheduled Quantity at Receipt and Delivery Point(s) each Day and to calculate
and verify the Total Heating Value, the quality specifications, and Shippers
Maximum Daily Quantity at Receipt and Delivery Point(s) each Day.
   
7.10 Flow Rates.
   
        (a) FT-Flex, FT, IT and PAL Receipts and Deliveries, and HRS at
Secondary Delivery Points.   Shipper shall deliver and receive Gas in uniform
Daily quantities during any Month and in uniform hourly quantities during any
Day as nearly as possible at uniform hourly flows.  Any departure from uniform
hourly quantities shall be allowed if mutually agreeable.
   
        (b) HRS Receipts. Unless otherwise agreed, Shipper shall deliver, or
cause to be delivered and Transporter shall receive at each Receipt Point, Gas
in uniform hourly quantities during any Day.
   
        (c) HRS Deliveries.  Unless otherwise agreed, Transporter shall
deliver and Shipper shall receive, or cause to be received at a specified
Primary Delivery Point, Gas at up to the Maximum Hourly Flow Rate, and within
Shippers MHQ, as provided in Shippers Agreement.  Transporter shall deliver
at secondary points subject to the provisions of Section 7.10(a) above and the
provisions of Section 4.3 of Rate Schedule HRS.
   
7.11 Pooling.  If requested by a Shipper or supplier on Transporters system,
Transporter will offer at least one pool.  Deliveries from Receipt Points
should be able to be delivered directly into at least one pool, and Delivery
Points should be able to receive quantities from at least one pool, excluding
non-contiguous facilities.
   
7.12 Confirmation 
   
        (i) With respect to the Timely Nomination/confirmation process at a
Receipt or Delivery Point, in the absence of agreement to the contrary, the
lesser of the confirmation quantities should be the confirmed quantity.  If
there is no response to a request for confirmation or an unsolicited
confirmation response, the lesser of the confirmation quantity or the
previously Scheduled Quantity should be the new confirmed quantity.
   
        (ii) With respect to the processing of requests for increases during
the Intra-day Nomination/confirmation process, in the absence of agreement to
the contrary, the lesser of the confirmation quantities should be the new
confirmed quantity.  If there is no response to a request for confirmation or
an unsolicited confirmation response, the previously Scheduled Quantity should
be the new confirmed quantity.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 331 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (iii) With respect to the processing of requests for decreases during
the Intra-day Nomination/confirmation process, in the absence of agreement to
the contrary, the lesser of the confirmation quantities should be the new
confirmed quantity, but in any event no less than the elapsed-prorated-
scheduled quantity. If there is no response to a request for confirmation or
an unsolicited confirmation response, the greater of the confirmation quantity
or the elapsed-prorated-scheduled quantity should be the new confirmed
quantity.
   
        (iv) With respect to Section 7.12, if there is no response to a
request for confirmation of an unsolicited confirmation response, the
Transporter shall provide the Shipper with the following information to
explain why the Nomination failed, as applicable:
        (1) the Transporter did not conduct the confirmation;
        (2) the Shipper is told by Transporter that the upstream confirming
party did not conduct the confirmation;
        (3) the Shipper is told by Transporter that the upstream service
requester did not have the gas or submit the Nomination;
        (4) the Shipper is told by Transporter that the downstream confirming
party did not conduct the confirmation;
        (5) the Shipper is told by Transporter that the downstream service
requester did not have the market or submit the Nomination. This information
should be imparted to the Shipper on the Scheduled Quantity document.
   
        Elapsed-prorated-scheduled quantity means that portion of the
Scheduled Quantity that would have theoretically flowed up to the effective
time of the Intra-day Nomination being confirmed, based upon a cumulative
uniform hourly quantity for each Nomination period affected.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

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

  
Second Revised Volume No. 1
  
  
  
  


  
                   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
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 333 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
               (A)  make available at each applicable Receipt Point a
quantity of Gas equal to Shippers Scheduled Quantity for that Receipt Point;
   
               (B) take at each applicable Delivery Point a quantity
of Gas equal to Shippers Scheduled Quantity for that Delivery Point;
   
               (C) maintain a balance of deliveries and receipts;
   
               (D) upon notification by Transporter, take appropriate
corrective action in accordance with the provisions of this Tariff; and
   
               (E)  coordinate with Transporter any adjustment to receipts and
deliveries which is undertaken, whether or not the adjustment is undertaken
pursuant to notification from Transporter.
   
       8.2  Scheduling Penalty.
   
        (a)  Applicability.  Transporter may assess against Shipper, for
any day, the greater of the scheduling penalties in accordance with this
Section 8.2, so long as Transporter has notified Shipper that a scheduling
problem has occurred (or will occur absent corrective action having been taken
by Shipper in response to a prior problem that is ongoing, for which notice
was already given by Transporter to Shipper); provided, however, that
Transporter shall not assess a scheduling penalty against Shipper:
   
               (1)  in the event Shippers failure to take corrective action
is caused by Force Majeure conditions as defined in Section 2 of this Tariff;
or
   
               (2)  during any period an Operational Balancing Agreement is
in effect at Shippers Receipt Point and Delivery Point.
   
        (b)  Receipt Point Scheduling.  If on any Day Shipper delivers a
quantity of Gas to Transporter at any Receipt Point which exceeds or falls
short of the Scheduled Quantity for such Receipt Point by the greater of five
percent (5%) or 400 DTH, then Shipper shall pay to Transporter $1.30 per DTH
for all quantities in excess or which fall short of the Scheduled Quantity by
more than the greater of five percent (5%) or 400 DTH of the Scheduled
Quantity for such Receipt Point.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 334 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
            (c)  Delivery Point Scheduling.  If on any Day Shipper takes
delivery of a quantity of Gas from Transporter at any Delivery Point
which exceeds or falls short of the Scheduled Quantity for such Delivery
Point by the greater of five percent (5%) or 400 DTH, then Shipper shall
pay to Transporter $1.30 per DTH for all quantities in excess of or which
fall short of the Scheduled Quantity by more than the greater of five
percent (5%) of the Scheduled Quantity or 400 DTH for such Delivery
Point.
   
            (d)  Penalty Waiver.  Transporter shall waive such scheduling
penalties in the event that Shippers reason for exceeding the applicable
tolerance is the result of actions by Transporter or an interruption of
upstream gas supply or transportation service.  As to any such upstream gas
supply or transportation service interruption, Shipper must furnish to
Transporter all information necessary to document and quantify the dimensions
of that upstream interruption.
   
       8.3  Imbalance Penalties.
   
            (a)  Applicability.  Transporter may assess against Shipper one or
more imbalance penalties in accordance with this Section 8.3, so long as
Transporter has notified Shipper that an imbalance has occurred (or will
occur,  absent corrective action having been taken by Shipper in response to a
prior problem that is ongoing, for which notice was already given by
Transporter to Shipper); provided, however, that Transporter shall not assess
a Daily or Monthly imbalance penalty against Shipper:
   
                 (1)  in the event Shippers failure to take corrective action
is caused by Force Majeure conditions as defined in Section 2 of this Tariff;
or
   
                 (2)  during any period an Operational Balancing Agreement is
in effect at Shippers Receipt Point and Delivery Point.
   
       In addition, Transporter shall not assess a Monthly imbalance penalty
against Shipper if, upon receiving Transporters notification of an imbalance
situation, Shipper takes action, in coordination with Transporter, which
corrects such imbalance within thirty (30) days of notification.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 335 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
      (b) Daily Balancing. If on any Day the quantities of Gas Shipper
delivers to Transporter at the Receipt Point(s) ("Receipts") (adjusted by the
applicable Measurement Variance Quantity) are in excess of or deficient by the
greater of five percent (5%) or 400 DTH of the quantities of Gas taken by
Shipper at the Delivery Point(s), Transporter shall provide Shipper with
notification, within such period of time as reasonably required by Transporter
to protect the integrity of its System, to initiate corrective action. In the
event Shipper fails to initiate during the next available timely nomination
cycle the corrective action as advised by Transporter, Transporter may charge
Shipper $1.30 per DTH for any receipts which are in excess or deficient by the
greater of five percent (5%) or 400 DTH of deliveries. Shipper shall have 30
Days after notification to reduce the cumulative imbalance to zero.
   
      (c) Monthly Balancing.
   
            (1) At least seven (7) Days prior to the end of each Month
Transporter shall notify Shipper if it appears that Receipts (adjusted by the
applicable Measurement Variance Quantity) will be in excess of or deficient by
two percent (2%) or more of deliveries. Transporter may charge Shipper $1.30
per DTH for any Receipts (adjusted by the applicable Measurement Variance
Quantity) which are in excess of or deficient by two percent (2%) of
deliveries, if:
   
                  (A) within one (1) Business Day after Transporters
notification, Shipper fails to come to an agreement with Transporter upon the
appropriate corrective action to be implemented;
   
                  (B) Shipper fails to implement the agreed-upon corrective
action; and/or
   
                  (C) such corrective action fails to reduce the cumulative
balance to zero within 30 days after Transporters notification.
   
            (2) Imbalances for any Month that become apparent after the time
for notice has expired shall be considered as an imbalance for the Month
following the Month in which the imbalance became apparent.
   
            (3) In any Month in which Shipper may be liable for both Daily and
Monthly imbalance penalties, the sum of the excess and deficiency quantities
for which Shipper has been assessed a Daily imbalance penalty shall be

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 336 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
deleted from excess or deficient quantities used in calculating the Monthly
imbalance penalty.  In calculating excess and deficient quantities,
Transporter shall take into consideration make-up quantities that were used
pursuant to Transporters notification to correct any excess or deficiency in
deliveries under other Gas Transportation Contracts between Transporter and
Shipper.
   
        (d)  Penalty Waiver.  Transporter shall waive such balancing penalties
in the event that Shippers reason for exceeding the applicable tolerance is
the result of actions by Transporter or an interruption of upstream gas supply
or transportation service.  As to any such upstream gas supply or
transportation service interruption, Shipper must furnish to Transporter all
information necessary to document and quantify the dimensions of that upstream
interruption.
   
  8.4  Overrun Penalty.
   
        (a) Applicability.  Transporter may assess against Shipper one or more
overrun penalties in accordance with this Section 8.4; provided, however, that
during the period that an Operational Balancing Agreement is in effect at the
relevant Delivery Point:
   
                 (1) overrun penalties shall apply during the periods in which
operational balancing agreements are in effect at the relevant Delivery
Point(s) only if: (A) there is an overall overrun at the Delivery Point and
(B) such overrun causes operational difficulties or affects the integrity of
the System or Transporters ability to render scheduled service.
   
                 (2) upon giving or receiving notice of the termination of any
effective Operational Balancing Agreement, Transporter shall promptly notify
all Shippers via posting on its electronic bulletin board, and will provide
written notification of the giving or receiving of such notice to the affected
shippers by fax or overnight mail.
   
        (b) Overrun Penalties.  If on any Day Shipper takes delivery of a
quantity of Gas from Transporter at any Delivery Point which exceeds Shippers
MDQ at such Delivery Point by two percent (2%) or more, then Shipper shall pay
to Transporter $2.50 for each Dth up to 50 Dth in excess of the

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 337 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
applicable MDQ, and $25 per DTH for any additional quantity of unauthorized
Daily overrun taken by Shipper at such Delivery Point.
   
      8.5 Crediting of Penalty Revenues. In the event that Transporter
assesses and collects penalties in accordance with the provisions of Sections
8.2 - 8.4, such revenues in excess of Transporter Penalty Costs (such excess
revenues herein referred to as "Excess Penalty Revenues") shall be credited to
the bills of firm and interruptible service Shippers who did not receive
scheduled service as a result of the actions that led to penalties being
assessed by Transporter. If more than one firm or interruptible service
Shipper was unable to receive scheduled service, then the Excess Penalty
Revenues shall be credited among such Shippers based on the ratios of the
Scheduled Quantity of gas each Shipper was unable to receive under firm or
interruptible service rate schedules divided by the total Scheduled Quantities
of gas that all Shippers were unable to receive under such firm or
interruptible service rate schedules.
   
      Shippers entitled under this Section 8.5 to Excess Penalty Revenue
Credits shall receive such credits to their invoices for the month following
the month in which the later of the following events occurs:
   
      (1) Transporter collects the associated Excess Penalty Revenues from all
Shippers responsible for the actions that led to penalties being assessed by
Transporter; and
   
      (2) Transporter reasonably is able to determine the total amount of all
Transporter Penalty Costs.
   
      8.6 Automatic Waiver. If no shipper has been impeded from receiving its
scheduled service, Transporter shall not impose penalties under this Section
8.
   
      8.7 Penalty Provisions Not Exclusive. Nothing in this Section 8 shall
limit Transporters right to take such action as may be required to adjust
deliveries and receipts in order to alleviate conditions which threaten the
integrity of its System, nor prevent Transporter from exercising any other
legal remedies which may be available.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 338 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
      8.8 Operational Balancing Agreements: Transporter will operate its
system in a manner that will discourage and limit any instances in which the
actions of one or more shippers (e.g., excess or deficient tenders of gas at
Receipt Points, excess or deficient takes of gas at Delivery Points, or
similarly disruptive imbalances between gas that is nominated, scheduled and
transported for shippers) result in degraded service or operational conditions
for other Shippers. Transporters Scheduling, Imbalance and Overrun penalties
are intended to deter such actions in situations in which the interests of an
individual Shipper depart from those of the Joint interests of Transporters
entire base of Shippers. Consequently, it is Transporters policy to mitigate
such adverse operating circumstances by entering into Operational Balancing
Agreements with willing, mutually agreeable, creditworthy third parties that
will aggregate the receipt or delivery entitlements of two or more Shippers,
with respect to gas transportation Nominations, scheduling, dispatching,
balancing and related gas receipt or delivery functions. The general
provisions of an Operational Balancing Agreement satisfactory to Transporter
appear hereafter, in pro forma fashion, in Transporters Tariff. Such form of
Operational Balancing Agreement shall not prevent Transporter from entering
into another such agreement with mutually agreeable third parties with
negotiated provisions which depart from those contained in this pro forma
agreement. During those periods when any such Operational Balancing Agreement
is in effect for any Shippers Receipt and Delivery Points, such Shipper shall
not be subject to the scheduling and imbalance penalties of Sections 8.2 and
8.3 hereof.
   
      8.9 Apportionment Practices. Shippers respective entitlements shall be
determined with reference to the reverse order of the priorities specified in
Section 10.2 herein, regardless of whether the Shipper receives service under
one or multiple contracts. In the absence of an Operational Balancing
Agreement at a Receipt or Delivery Point, gas will be apportioned pro rata on
any Day among multiple Shippers, based upon each Shippers accepted and
approved Nomination, across all applicable services.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 339 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
      8.10  Imbalance Trading and Netting
   
      Imbalance Trading is available for any daily imbalance that would
otherwise be resolved pursuant to Section 8.3(b) above. Transporter will allow
Shippers to trade daily imbalances if the two daily imbalances offset each
other in such a way that the net daily imbalance after the completion of the
trade for each Shipper would be reduced to a quantity closer to zero. A
Shipper may trade any daily imbalance with another Shipper, provided that the
trade does not violate any notices issued by Transporter relating to operation
of Transporters system. A Shipper may net imbalances between its service
agreements.
   
      Imbalance trading may be done at any time during the gas flow month, and
until the seventeenth Business Day after the end of the month. To facilitate
the trading process, Transporter will, upon receipt of Shippers
authorization, post the Shippers daily imbalance quantity on Transporters
Interactive Internet Website. Authorizations to post imbalances that are
received by Transporter by 11:45 A.M. will be effective by 8 A.M. the next
business day (central clock time). An authorization to post imbalances will
remain in effect until cancelled by the Shipper giving the authorization.
Daily imbalances previously authorized for posting will be posted as they
become available, but no later than the ninth business day of the month;
however, Transporter will not be required to post zero imbalances. The
information posted will also identify the contract, the area where the
imbalance arose and the gas day applicable to the posted daily imbalance
quantity. Transporter will provide to all customers the ability to view, and
upon request, download posted imbalance information.
   
      Transporter shall enable the imbalance trading process by (i) receiving
the request for imbalance trade, (ii) receiving the imbalance trade
confirmation, (iii) sending the imbalance trade notification to all affected
parties, and (iv) reflecting the trade prior to or on the next monthly Shipper
Imbalance. When trading imbalances, the quantity to be traded must be
specified. After receipt of an imbalance trade confirmation, Transporter will
send the imbalance trade notification to the initiating trader and the
confirming trader no later than noon (central clock time) on the next business
day. Imbalance trades can only be withdrawn by the initiating trader and only
prior to the confirming traders confirmation of the trade. Imbalance trades
are considered final when confirmed by the confirming trader. Transporter
shall update the Shippers daily imbalance data to reflect any final trades of
imbalance quantities no later than 9 a.m. CT on the next business day after
the trade is finalized.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 340 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
9.   RECEIPT POINTS AND DELIVERY POINTS
   
       9.1  Receipt Points.  The Primary Receipt Point(s) at which Transporter
will receive Gas from Shipper or for Shippers account shall be those set
forth on Schedule 1 appended to the Gas Transportation Contract.  Such
Schedule 1 shall also set forth the Maximum Daily Quantity and minimum receipt
pressures applicable to each Primary Receipt Point.  Maximum Contract Demand
is listed in Schedule 1 of Gas Transportation Contracts for firm and winter
firm service.  Subject to the availability of capacity, all other Receipt
Points shall be available, under 18 C.F.R. Part 284 of the FERCs Regulations,
as Secondary Receipt Point(s) for Shippers with Gas Transportation Contracts
for firm service, subject to Section 8.1(b)(1) herein.
   
       9.2  Additions and Deletions of Primary Receipt Points.  Subject to
Section 9.5 herein, the currently effective Schedule 1 appended to each Gas
Transportation Contract may be revised from time to time in order to reflect
additions or deletions of Primary Receipt Points, or changes in the Maximum
Contract Demand, Maximum Daily Quantities, or minimum receipt pressures
applicable to Primary Receipt Points.
   
       9.3  Delivery Points.  The Primary Delivery Point(s) at which
Transporter will make Gas available to or on behalf of Shipper shall be those
set forth on Schedule 2 appended to the Gas Transportation Contract(s). Such
Schedule 2 shall also set forth the Maximum Daily Quantity and maximum and
minimum delivery pressures applicable to each such Primary Delivery Point.
Subject to the minimum pressures specified in Shippers Gas Transportation
Contract, Transporter shall make deliveries at each Delivery Point as nearly
as practicable at System line pressures.  Subject to the availability of
capacity, all other Delivery Points shall be available, under Part 284 of the
FERCs Regulations, as Secondary Delivery Point(s) for Shippers receiving firm
service, subject to Section 8.1(b)(1) herein.
   
       9.4  Additions and Deletions of Primary Delivery Points.  Subject to
Section 9.5 herein, the currently effective Schedule 2 appended to each Gas
Transportation Contract may be revised from time to time in order to reflect
additions or deletions of Primary Delivery Points, or changes in the Maximum
Daily Quantities or minimum delivery pressures applicable to such Primary
Delivery Points.
   
       9.5  Primary Receipt and Delivery Points to be Added Only where
Capacity Available.  Shippers may add a Primary Delivery Point or Primary
Receipt Point for firm service only if sufficient firm capacity is available
at that point of Segment and there are no pending requests for firm service at
that point or Segment.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 341 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                    GENERAL TERMS AND CONDITIONS (Continued)
   
10.  SERVICE INTERRUPTIONS AND PRIORITIES
   
        10.1 Service under this Tariff may be interrupted or curtailed for
reasons of Force Majeure or other unforeseen circumstance, and Transporter
shall give Shipper notice as soon as reasonably possible of such interruption
or curtailment.
   
        10.2 In the event that Force Majeure or other unforeseen circumstances
require Transporter to curtail previously scheduled service through any
pipeline Segment, such curtailment shall be undertaken as follows:
   
        (a) First, Transporter shall curtail service pursuant to Article III of
Gas Transportation Contracts (having an initial term of 20 years or longer)
under Rate Schedule FT.
   
        (b) Second, Transporter shall curtail "make-up" service contemplated in
Section 10.4.
   
        (c) Third, Transporter shall curtail on a pro-rata basis service under
Rate Schedule PAL on the basis of the rate being paid.
   
        (d) Fourth, Transporter shall curtail on a pro-rata basis service under
rate Schedule PAL which is being provided at the maximum rate applicable to the
service.
   
        (e) Fifth, Transporter shall curtail service under Rate Schedule IT and
Rate Schedule HRS Overrun on the basis of the rate being paid, from lowest to
highest. Service which is being provided at the same rate shall be curtailed on
a pro-rata basis based on Scheduled Quantities.
   
        (f) Sixth, Transporter shall curtail service, on a pro-rata basis based
on Scheduled Quantities, to those Shippers receiving service under Rate
Schedule FT nominated at Secondary Receipt or Delivery Point(s), those Shippers
receiving service under Rate Schedule HRS at Secondary Receipt or Delivery
Point(s) and those Shippers receiving service under Rate Schedule FT-FLEX
nominated at Secondary Receipt or Delivery Point(s).
   
        (g) Seventh, Transporter shall curtail service, on a pro-rata basis, for
Shippers receiving service under Rate Schedule HRS nominated at Primary Receipt
and Delivery Point(s) for that portion of service that is above a flow rate per
hour equal to 1/24 of Shippers MDQ.
   
        (h) Eighth, Transporter shall curtail service, on a pro-rata basis based
on Scheduled Quantities, to Shippers receiving service under Rate Schedule FT
nominated at Primary Receipt and Delivery Point(s), those Shippers receiving
service under Rate Schedule HRS nominated at Primary Receipt and Delivery
Point(s) for that portion of service that is equal to 1/24 of Shippers MDQ,
and Shippers receiving service under Rate Schedule FT-FLEX nominated at Primary
Receipt and Delivery Point(s).
   
For purposes of applying the above priorities only, any shipper paying a rate
above the maximum 100% Load Factor Equivalent Rate for the shippers service,
shall be deemed to be paying the maximum applicable rate.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 342 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
       10.3 Repair and Maintenance.  Transporter shall have the right to
interrupt or curtail service in whole or in part on all or a portion of its
System from time to time to perform repair or maintenance that are non-routine
in nature, and other construction or testing procedures as necessary to
maintain operational capability on the System or to comply with applicable
regulatory requirements.  Transporter shall exercise due diligence to schedule
such activity so as to minimize disruptions of service to Shippers, and shall
confirm Nominations as set forth in Section 7.5(b) herein taking into account
routine repair and maintenance.
   
            (a)  Annual Notices.  No later than each March 31, Transporter
will post on its Interactive Internet Website a projection of repair,
maintenance, and other construction or testing procedures scheduled for the
upcoming Year, from April 1 through March 31, which are likely to affect
Transporters capacity.  Transporter may in good faith modify the projected
schedule in any manner, at any time during such Year, and will provide notice
of any change in the schedule as soon as possible after deciding to make such
a change.  Transporter will have no liability if actual activity does not
conform to the projected annual schedule.
   
            (b)  Monthly Notices.  At least ten (10) Days prior to the first
Day of each Month, Transporter will post on its Interactive Internet Website a
schedule of repair, maintenance, and other construction or testing procedures
for such Month which are likely to affect System Capacity.  Such notice will
include an estimate of the duration of the activity.  Transporter will have no
liability if it must modify the schedule or perform additional unscheduled
repair, maintenance and other construction or testing procedures during the
Month.
   
       10.4 Make-up Service.  In the event of interruption or curtailment of
service, Shipper shall be given the opportunity on a subsequent Day or Days to
make up such loss of service provided that such make-up service shall not
preclude or interfere with the service priorities set forth in Section 7.  In
no event shall Shipper be liable for duplicative charges with respect to
interrupted scheduled service, for which Shipper has previously paid, which
was interrupted and subsequently made up pursuant hereto.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 343 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 343
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

11. CAPACITY RELEASE


 

11.1 Purpose. This Section 11 sets forth the specific terms and

conditions applicable to Transporter's implementation of the capacity release

program, as provided by Order Nos. 636 and 636-A, 712 and 712-A, and 18 C.F.R.


 

11.2 Definitions. For purposes of this Section, the following

definitions shall apply:


 

(a) Asset Manager: shall be a party that agrees to manage gas supply

and transportation arrangements for another party, as a Replacement Shipper.


 

(b) Asset Management Arrangement: shall mean any pre-arranged release

to an Asset Manager which contains a condition that the Releasing Shipper may

call upon the Asset Manager to deliver gas to, or purchase gas from, the

Releasing Shipper in an amount up to 100 percent of the released capacity,

subject to the following conditions:


 

(1) For releases of one year or less, the Asset Manager's

delivery or purchase obligation must apply on any day during a minimum period

of the lesser of five months (or 155 days) or the term of the release.


 

(2) For releases of more than one year, the Asset Manager's

delivery or purchase obligation must apply on any day during a minimum period

of five months (or 155 days) of each twelve-month period of the release, and

on five-twelfths of the days of any additional period of the release not equal

to twelve months.


 

(c) Prearranged Replacement Shipper: shall mean a Shipper that has

reached an agreement with a Releasing Shipper to acquire its released capacity

prior to the time that the Releasing Shipper submits its Release Notice to

Transporter in accordance with the provisions of this Section.


 

(d) Release Notice: shall mean the notice that a Releasing Shipper

provides to Transporter in accordance with the provisions of Section 11.6

herein.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute Original Sheet No. 343A  : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

(e) Releasing Shipper: shall mean any Shipper that has executed a Gas

Transportation Contract for firm service and that elects to release, on a

temporary or permanent basis, all or a portion of its firm capacity rights on

the System to Transporter for resale by Transporter to another Shipper under

the terms and conditions set forth in this Section.


 

(f) Replacement Reservation Charge: shall mean the reservation charge

billed to the Replacement Shipper by Transporter.


 

(g) Replacement Shipper: shall mean any Shipper that executes a Gas

Transportation Contract in the form prescribed by this Tariff, acquiring

capacity rights from a Releasing Shipper.


 

(h) Retail Access Program: shall mean a pre-arranged release to a

party which will use the released capacity to provide gas supply to retail

customers pursuant to a retail access program approved by a state agency with

jurisdiction over the local distribution company that provides service to such

retail customers.


 

(i) Successful Bidder: shall mean the Shipper that Transporter

determines submitted the highest bid in accordance with the criteria specified

in Sections 11.9 or 11.10 herein.


 

11.3 Applicability. This Section is applicable to any Releasing

Shipper. A Releasing Shipper shall have the right to release any portion of

its firm capacity on a temporary or permanent basis, but only to the extent

that the capacity so released is acquired by another party pursuant to the

provisions of this Section. A Replacement Shipper may re-release firm

capacity to a secondary

  





 
  

  

  
Issued by: 
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 344 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 344
  
Second Revised Volume No. 1
  
  
  
  


  
 GENERAL TERMS AND CONDITIONS (Continued)


 

Replacement Shipper pursuant to the same terms and conditions that apply to a

Releasing Shipper. This Section is also applicable to offers by Shippers to

assume or acquire capacity pursuant to Section 11.13 herein.


 

11.4 Minimum and Maximum Release Provisions. The following minimum

and maximum release provisions shall apply. The maximum term of any release

of firm capacity shall not exceed the remaining term of Releasing Shipper's

Gas Transportation Contract. Any release of capacity must be of an amount

that can be reasonably accurately measured. The maximum quantity released may

not exceed on a Daily basis or over the remaining term of the Replacement

Shipper's Gas Transportation Contract the maximum capacity to which the

Releasing Shipper has right under its Gas Transportation Contract.


 

11.5 Exceptions to Release Notice, Bidding and Allocation Requirements

of this Section. In the following situations, the Releasing Shipper will not

be required to post a Release Notice or to comply with the bidding and

allocation requirements of Sections 11.6, 11.7, 11.8 and 11.9 herein:


 

(a) Capacity Release to Prearranged Replacement Shippers for Thirty-

One (31) Days or less. If a Releasing Shipper has found a Prearranged

Replacement Shipper willing to acquire released capacity for a term equal to

or less than thirty-one (31) Days, the Releasing Shipper may, but need not,

post a Release Notice or comply with the bidding and allocation requirements

of this Section. The Releasing Shipper shall notify Transporter of the terms

of the proposed release transaction in writing or via Transporter's

Interactive Internet Website as soon as possible, but in any event no later

than twenty-four (24) hours after it has found such Prearranged Replacement

Shipper. The Releasing Shipper's Notice to Transporter shall include all

information listed in Section 11.6(c)(1)-(7), as well as any other relevant

terms of the proposed release transaction. If applicable, Transporter shall

verify the creditworthiness of the Prearranged Replacement Shipper in

accordance with this Tariff. As soon as these provisions are satisfied,

Transporter shall make available a Gas Transportation Contract to the

Prearranged Replacement Shipper and a Capacity Release Agreement to the

Releasing Shipper, which shall then have two (2) Business Days to execute the

agreements. Transporter shall post a notice describing the terms of the

release transaction on Transporter's Interactive Internet Website as soon as

possible, but in no event later than forty-eight (48) hours after the

commencement of the release transaction.


 

Unless the released capacity otherwise qualifies for an exception to the

capacity release notice, bidding, and allocation requirements under this

Section 11.5, Releasing Shipper shall not rollover, extend or in any way

continue any release subject to Section 11.5(a) until 28 days after the

initial release period has ended, unless it posts a Release Notice and follows

the bidding and allocation


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 345 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 345
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

requirements of Section 11. Nothing in the preceding sentence shall preclude

a Releasing Shipper from releasing capacity on a different Segment of the

pipeline, which does not utilize or overlap the Segment on which capacity

previously was released, to such Prearranged Replacement Shipper during the

twenty-eight (28) Day restricted period.


 

(b) Capacity Releases for a term greater than one year to Prearranged

Replacement Shippers Offering to Pay the Maximum Rate that Transporter is

Authorized to Charge. If a Releasing Shipper has found a Prearranged

Replacement Shipper willing to acquire, for a term greater than one year, the

full amount of the capacity released at the maximum rate Transporter is

authorized to charge, the Releasing Shipper need not post a Release Notice or

comply with the bidding and allocation requirements of this Section. The

Releasing Shipper shall notify Transporter of the terms of the proposed

release transaction in writing or via Transporter's Interactive Internet

Website. The Releasing Shipper's notice to Transporter shall include all

information listed in Section 11.6(c)(1)-(7), as well as any other relevant

terms of the proposed release transaction. Transporter shall post notice of

the terms of the proposed accepted release on its Interactive Internet Website

as soon as possible, but in no event later than forty-eight (48) hours after

the commencement of the release transaction, and, if applicable, will verify

the creditworthiness of the Prearranged Replacement Shipper in accordance with

this Tariff. As soon as these provisions are satisfied, Transporter shall

make available a Gas Transportation Contract to the Prearranged Replacement

Shipper and a Capacity Release Agreement to the Releasing Shipper, which shall

then have two (2) Business Days to execute the agreements.


 

(c) Capacity Releases to a Prearranged Replacement Shipper

participating in a Retail Access Program. If a Releasing Shipper has found a

Prearranged Replacement Shipper acquiring capacity for a Retail Access

Program, the Releasing Shipper need not post a Release Notice or comply with

the bidding and allocation requirements of this Section. The Releasing

Shipper shall notify Transporter of the terms of the proposed release

transaction in writing or via Transporter's Interactive Internet Website. The

Releasing Shipper's notice to Transporter shall include all information listed

in Section 11.6(c)(1)-(7), as well as any other relevant terms of the proposed

release transaction, including an indication that the release is being

completed pursuant to a Retail Access Program. Transporter shall post notice

of the terms of the proposed accepted release on its Interactive Internet

Website as soon as possible, but in no event later than the first nomination

after the release truncation commences, and will verify the creditworthiness

of the Prearranged Replacement Shipper in accordance with this Tariff. As

soon as these provisions are satisfied, Transporter shall make available a Gas

Transportation Contract to the Prearranged Replacement Shipper and a Capacity

Release Agreement to the Releasing Shipper, which shall then have two (2)

Business Days to execute the agreements.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 345A : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

(d) Capacity Releases to an Asset Manager pursuant to an Asset

Management Arrangement. If a Releasing Shipper has found a Prearranged

Replacement Shipper acquiring capacity pursuant to an Asset Management

Arrangement, the Releasing Shipper need not post a Release Notice or comply

with the bidding and allocation requirements of this Section. The Releasing

Shipper shall notify Transporter of the terms of the proposed release

transaction in writing or via Transporter's Interactive Internet Website. The

Releasing Shipper's notice to Transporter shall include all information listed

in Section 11.6(c)(1)-(7), as well as any other relevant terms of the proposed

release transaction, including an indication that the release is being

completed pursuant to an Asset Management Arrangement. Transporter shall post

notice of the terms of the proposed accepted release on its Interactive

Internet Website as soon as possible, but in no event later than the first

nomination after the release truncation commences, and will verify the

creditworthiness of the Prearranged Replacement Shipper in accordance with

this Tariff. As soon as these provisions are satisfied, Transporter shall

make available a Gas Transportation Contract to the Prearranged Replacement

Shipper and a Capacity Release Agreement to the Releasing Shipper, which shall

then have two (2) Business Days to execute the agreements.


 

(e) Emergency Capacity Releases. In the event that:


 

(1) Transporter has an emergency on its System, which would

otherwise cause it to curtail service to one or more Shippers under Section 10

herein; or


 

(2) a Shipper notifies Transporter that it faces an emergency

situation that requires or will require it to obtain alternative

transportation capacity on the System;

  





 
  

  

  
Issued by: 
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 346 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        Transporter shall post notice of that emergency on its Interactive
Internet Website as soon as possible.  Transporter shall make all reasonable
efforts to facilitate voluntary releases of capacity from one shipper to
another at negotiated rates in order to remedy the emergency capacity
curtailment.  In the event of an emergency of which Transporter has been
notified in accordance with this Section, where two Shippers have negotiated a
pre-arranged agreement to release capacity to remedy the emergency, the
Releasing Shipper need not post a Release Notice or comply with the bidding
and allocation requirements applicable to pre-arranged transactions set forth
in Sections 11.6 through 11.10 herein.  The Releasing Shipper shall notify
Transporter of the terms of the proposed pre-arranged release transaction in
writing or via Transporters Interactive Internet Website as soon as possible,
but in no event later than twenty-four (24) hours after reaching an agreement
to release capacity.  The Releasing Shippers notice to Transporter shall
include all information listed in Section 11.6(c)(1)-(7), as well as any other
relevant terms of the proposed release transaction.  If applicable,
Transporter shall verify the creditworthiness of the Prearranged Replacement
Shipper in accordance with this Tariff.  As soon as these provisions are
satisfied, Transporter shall make available a Gas Transportation Contract to
the Prearranged Replacement Shipper and a Capacity Release Agreement to the
Releasing Shipper, which shall have two (2) Business Days to execute the
agreements.  Transporter shall post a notice describing the terms of the
emergency agreement on its Interactive Internet Website as soon as possible,
but in no event later than forty-eight (48) hours after the commencement of
the emergency release transaction.
   
        Shippers are encouraged to reach agreements among themselves in
advance of emergencies to cover capacity releases in the event an emergency
should occur.  The terms of such advance agreements may be posted on
Transporters Interactive Internet Website at any time in advance of the
emergency.
   
        11.6 Notice by Releasing Shipper of its Election to Release Capacity.
Any Releasing Shipper that elects to release all or a portion of its firm
capacity rights shall provide Transporter with a Release Notice in writing or
via Transporters Interactive Internet Website.  Any terms and conditions
listed in the Release Notice must be non-discriminatory and consistent with
Transporters Tariff and the Gas Transportation Contract with the Releasing
Shipper.
   
        (a) Timeline for Capacity Releases. The capacity release timeline set
forth in this Section 11.6 is applicable to all parties involved in the
capacity release process; however, in accordance with WGQ Standard 5.3.1,
Version 1.7, it is only applicable if:
1) all information provided by the parties to the transaction is valid and the
Replacement Shipper has been determined to be creditworthy before the capacity
release bid is tendered, and
2) there are no special terms or conditions of the release.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 347 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
In accordance with WGQ Standard 5.3.2, Version 1.7, the timeline for biddable
releases (less than 1 year):
-    Offers should be tendered by 12:00 P.M. on a Business Day;
-    open season ends no later than 1 P.M. on a Business Day (evaluation
period begins at 1 P.M. during which contingency is eliminated, determination
of best bid is made, and ties are broken);
-    evaluation period ends and award posting if no match required at 2 P.M.;
-    match or award is communicated by 2 P.M.;
-    match response by 2:30 P.M.;
-    where match required, award posting by 3 P.M.;
-    contract issued within one hour of award posting (with a new contract
number, when applicable); nomination possible beginning at the next available
nomination cycle for the effective date of the contract (Central Clock Time).
   
In accordance with WGQ Standard 5.3.2, Version 1.7, the timeline for biddable
releases (1 year or more):
-    Offers should be tendered by 12:00 P.M. four Business Days before award;
-    open season ends no later than 1 P.M. on the Business Day before timely
Nominations are due (open season is three Business Days);
-    evaluation period begins at 1 P.M. during which contingency is
eliminated, determination of best bid is made, and ties are broken;
-    evaluation period ends and award posting if no match required at 2 P.M.;
-    match or award is communicated by 2 P.M.;
-    match response by 2:30 P.M.;
-    where match required, award posting by 3 P.M.;
-    contract issued within one hour of award posting (with a new contract
number, when applicable); Nomination possible beginning at the next available
nomination cycle for the effective date of the contract (Central Clock Time).

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 348 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
   
In accordance with WGQ Standard 5.3.2, Version 1.7, for non-biddable releases:
Timely Cycle
-    posting of pre-arranged deals not subject to bid are due by 10:30
     A.M.;
-    contract issued within one hour of award posting (with a new contract
     number, when applicable);  nomination possible beginning at the next
     available nomination cycle for the effective date of the contract
     (Central Clock Time)
Evening Cycle
-    posting of prearranged deals not subject to bid are due by 5:00 P.M;
-    contract issued within one hour of award posting (with a new contract
     number, when applicable); nomination possible beginning at the next
     available nomination cycle for the effective date of the contract
     (Central Clock Time)
Intraday 1 Cycle
-    posting of prearranged deals not subject to bid are due by 9:00 A.M.;
-    contact issued within one hour of award posting (with a new contract
     number, when applicable); nomination possible beginning at the next
     available nomination cycle for the effective date of the contract.
     (Central Clock Time).
Intraday 2 Cycle
-    posting of prearranged deals not subject to bid are due by 4:00 P.M.;
-    contact issued within one hour of award posting (with a new contract
     number, when applicable); nomination possible beginning at the next
     available nomination cycle for the effective date of the contract.
     (Central Clock Time).

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 349 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 349
  
Second Revised Volume No. 1
  
  
  
  


  
 GENERAL TERMS AND CONDITIONS (Continued)


 

(b) For all releases with a term of one year or less, and for releases

with a term greater than one year where there is no Prearranged Replacement

Shipper, the Release Notice shall provide the following information:


 

(1) the Releasing Shipper's legal name, the number of its Gas

Transportation Contract, the phone number, the name(s) of the person(s)

entering and authorizing the release;


 

(2) the maximum and minimum quantity of firm capacity that the

Releasing Shipper elects to release stated in DTH per Day;


 

(3) the Receipt and Delivery Point(s) at which the Releasing Shipper

will release capacity and the firm capacity to be released at such points;


 

(4) whether the capacity will be released on a firm or recallable

basis, whether the recalled capacity can be reput, and the specifics of any

recall rights;


 

(5) the requested effective date and term of the release; and


 

(6) whether the Releasing Shipper is willing to release such capacity

for a shorter period of time and, if so, the minimum acceptable period of the

release;


 

(7) any minimum reservation rate including all reservation-type

surcharges or other requirements;


 

(8) whether the Releasing Shipper wishes to exclude all bidders except

those that have pre-qualified under the creditworthiness provision in Section

3.9 of this Tariff;


 

(9) the length of time (subject to the minimum and maximum posting

periods set forth in Section 11.7 herein) for which the offer to release

capacity shall be placed on Transporter's Interactive Internet Website before

Transporter closes the capacity bidding process;


 

(10) whether the Releasing Shipper requests Transporter's assistance

(other than posting information on Transporter's Interactive Internet Website)

in marketing the released capacity and, if so, the type of service desired;


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 350 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 350
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

(11) any non-discriminatory, economic criteria for evaluating bids

that the Releasing Shipper wishes Transporter to apply in place of the highest

Present Value;


 

(12) any non-discriminatory method for breaking ties that the

Releasing Shipper wishes Transporter to apply in place of the pro-rata

allocation method set forth in Section 11.9(c) herein;


 

(13) the maximum reservation rate, including any reservation-type

surcharges, that apply to the release (this subpart (13) is only applicable to

releases with a term greater than one year);


 

(14) whether the Releasing Shipper is willing to accept contingent

bids and, if so, the terms on which such bids will be evaluated, the time

period in which the Successful Bidder must remove the contingency, and

whether, or for what time period, the next highest bidder would be obligated

to acquire the capacity should the winning contingent bidder exercise its

option not to take the capacity;


 

(15) whether the Releasing Shipper will accept bids on a volumetric or

one-part basis, and, if so, how it will evaluate and compare volumetric or

one-part bids with other bids;


 

(16) the date and time the Release Notice is posted on Transporter's

Interactive Internet Website; and


 

(17) any other special conditions for the release.


 

(c) If a Releasing Shipper has a Prearranged Replacement Shipper willing to

acquire released capacity for a term greater than one year at a rate less than

the maximum rate Transporter is authorized to charge, the Releasing Shipper's

Release Notice of such prearrangement shall set forth the following

information:


 

(1) the Releasing Shipper's legal name and DUNS number, the number of

its Gas Transportation Contract, the phone number, fax number, e-mail address

and the name(s) of the person(s) entering and authorizing the release;


 

(2) the legal name and DUNS number of the Prearranged Replacement

Shipper, the phone number, fax number, e-mail address and name(s) of the

contact person(s) for the Prearranged Replacement Shipper, and an indication

of whether the Prearranged Replacement Shipper is an affiliate of the

Releasing Shipper;


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 351 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (3) the maximum and minimum quantity of firm capacity, which the
Releasing Shipper elects to release stated in DTH per Day;
   
        (4) the Receipt and Delivery Point(s) at which the Releasing Shipper
will release capacity and the firm capacity to be released at such points;
   
        (5) whether the capacity will be released on a firm or recallable
basis, whether the recalled capacity can be reput and, the specifics of any
recall rights;
   
        (6) the requested effective date and term of the release;
   
        (7) the reservation rate the Prearranged Replacement Shipper has
agreed to pay, including any reservation-type surcharges, for the released
capacity;
   
        (8) the length of time (subject to the minimum and maximum posting
periods set forth in Section 11.7 herein) for which the offer to release
capacity shall be placed on Transporters Interactive Internet Website before
Transporter closes the capacity bidding process;
   
        (9) any non-discriminatory, economic criteria for evaluating bids that
the Releasing Shipper wishes Transporter to apply in place of the highest
Present Value;
   
        (10) any non-discriminatory method for breaking ties that the
Releasing Shipper wishes Transporter to apply in place of the pro-rata
allocation method set forth in Section 11.9(c) herein;
   
        (11) the maximum reservation rate, including any reservation-type
surcharges, that can be charged for the release;
   
        (12) whether the Releasing Shipper is willing to accept contingent
bids and, if so, the terms on which such bids will be evaluated, the time
period in which the Successful Bidder must remove the contingency, and
whether, or for what time period, the next highest bidder would be obligated
to acquire the capacity should the winning contingent bidder exercise its
option not to take the capacity;
   
        (13) whether the Releasing Shipper will accept bids on a volumetric or
one-part basis, and, if so, how it will evaluate and compare volumetric or
one-part bids with other bids;

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 352 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (14) the date and time the Release Notice is posted on Transporters
Interactive Internet Website; and
   
        (15) all other relevant terms of the prearranged release.
   
        (d)  The Releasing Shipper may withdraw a Release Notice during the
bid period, where unanticipated circumstances justify and no minimum bid has
been made.  Where Transporter has determined that the Release Notice contains
no deficiencies, once the bidding period closes, the Release Notice shall
constitute a binding offer to release capacity to a Successful Bidder(s) whose
bid satisfies all the minimum terms specified in the Release Notice.
   
        11.7 Posting of Releasing Shippers Election to Release Capacity.  All
complete Release Notices submitted via Transporters electronic bulletin board
or EDI pursuant to Section 11.6 herein shall be posted on the Interactive
Internet Website as soon as they are submitted unless otherwise indicated by
Releasing Shipper, provided, however, that the names of Pre-Arranged
Replacement Shippers shall not be posted by Transporter during the bidding
period, and Transporter shall begin accepting bids immediately.  Upon
Transporters receipt of a Release Notice, Transporter shall evaluate the
notice to determine whether it satisfies the terms of this Section and shall
notify the Releasing Shipper of any deficiencies within a minimum period of
four (4) hours during one (1) or more Business Days.  If there are no
deficiencies, Transporter shall indicate the fact that the Release Notice
contains no deficiencies on its Interactive Internet Website.  If there are
deficiencies, Transporter shall promptly notify the Releasing Shipper of the
deficiencies and the Releasing Shipper may at any time thereafter submit a
revised Release Notice.  Following Transporters determination that a Release
Notice or revised Release Notice contains no deficiencies, all information
relevant to the release shall remain on Transporters Interactive Internet
Website and available for bidding in accordance with the timeline specified in
Section 11.6(a).  All offers to release capacity by the Releasing Shipper
shall be binding unless withdrawn in writing or electronically via 
Transporters Interactive Internet Website or EDI.
   
        11.8 Bidding Procedure.  Immediately upon the posting of a Release
Notice on Transporters Interactive Internet Website, Transporter shall begin
receiving bids for such capacity from potential Replacement Shippers.  All
Shippers that wish to bid on such released capacity must notify Transporter
via Transporters Interactive Internet Website or via EDI.  All bids submitted
shall be posted on the Interactive Internet Website as soon as they are
submitted; provided, however, that the names of bidders shall not be posted by
Transporter during the bidding period.  Any bids received must provide the
following information:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 353 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (a) the bidders legal name, the phone number, and the name of the
person entering the bid;
   
        (b) the Releasing Shippers legal name, and the number of the Gas
Transportation Contract under which bidder desires to acquire released
capacity;
   
        (c) the capacity which the bidder wishes to acquire, stated in DTH;
   
        (d) the Receipt and Delivery Points at which the bidder desires
service;
   
        (e) the term of the acquisition;
   
        (f) the maximum rate bidder is willing to pay for the capacity;
   
        (g) whether the bidder is willing to accept less than the full amount
f capacity released in the event that there are two or more Successful Bidders
and Transporter must pro-rate the capacity in accordance with Section 11.9(c)
below; and
   
        (h) any other terms that may be relevant.
   
        A bidder may withdraw its bid during the bidding period, and may
submit a higher bid during the bidding period, but may not submit a lower bid.
Once a potential Replacement Shipper has submitted a bid, that bid shall be
binding until Transporter receives a written notice or electronic notice of
withdrawal.  Once the bidding period closes, any bid posted on Transporters
Interactive Internet Website shall constitute a binding offer to enter into a
Gas Transportation Contract for firm service, subject only to the Releasing
Shippers decision to accept a contingent bid.  The bid shall be binding
until:  Transporter selects the Successful Bidder(s); Transporter determines
that no bids satisfy the minimum terms specified in the release Notice; or the
time specified by the Releasing Shipper in its Release Notice when it provides
for accepting contingent bids.
   
        11.9 Allocation of Released Capacity -- Transporters Criteria. Unless
the Releasing Shipper specifies different criteria for evaluating bids in its
Release Notice in accordance with the provisions of Section 11.6 herein,
release capacity will be allocated on a non-discriminatory basis consistent
with the following principles:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 354 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 354
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

(a) Prearranged Replacement Shipper. If, at the same time it provides its

Release Notice to Transporter, the Releasing Shipper provides Transporter with

notice of a prearranged agreement with a prospective Prearranged Replacement

Shipper, Transporter will post notice of that arrangement on its Interactive

Internet Website in accordance with the provisions of Section 11.7 herein. In

accordance with the timeline specified in Section 11.6, Transporter shall

evaluate all bids that satisfy the minimum terms of the Release Notice as

follows:


 

(1) For releases with a term greater than one year, if the Prearranged

Replacement Shipper's bid is the highest Present Value, rate, or net revenue,

the bid methodology to be chosen by the Replacement Shipper, up to the maximum

Recourse Reservation charge that Transporter is authorized to charge the

Releasing Shipper, then Transporter shall select the Prearranged Replacement

Shipper as the Successful Bidder.


 

(2) For releases with a term of one year or less, if the Prearranged

Replacement Shipper's bid is the highest Present Value, rate, or net revenue,

the bid methodology to be chosen by the Replacement Shipper, then Transporter

shall select the Prearranged Replacement Shipper as the Successful Bidder.


 

In either case, if a "better offer" (i.e., an offer that meets all other

minimum terms of the Release Notice while providing a higher Present Value,

rate, or net revenue, the bid methodology to be chosen by the Replacement

Shipper, up to the maximum Recourse Rate reservation charge Transporter is

authorized to charge for releases with a term greater than one year, or, for

releases with a term of one year or less, a higher rate) is received,

Transporter shall post the better offer on its Interactive Internet Website,

and the Prearranged Replacement Shipper shall have the opportunity to match

that offer, in accordance with the timeline specified in Section 11.6. If the

Prearranged Replacement Shipper matches the better offer, then Transporter

shall select the Prearranged Replacement Shipper as the Successful Bidder.

For releases with a term greater than one year, the Prearranged Replacement

Shipper shall not be required to pay a rate higher than the maximum applicable

Recourse Rate.


 

If the Prearranged Replacement Shipper does not match the better offer,

Transporter shall select the bidder(s) that made the better offer as the

Successful Bidder(s). If two or more bidders made the same better offer, then

the capacity will be prorated in the manner described in Section 11.9(c)

herein.


 

(b) No Prearranged Replacement Shipper. If Transporter receives notice of a

Releasing Shipper's election to release capacity, without receiving notice of

a Prearranged Replacement Shipper, Transporter shall post that notice on its

Interactive Internet Website in accordance with the provisions of Section 11.7

herein. Within one (1) Business Day of the end of the bidding period,

Transporter shall evaluate all bids that satisfy the minimum terms of the

Release Notice. The bid providing the highest Present Value, rate, or net

revenue, the bid methodology to be chosen by the Replacement Shipper, up to

the maximum Recourse Rate reservation charge that Transporter is authorized to

charge for releases with a term greater than one year only, or, a higher rate

for capacity releases with terms of one year or less, while meeting all other

minimum terms of the Release Notice, will be selected as the best bid. If two

or more bidders made bids that provide the same highest Present Value, then

the capacity will be prorated in the manner described in Section 11.9(c)

herein.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 355 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 355
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

(c) Two or More Bids with the Same Highest Present Value, Rate, or Net

Revenue. In the event two or more bids provide the same highest present

value, rate, or net revenue, the bid methodology to be chosen by the

Replacement Shipper, the Releasing Shipper has not specified a different

method for breaking ties, and none of those successful bids states that the

bidder is unwilling to accept proration of the released capacity in the event

of a tie, the capacity released will be prorated among the Successful Bidders

as follows:


 

(1) If all successful bids are for the full amount of released

capacity, the released capacity will be allocated pro-rata to the Successful

Bidders; and


 

(2) If any or all successful bids are for less than the full amount of

released capacity, then the released capacity will be awarded, best bid first,

until all offered capacity is awarded, conditioned upon the bids meeting the

minimum terms of the Release Notice.


 

In the event that any Successful Bidder has stated in its bid that it is

unwilling to accept a prorated part of the release capacity in the event of a

tie; or fails to satisfy the criteria set forth in Section 11.11 herein; then

the uncommitted capacity will be allocated to the other Successful Bidder(s)

in accordance with the applicable proration procedures.


 

(d) Failure to Execute a Gas Transportation Contract for Firm Service. In the

event the Successful Bidder fails to execute a Gas Transportation Contract for

firm service within the time frame set forth in Section 11.12, and the

Releasing Shipper does not at that time withdraw the Release Notice,

Transporter will offer the released capacity to the bidder(s) who submitted

the next highest bid(s) in accordance with the criteria specified in Section

11.9 or 11.10 herein, while meeting all other minimum terms of the Release

Notice.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 356 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        11.10 Allocation of Released Capacity -- Releasing Shippers Criteria.
When the Releasing Shippers criteria for evaluating bids or breaking ties are
used in place of the bid evaluation or tie-breaking procedures specified in
Section 11.9, Transporter shall use Releasing Shippers criteria to evaluate
and rank all bids and will select the Successful Bidder.
   
        11.11 Criteria for Transporters Tender of a Gas Transportation
Contract. All Successful Bidders shall be subject to the credit evaluation
procedures provided in Section 3 of this Tariff.  Transporter shall have no
obligation to make available a Gas Transportation Contract to a Successful
Bidder unless the Transporter has verified the creditworthiness of such bidder
in accordance with the provisions of Section 3.  Transporter shall verify the
creditworthiness of a Successful Bidder within one (1) Business Day of receipt
of all information required by Section 3.4 of this Tariff.  In the event that
information about the Successful Bidders credit is not available within eight
(8) hours of its selection as the Successful Bidder, and the Releasing Shipper
does not at that time withdraw the Releasing Notice, Transporter will offer
the released capacity to the bidder(s) who submitted the next highest bid(s)
in accordance with the criteria specified in Sections 11.9 or 11.10 herein
while meeting all other minimum terms of the Release Notice.
   
        11.12 Procedure upon Selection of Successful Bidder(s).  In accordance
with the timeline specified in Section 11.6, Transporter shall
   
            (a) notify the Releasing Shipper of the Successful Bidder(s);
   
            (b) post the successful bid(s), including the name of the
Successful Bidder, on its Interactive Internet Website; and
   
            (c) if applicable, verify the creditworthiness of the Successful
Bidder(s) in accordance with the provisions of Sections 11.3 and 11.11 herein.
   
        As soon as the criteria for Transporters tender of a Gas
Transportation Contract to a Successful Bidder are satisfied in accordance
with the provisions of Section 11.11 herein, Transporter shall make available
a Gas Transportation Contract to the Successful Bidder(s) and a Capacity
Release Agreement to the Releasing Shipper.  The Releasing Shipper and the
Successful Bidder(s) shall then have two (2) Business Days to execute such
agreements.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 357 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 357
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

11.13 Offers to Assume or Acquire Capacity. Any Shipper that wishes to assume

or acquire capacity on the System may request Transporter to post a notice of

its offer to acquire capacity on Transporter's Interactive Internet Website.

The offering Shipper shall provide Transporter with the following information

about its offer to purchase capacity:


 

(a) the offering Shipper's legal name;


 

(b) the amount of firm Daily capacity sought stated in DTH;


 

(c) the Receipt and Delivery Point(s) desired;


 

(d) the proposed effective date and term of the proposed capacity release

transaction;


 

(e) the maximum rate acceptable;


 

(f) the length of time the Notice should remain on Transporter's Interactive

Internet Website; and


 

(g) any other relevant terms.


 

Within one (1) Business Day, Transporter shall determine whether the offer to

acquire capacity is consistent with the terms of this Tariff and Transporter's

Gas Transportation Contracts, and, if there are no deficiencies, shall post

notice of the offer to acquire capacity on its electronic bulletin board for

the length of time specified by the offering Shipper, up to a maximum of eight

(8) weeks. If this notice results in an agreement to assign capacity, the

provisions of this Section relating to capacity releases to Prearranged

Replacement Shippers shall apply.


 

11.14 Rates.


 

(a) The rate charged for any released firm capacity with a release term of

greater than one year shall be the rate set forth in the Gas Transportation

Contract entered into between Transporter and the Replacement Shipper, but in

no event more than the sum of Transporter's currently effective maximum

Recourse Rate reservation charge and usage charge under the applicable Rate

Schedule plus any fees and/or charges that would have been paid by Releasing

Shipper.


 

(b) The rate charged for any released firm capacity with a release term of one

year or less shall be the rate set forth in the Gas Transportation Contract

entered into between Transporter and the Replacement Shipper. No rate

limitation shall apply to any capacity releases with terms of one year or

less.


 

(c) A Replacement Shipper will not be charged for any


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Substitute First Revised Sheet No. 358 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 358
  
Second Revised Volume No. 1
  
  
  
  


  
GENERAL TERMS AND CONDITIONS (Continued)


 

marketing fee assessed in relation to the released capacity.


 

(d) Unless Transporter agrees in writing otherwise, the Releasing Shipper

shall remain liable for the maximum reservation charge(s), any other fixed

charges associated with the released capacity and any late charges resulting

from the Replacement Shipper's failure to pay Replacement Reservation

Charge(s).


 

(e) Bidders may bid for released firm capacity by submitting bids up to: (1)

the maximum Recourse Rate reservation charge under the applicable Rate

Schedule for release terms of greater than one year; or (2) any rate for

capacity releases of one year or less, plus any fees and/or charges that would

have been paid by Releasing Shipper.


 

11.15 Fees.

When a Releasing Shipper reaches an agreement with Transporter to actively

market its released capacity (beyond simply posting release information on

Transporter's Interactive Internet Website), the Releasing Shipper shall pay

the fee for such service negotiated by Transporter and Releasing Shipper.


 

11.16 Replacement Shipper Billing and Payment. Transporter shall directly

bill the Replacement Shipper for the released capacity it has acquired and for

any other applicable charges in accordance with this Section. The Replacement

Shipper shall pay the billed amounts directly to Transporter in accordance

with the General Terms and Conditions (including Section 15.4 herein), and in

accordance with its Gas Transportation Contract.


 

11.17 Releasing Shipper Crediting and Billing.


 

(a) Crediting. At the same time Transporter bills the Replacement Shipper

pursuant to Section 11.16 herein, the Releasing Shipper shall receive a credit

representing the reservation charge billed to the Replacement Shipper, minus

all applicable fees described in Section 11.15 herein.


 

(b) Delinquency of Replacement Shipper. In the event the Replacement Shipper

fails to pay its bill by the date payment is due:


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 359 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        (1) Transporter shall notify the Releasing Shipper of the delinquency
within five (5) Business Days after payment is due; and
   
        (2) If Replacement Shipper does not pay Transporter the amount billed
within thirty (30) Days of the original billing date, the Releasing Shippers
previously granted credit shall be reversed.  If a credit is reversed,
interest shall be calculated in accordance with Section 154.501(d) of the
FERCs Regulations, and charged to the Releasing Shipper on the amount of the
credit received from the date due until paid by the Releasing Shipper.
   
        11.18 Other Obligations of Releasing Shipper.  Where capacity has been
released for the entire remaining term of a Releasing Shippers Gas
Transportation Contract, the Releasing Shipper may request Transporter to
amend its Gas Transportation Contract to reflect that release of capacity.
Unless Transporter agrees in writing to such an amendment, which may be
conditioned on exit fees or other terms and conditions, the Releasing Shipper
shall remain bound by and liable for payment of the reservation charge(s)
applicable to the released capacity.  In the event that the Replacement
Shipper(s) fails to pay any or all of the amount of its Replacement
Reservation Charge(s) in a timely manner, all the terms of Section 15.4 herein
with regard to nonpayment shall apply; provided, however, that Transporter and
any Shipper may, in connection with their agreement to a negotiated rate under
a firm transportation rate schedule, agree upon Releasing Shipper payment
obligations and procedures and crediting mechanisms in the event of a capacity
release that vary from or are in addition to those set forth in this Section
and in Section 11.14 herein.  In no event, shall any remedy under Section 15.4
relieve the Releasing Shipper from its obligations under its Gas
Transportation Contract for firm service or this Tariff.  In no event shall
the fact that Transporter has followed the credit evaluation procedures
provided in Section 3 herein release the Releasing Shipper from its
obligations to pay the reservation charge(s) or its equivalent if a negotiated
rate(s) is applicable to the released capacity.
   
        11.19 Priority of Released Capacity.  Capacity released under the
terms of this Section shall have the same priority as the capacity held by the
Releasing Shipper under its original Gas Transportation Contract, which shall
include the right to Secondary Receipt and Delivery Points set forth in
Section 9 herein.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 360 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
11.20 Recall of Capacity.
In accordance with WGQ Standard 5.3.44, Version 1.7, Transporter supports the
following recall notification periods for all released capacity subject to
recall rights.
   
(i) Timely Recall Notification:
(a) A Releasing Shipper recalling capacity should provide notice of such
recall to the Transporter and the first Replacement Shipper no later than 8:00
a.m. on the day that Timely Nominations are due;
(b) The Transporter should provide notification of such recall to all affected
Replacement Shippers no later than 9:00 a.m. on the day that Timely
Nominations are due (Central Clock Time);
   
(ii) Early Evening Recall Notification:
(a) A Releasing Shipper recalling capacity should provide notice of such
recall to the Transporter and the first Replacement Shipper no later than 3:00
p.m. on the day that Evening Nominations are due;
(b) The Transporter should provide notification of such recall to all affected
Replacement Shippers no later than 4:00 p.m. on the day that Evening
Nominations are due (Central Clock Time);

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 361 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
(iii) Evening Recall Notification:
(a) A Releasing Shipper recalling capacity should provide notice of such
recall to the Transporter and the first Replacement Shipper no later than 5:00
p.m. on the day that Evening Nominations are due;
(b) The Transporter should provide notification of such recall to all affected
Replacement Shippers no later than 6:00 p.m. on the day that Evening
Nominations are due (Central Clock Time);
   
(iv) Intraday 1 Recall Notification:
(a) A Releasing Shipper recalling capacity should provide notice of such
recall to the Transporter and the first Replacement Shipper no later than 7:00
a.m. on the day that Intraday 1 Nominations are due;
(b) The Transporter should provide notification of such recall to all affected
Replacement Shippers no later than 8:00 a.m. on the day that Intraday 1
Nominations are due (Central Clock Time); and
   
(v) Intraday 2 Recall Notification:
(a) A Releasing Shipper recalling capacity should provide notice of such
recall to the Transporter and the first Replacement Shipper no later than 2:30
p.m. on the day that Intraday 2 Nominations are due;
(b) The Transporter should provide notification of such recall to all affected
Replacement Shippers no later than 3:30 p.m. on the day that Intraday 2
Nominations are due (Central Clock Time).
   
The recall notice provided by the Releasing Shipper must state the quantity to
be recalled expressed in terms of the adjusted total released capacity
entitlements based upon the Elapsed Prorata Capacity.
   
   
11.22 Reput of Capacity
In accordance with WGQ Standard 5.3.7, Version 1.7, capacity that has been
recalled by the Releasing Shipper may be reput to the Replacement Shipper.  A
Releasing Shipper must notify Transporter of the capacity reput by 8:00 a.m.
CCT on the day the reput is to be effective.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 362 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
11A. SEGMENTED CAPACITY


 

A Shipper may segment its capacity into separate parts for its own use

or for the purpose of releasing that capacity to Replacement Shippers.

Transporter shall not have the obligation to schedule Shipper's firm capacity

in segments if, in Transporter's discretion, scheduling such segments (whether

such segments be on the mainline or on a lateral) will: (a) impair the safe

operation of Transporter's system,(b) impair Transporter's ability to provide

reliable service to any Shipper, or (c) result in the combined nominations of

Releasing Shipper and any Replacement Shipper who has obtained all or a

portion of Releasing Shipper's capacity through capacity release to exceed

Releasing Shipper's MDQ for the contract with Transporter on any segment of

capacity (but Transporter will schedule overlapping segmented capacity

nominations when the releasing shippers' MDQ for that overlapping segment is

not exceeded). A Shipper's segmented transactions may consist of a forwardhaul

up to the Shipper's MDQ and a backhaul up to Shipper's MDQ to the same point

at the same time.


 

Unless Releasing Shipper and its Replacement Shipper agree otherwise, if

Releasing Shipper and its Replacement Shipper do submit combined nominations

that exceed Releasing Shipper's MDQ for the contract with Transporter on any

segment of capacity, then Releasing Shipper's nomination shall be scheduled

first by Transporter up to the level of Releasing Shipper's MDQ, and the

remaining segmented capacity, if any, shall be available for scheduling

Replacement Shipper's nomination.


 

If Transporter does deny a Shipper's request for scheduling use of

segmented capacity, Transporter must provide Shipper with an explanation of

the reasons for the denial within 24 hours.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 363 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
12.  PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL
   
      12.1 Notice of Contract Expiration. For each firm Gas Transportation
Contract of one year duration or longer at the maximum rate, Transporter
shall, six (6) Months prior to the expiration of the contract, or as soon as
possible after an earlier termination, post notice of the expiration on its
Interactive Internet Website and solicit bids for the capacity represented by
the Gas Transportation Contract. Such notice shall be displayed on the
bulletin board no less than one (1) Month. Transporter may require bidders to
make assurances that offers are bona fide by making cash deposits or posting
bonds or letters of credit.
   
      12.2 Abandonment of Transportation Service. Subject to the terms of this
Section 12, Transporter shall be entitled to abandon long-term (greater than
twelve (12) Months) firm transportation service, as authorized by Section
284.221(d) of the Commissions Regulations, upon the termination, or the
expiration of the term (including the expiration of any applicable contract
extension provisions), of a long-term firm Gas Transportation Contract, and
Transporter shall seek offers from competing Shippers interested in receiving
such firm transportation service. If termination is caused by a failure of
Shipper to perform any of the material covenants or obligations imposed upon
it by the Gas Transportation Contract, Transporter shall be entitled to
abandon service immediately upon termination.
   
      12.3 Right of First Refusal. Transporter shall not be required to accept
any bid at less than Transporters maximum Recourse Rate. If Transporter
receives no bids, or if Transporter receives no bids at its maximum Recourse
Rate and Transporter determines not to accept any bids below the maximum
Recourse Rate, Transporter shall notify the Shipper of the maximum bid
received, or that no bids were received. If Transporter receives a bid at a
maximum Recourse Rate, or if it accepts any bid below the maximum Recourse
Rate, Transporter shall, no less than four (4) Months before the expiration of
the Shippers firm Gas Transportation Contract, or no more than four (4)
Months after an earlier termination, inform Shipper of the offer to purchase
capacity solicited pursuant to Section 12.1 herein that Transporter intends to
accept.  Transporters

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 364 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
selection shall be made on a basis that is not unduly discriminatory. Shipper
shall have thirty (30) Days to match the offer in terms of price, quantity and
duration; provided, however, that Shipper shall not be required to pay any
rate higher than the maximum applicable Recourse Rate.  If the Shipper fails
to match the offer presented by Transporter, Transporter shall enter into a
firm Gas Transportation Contract with the person submitting the competing
offer pursuant to the terms and conditions of the offer.
   
        12.4 Iteration.  Transporter shall post any matched offer below the
maximum Recourse Rate on its Interactive Internet Website for an additional
thirty (30) Days, during which time bids may be submitted at a higher price.
Shipper again will be given an opportunity to match any higher bid.  This
process will iterate until either the Shipper has agreed to pay Transporters
maximum Recourse Rate, the Shipper fails to match an offer, or no higher bid
is submitted.
   
        12.5 Renegotiation.  If no bids are submitted at the maximum Recourse
Rate and Transporter refuses to accept a lower bid, or if no competing offers
are submitted, Transporter may abandon service to Shipper unless Shipper
agrees to pay the maximum Recourse Rate for a period of one Year and one Day,
or if Transporter and Shipper negotiate the terms and conditions of a Gas
Transportation Contract extension.
   
        12.6 Effective Rate During Renegotiation.  If, at the expiration of
Shippers Gas Transportation Contract, the iterative process of Section 12.4
is still in process or Shipper and Transporter are negotiating the terms of a
new Gas Transportation Contract pursuant to Section 12.5, then Transporter
shall continue to provide firm transportation service to Shipper pursuant to
the terms and conditions, including the pricing terms, of the expired Gas
Transportation Contract.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 365 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
13.   INTERACTIVE INTERNET WEBSITE
   
      13.1  Interactive Internet Website. Transporter has established an
Interactive Internet Website (formerly, an electronic bulletin board) to
publicize information concerning its services and available transportation
capacity. Transporters Interactive Internet Website is available on a non-
discriminatory basis for use by persons that have compatible equipment for
electronic transmission of data. Transporters Interactive Internet Website
shall contain at a minimum information regarding:
   
      (a) the unsubscribed capacity available on the System for firm and
interruptible transportation, including capacity availability on the mainline
and at Receipt Points and Delivery Points;
   
      (b) the operationally available capacity on the System for firm and
interruptible transportation, including capacity availability on the mainline
and at Receipt Points and Delivery Points;
   
      (c) the master Receipt Point list and the master Delivery Point list
including for each the following:
            (i)   Designation of Delivery or Receipt Point;
            (ii)  Location of Delivery or Receipt Point;
            (iii) Operator name and phone number; and
            (iv)  Total firm capacity subscribed at the Delivery or Receipt
                  Point;
   
      (d) the Capacity Release information described in Section 11 herein;
   
      (e) standards of conduct information under Order No. 497;
   
      (f) offers to purchase released transportation rights from firm
Shippers;
   
      (g) FERC Order No. 566 Affiliated Marketer Information - Offers of
discount rates to marketing affiliates of Transporter and procedures for 
similarly-situated non-affiliates to obtain comparable discounts;

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 366 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
      (h) Index of Customers;
   
      (i) Transporters currently effective FERC Gas Tariff and General Terms
and Conditions;
   
      (j) critical Notices (when operational);
   
      (k) the following information for each transportation contract between
Transporter and any marketing affiliate of Transporter executed during the
previous three years:
   
            (i)   the name of the Shipper;
            (ii)  its affiliation with Transporter;
            (iii) the contract number; and
            (iv)  the date on which such Shipper requested service pursuant
                  to this tariff; and
   
      (l) notice of Shippers monthly Measurement Variance Factor. These
notices will be available for download in RTF and HTML format.
   
      13.2 Features of the Interactive Internet Website. Transporter shall
update the information on its Interactive Internet Website as frequently as
necessary, but shall not be obligated to provide updates more frequently than
once per Day. Transporters Interactive Internet Website is menu-driven and
incorporates search functions, an on-line help feature and the capability for
users to download information. The Interactive Internet Website displays the
most recent information ahead of less current data. Information from completed
transactions shall be purged from current files regularly. Transporter shall
cause Daily back-up records of the information displayed on the Interactive
Internet Website to be retained and will make provisions for such records to
be available for review upon request, for up to three Years. Persons who wish
to utilize the Interactive Internet Website, to comment on the Interactive
Internet Website, or to make inquiries about the information posted on the
Interactive Internet Website, should contact Transporter at the address below
to obtain detailed access and log-on information:
   
            Portland Natural Gas Transmission System
            One Harbour Place
            Portsmouth, New Hampshire 03801

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 367 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
      13.3 Accuracy of Information. Transporter shall use reasonable efforts
to ensure the accuracy of information presented on the Interactive Internet
Website; however, Transporter makes no representation or warranty of any kind
to any person concerning the use of Transporters Interactive Internet
Website, including, without limitation, the accuracy of any posted
information, and shall not be liable to any person for damages, including
without limitation any special, incidental, or consequential damages which may
arise in connection with Transporters, or any third partys, posting of
information on the Interactive Internet Website, or as a result of any
persons use, abuse or misuse of Transporters Interactive Internet Website.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

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

  
Second Revised Volume No. 1
  
  
  
  


  
                   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
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 369 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
15.  BILLINGS AND PAYMENTS
   
        15.1 Monthly Billing Date.  Transporter shall render bills on or
before the seventh (7th) Day of each Month for all amounts due from Shipper
for the preceding Month in a statement for such Month according to the
measurement, computations and charges provided in this Tariff and the Gas
Transportation Contract(s).
   
        15.2 Monthly Payment Date.  Shipper shall pay Transporter, at a bank
designated by Transporter, so that payment is received and Transporter has
available funds there from on or before the twentieth (20th) Day of each
Month, the full amount billed by Transporter to Shipper under Section 15.1 for
the immediately preceding Month.  Such payment shall not be considered overdue
if the twentieth (20th) Day of the Month is a Saturday, Sunday, or national
holiday, and Transporter receives payment on the next Business Day.
   
        15.3 Estimated Statement.  If for any reason Transporter is unable to
render a statement on or before the seventh (7th) Day of a Month, Transporter
may at its option render an estimated statement to Shipper, which statement
shall contain Transporters best estimate of the total amount payable to
Transporter by Shipper under the Gas Transportation Contract(s) for the
preceding Month.  Shipper shall pay to Transporter the full amount of such
estimated statement within thirteen (13) Days of its receipt; provided,
however, that Transporter shall render to Shipper a final statement no later
than the fifteenth (15th) Day of the Month in which such estimated statement
is rendered, unless Transporters failure to do so is due to the fault of
Shipper, in which case Transporter shall render to Shipper a final statement
which shall be added to or deducted from, as appropriate, Transporters next
succeeding Monthly statement to Shipper.
   
        15.4 Remedies For Nonpayment.
   
        (a) Charge for Late Payment.  Should Shipper fail to pay any or all of
the amount of any bill as herein provided when such amount is due, Shipper
shall pay a charge for late payment which shall be included by Transporter on
the next regular Monthly bill rendered to Shipper.  Such charge for late
payment shall be determined by multiplying:
   
               (1) the unpaid portion of the bill; by
   
               (2) the ratio of the number of Days payment is overdue to 365;
by

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 370 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
               (3) the applicable rate of interest calculated in accordance
with Section 154.501(d) of the FERCs Regulations.
   
        (b) Suspension of Service.  If such failure to pay continues for
thirty (30) Days after payment is due, Transporter, in addition to any other
remedy it may have under the Gas Transportation Contract, may:
   
               (1) discontinue service for self-implementing transactions
without FERC approval; and/or
   
               (2) after any required application to and authorization by the
FERC, suspend further transportation of Gas until such amount is paid.
   
        (c)  Termination of Contract.  If such default continues for thirty
(30) additional Days, Transporter may thereafter, in addition to any other
remedy it may have under the Gas Transportation Contract, terminate said
Contract in accordance with the provisions of Section 20.6 herein.
   
15.5 Disputed Bills.
   
        (a) If Shipper in good faith disputes the amount of any bill or part
thereof and pays to Transporter such amounts as it concedes to be correct, and
at any time within thirty (30) Days after a demand made by Transporter
furnishes good and sufficient surety bond guaranteeing payment to Transporter
of the amount ultimately found due upon such bills after a final determination
which may be reached either by agreement or judgment of the courts, as may be
the case, then Transporter shall not be entitled to seek to suspend further
delivery of Gas nor terminate the Gas Transportation Contract as outlined
above unless and until default be made in the conditions of such bond.
   
        (b) In the event of a dispute concerning any billing or statement,
payment shall nevertheless be made for such amounts as it concedes to be
correct, as provided in Section 15.2 but such payment shall not be deemed to
be a waiver of any rights to recoup any amounts in dispute.  Such payment must
be accompanied by a statement of the disputed amounts, the reason for the
dispute and the amounts not in dispute.  Any billing or statement of volumes
or allocations tendered pursuant to this Section 15, or the measurement data
associated therewith, shall be disputed, if at all, within six (6) months from
the end of the month for which such billing or statement has been rendered,
otherwise such billing or statement and associated measurement data shall be
conclusively deemed to be correct.  This restriction does not apply in the
event of a deliberate

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 371 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
misrepresentation or omission or mutual mistake of fact.  The responding party
to such dispute shall provide any rebuttal claims to the other party within
three months of receipt of notice of dispute.  Parties other statutory or
contractual rights shall not otherwise be diminished by this Section 15.5.
   
        15.6 Adjustment of Bills.  If it is determined that at any time or
times Shipper has been overcharged or undercharged under the provisions of the
Gas Transportation Contract and Shipper has actually paid the bills containing
such overcharge or undercharge, then within thirty (30) Days after the final
determination thereof, subject to the limitations in Section 15.5(b) above,
Transporter shall refund the amount of any such overcharge, and Shipper shall
pay the amount of any such undercharge; provided, however, that interest
calculated in accordance with Section 15.4(a) shall apply to any undercharge
not paid and to any overcharge not returned within thirty (30) Days from the
date of Transporters notification to Shipper of the amount of the undercharge
or overcharge.  In the event an error is discovered by Shipper in the amount
billed in any statement rendered by Transporter, such error shall be adjusted
within thirty (30) Days of the final determination thereof provided that claim
therefore shall have been made within six (6) months from the date of the
initial transportation invoice month and seven (7) months from date of Initial
sales invoice with a three (3) month rebuttal period in which such overcharge
or undercharge occurred except claims for government required rate changes.
Parties other statutory or contractual rights shall not otherwise be
diminished by this Section 15.6.
   
        15.7 Examination of Books.  Both Transporter and Shipper have the
right to examine at any reasonable time the books, records and charts of the
other to the extent necessary to verify the accuracy of any statement, chart, 
or computation made under or pursuant to the provisions of this Tariff or the
Gas Transportation Contract.
   
        15.8 Third Party Charges.  Shipper shall be responsible for delivering
all Gas to, and accepting redelivery of all Gas from, Transporter s system,
and shall be free to contract with third party(s) upstream or downstream of
Transporters system to achieve such result.  If Shipper requests, and
Transporter agrees, that Transporter shall, to provide service to Shipper, use
service which Transporter has contracted for with third party(s) for the
benefit of Shipper, Shipper shall pay Transporter an amount equal to the
charges Transporter is obligated to pay such third party(s), which charges may
include, but are not limited to, reservation and/or usage charges and
surcharges, fuel charges, compression fees, balancing or storage fees,
measurement fees, processing fees, and/or facility charges.  Such charges
shall be set forth as separate items on billings rendered to Shipper.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 372 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
16.  COST REIMBURSEMENTS
   
        16.1 Reimbursable Costs.  Shipper shall reimburse Transporter for the
following costs, to the extent that they are attributable to Shipper:
   
               (a) Except as provided by Section 6.2 herein, the costs of any
facilities, other than System facilities, installed by Transporter with
Shippers consent to receive, measure, transport or deliver Gas for the
account of Shipper;
   
               (b) Filing fees required in connection with the Gas
Transportation Contract(s) that Transporter is obligated to pay to the FERC or
any other governmental authority having jurisdiction, less generally
applicable regulatory fees necessary for rendition of Transporters service
generally to all customers;
   
               (c) Any and all occupation, sales tax, user fee, or taxes or
fees similar in nature or equivalent in effect which are now or hereafter
imposed or assessed against Transporter by any lawful authority as a result of
the transportation of Gas pursuant to the Gas Transportation Contract(s), and
which the FERC has determined, after a Section 4 rate filing, to be directly
assignable to the specific service to be rendered by Transporter on behalf of
Shipper thereunder; and
   
               (d) Any and all overrun costs including:
   
               (1) costs incurred by Transporter to correct the effect of any
tampering with or alteration of Transporters facilities which permitted an
overall overrun to occur at the affected Delivery Point and the costs incurred
by Transporter to repair such facilities;
   
               (2) costs incurred by Transporter to acquire additional Gas to
prevent or alleviate curtailments and to reestablish appropriate operating
pressure on its System;
   
               (3) penalties paid by Transporter to third parties; and
   
               (4) costs incurred by Transporter to collect overrun penalties.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 373 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        16.2 Costs Reimbursements Due in Ten Days.  Any reimbursement due
Transporter by Shipper pursuant to Section 16.1 shall be due and payable to
Transporter within ten (10) Days of receipt by Shipper of Transporters
invoice(s) for same.  Transporter shall give Shipper notice of any new or
changed reimbursement due under Section 16.1 (c) as soon as practicable after
such new or changed reimbursement becomes effective.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 374 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
17.  ACA CHARGE
   
        17.1 ACA Charge.  The rates set forth in the Rate Schedules shall
include a charge, adjusted from time to time, to reflect the annual charge
adjustment (ACA) assessed Transporter by the FERC pursuant to Order No. 472,
or any other superseding rule or order.
   
        17.2 Charge Ordered by FERC.  The current ACA Charge under the Rate
Schedules shall be the unit amount, adjusted as necessary for heating value
and pressure base, which the FERC orders to be effective for the fiscal Year
commencing on the effective date of the adjustment.
   
        17.3 Transporter shall retain all revenues collected under this
Section 17. Except as provided by this Section 17, Transporter shall not have
the right to seek to recover, in any proceeding under Section 4 of the Natural
Gas Act any such costs recorded in its FERC Account No. 928.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 375 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
18.  WARRANTY OF TITLE AND POSSESSION OF GAS
   
        18.1 Warranty.
   
        (a) Title to all Gas tendered to Transporter at the Receipt Point(s)
for transportation shall be held by Shipper free and clear of liens,
encumbrances and adverse claims of any kind.  Transporter hereby expressly
disclaims that it has or will have title to any Gas to be transported to or on
behalf of Shipper.
   
        (b) If Shippers title or right to deliver Gas to be transported is
questioned or involved in any action, Shipper shall not qualify for nor be
eligible to continue to receive service until such time as Shippers title or
right to deliver is free from question; provided, however, Transporter shall
allow Shipper to qualify for or continue receiving service under this Tariff
if Shipper furnishes a bond satisfactory to Transporter.
   
        18.2 Indemnification as to Warranted Gas.  Shipper shall indemnify
Transporter and save it harmless from all suits, actions, debts, accounts,
damages, costs, losses, and expenses arising from or out of claims of any or
all persons to the Gas warranted in Section 18.1, and claims of any or all
persons to royalties, taxes, license fees or charges thereon resulting from
breach of said warranty.
   
        18.3 Control and Possession.  Transporter shall be deemed to be in
control and possession of the Gas deliverable pursuant to a Gas Transportation
Contract, from the time it is received by Transporter at the Receipt Point(s)
until it shall have been made available to or for the account of Shipper at
the Delivery Point(s).  Prior to the time Gas is received by Transporter at
the Receipt Point(s) and after such Gas is made available to or for the
account of Shipper at the Delivery Point(s), Shipper shall be deemed to be in
control and possession thereof.
   
        18.4 Responsibility.
   
        (a) Shipper shall have no responsibility:
   
               (1) with respect to any Gas after it is received by Transporter
at the Receipt Point(s) until it is made available to or on behalf of Shipper
at the Delivery Point(s); or

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 376 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
               (2) on account of anything which may be done, happen or arise
with respect to such Gas after it is received by Transporter at the Receipt
Point(s) and before it is made available to or on behalf of Shipper at the
Delivery Point(s).
   
        (b) Transporter shall have no responsibility:
   
               (1) with respect to any Gas before it is received by
Transporter at the Receipt Point(s) or after it is made available to or on
behalf of Shipper at the Delivery Point(s); or
   
               (2) on account of anything which may be done, happen or arise
with respect to such Gas before it is received by Transporter at the Receipt
Point(s) and after it is made available to or on behalf of Shipper at the
Delivery Point(s).
   
        18.5 Right to Commingle.  From the time Gas is made available to
Transporter at the Receipt Point(s), Transporter shall have the unqualified
right to commingle such Gas with other Gas in the System.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 377 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
19.  INDEMNITY
   
        19.1 Indemnification. Transporter and Shipper shall each indemnify and
save harmless the other from all liability, damages, costs, losses and charges
of every character resulting from or arising out of any claim made against
such other for injury or death to persons, or damage to property, in any way
connected with the property and equipment of the indemnitor or the presence of
Gas deemed under Section 18.4 herein to be the responsibility of the
indemnitor, unless such injury, death or damage is caused by the negligence of
the indemnitee or anyone for whose actions the indemnitee is responsible in
law.
   
        19.2 Notice. Notwithstanding the provisions of Section 19.1 herein,
neither Transporter nor Shipper shall be liable to indemnify the other unless
the person requesting indemnification shall have promptly notified the other
in writing of any claim, suit or action for or in respect of which
indemnification is to be claimed.  The person receiving such notification
shall be entitled to participate in any such suit or action, and, to the
extent that it may wish, assume the defense thereof with counsel who shall be
to the reasonable satisfaction of the person requesting indemnification, and
after notice from the indemnitor to the indemnitee of its election so to
assume the defense thereof, the indemnitor will not be liable to the
indemnitee for any legal or other expenses incurred by the indemnitee in
connection with the defense thereof.
   
        19.3 Limitation of Liability. An indemnitor shall not be liable to
indemnify an indemnitee on account of any settlement of any claim, suit or
action effected without the consent of such indemnitor.
   
        19.4 Survival of Claims. Claims made under this Section 19 with
respect to injury or death to persons or damage to property occurring during
the term of a Shippers Gas Transportation Contract shall survive the
termination thereof.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 378 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
20.  LIABILITY AND REMEDIES
   
        20.1 Relief from Liability.  Neither Transporter nor Shipper shall be
liable in damages to the other for any act, omission or circumstances,
including any curtailment or interruption, occasioned by or in consequence of
any event constituting Force Majeure and, except as otherwise provided in
Section 20.2 herein, the obligations of Transporter and Shipper shall be
excused during the period thereof to the extent affected by such events of
Force Majeure. Neither Transporter nor Shipper shall be liable in any manner
to the other person for indirect, consequential or special losses or damages
including attorneys fees.  There are no intended, incidental or third-party
beneficiaries under this Tariff or any contract thereunder.
   
        20.2 Liabilities not Relieved.  Notwithstanding the provisions of
Section 20.1 herein, the party claiming a Force Majeure event with respect to
its performance under a Gas Transportation Contract:
   
               (a) shall not be relieved of its obligation to make payments of
amounts then due thereunder or its obligation to pay the applicable
reservation charge thereunder during any event constituting Force Majeure;
   
               (b) shall not be relieved of liability in the event of its
negligence, or its failure to use due diligence, in remedying the Force
Majeure situation and removing the cause in an adequate manner and with all
reasonable dispatch; and
   
               (c) shall not be relieved of liability if it fails to give
notice and a full explanation of the Force Majeure event in writing to the
other party as soon as possible after the event.
   
        20.3 Overriding Obligation to Pay Reservation Charges.  Shippers
obligation to pay applicable reservation charges under a Gas Transportation
Contract shall not be suspended by any failure of Transporter to deliver Gas
to or on behalf of Shipper for any reason or cause whatsoever, whether or not
described in this Section 20, except in the event that such failure is caused
by the negligent or intentional misconduct of Transporter.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 379 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        20.4 Reservation Charge Reimbursement.  Transporter shall be obligated
to refund reservation charges collected from firm Shippers applicable to Days
in which firm service is interrupted, only if and to the extent that
Transporter is reimbursed for such reservation charges through insurance
proceeds and such Shipper is not recompensed for such reservation charges
through any other primary insurance.  Such refunds shall be computed by
allocating to each firm Shipper for which service was interrupted a pro rata
share of the attributable insurance proceeds received by Transporter based on
the proportion that the eligible amount of each such Shippers affected
reservation charge payments bears to the sum of the eligible amounts of all
such Shippers affected reservation charge payments. The affected reservation
charge payments for each Shipper shall be computed by multiplying the
Shippers Daily applicable reservation rate by the quantity of Gas not
delivered by reason of the interruption in firm service, not to exceed such
Shippers MDQ.  The eligible amount of such affected reservation charge
payments shall be the portion of the affected reservation charge payments for
which the Shipper is not eligible to be recompensed through other primary
insurance.  For purposes of this Section 20.4, the Shippers Daily applicable
reservation rate under Rate Schedule FT shall be determined by multiplying the
reservation rate applicable to the service that was interrupted by twelve(12)
and dividing the product by 365.  Nothing herein shall obligate a firm Shipper
to maintain primary insurance which recompenses it, in whole or in part, for
reservation charges paid on Days when Transporter interrupts service.
   
        20.5 Unavailability of Capacity.  Transporter shall not be liable to
any person for any curtailment or interruption of service to Shipper due to
Force Majeure or other unforeseen circumstances; repair, maintenance, other
construction, or testing procedures necessary to maintain operational
capability on the System; and/or efforts to comply with applicable regulatory
requirements.
   
        20.6 Termination of Gas Transportation Contract.  If either
Transporter or Shipper shall fail to perform any of the material covenants or
obligations imposed upon it by the Gas Transportation Contract, subject to the
applicable provisions of this Tariff, then in such event the other party may
at its option terminate said contract and discontinue service by proceeding as
follows: the party not in default shall cause a written notice to be served on
the party in default stating specifically the cause for terminating the
contract and declaring it to be the intention of the party giving the notice
to terminate the same; thereupon the party in default shall have thirty (30)
Days after the service of the aforesaid notice in which to remedy or remove
the cause or causes stated in the notice for terminating the contract, and if
within said period of thirty (30)

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 380 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
Days the party in default does so remove and remedy said cause or causes, then
such notice shall be withdrawn and the contract shall continue in full force
and effect.  In case the party in default does not so remedy and remove the
cause or causes within said period of thirty (30) Days, the contract shall
terminate and service shall be discontinued; provided, however, that no
termination of the contract or discontinuance of service shall occur if the
party in default has initiated action to cure such material default but,
despite its best efforts, has been unable to complete cure within such thirty
(30) Day period and is continuing its action to complete cure in good faith
beyond the end of the thirty (30) Day period.  The termination or cancellation
of any Gas Transportation Contract shall be without prejudice to the right of
Transporter to collect any amounts then due to it for services rendered prior
to the time of cancellation, and shall be without prejudice to the right of
Shipper to receive any services which have not been rendered but for which
Shipper has paid prior to the time of cancellation, and without waiver of any
remedy to which the party not in default may be entitled for violations of the
contract.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 381 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
21.  SUPERVENING LAWS AND CHANGES BY THE TRANSPORTER
   
        21.1 This Tariff, including these General Terms and Conditions, and
the respective obligations of the parties under the Gas Transportation
Contract(s), are subject to valid laws, ordinances, orders, rules and
regulations of duly constituted authorities having jurisdiction and are
subject to change from time to time by addition, amendment or substitution as
provided by law.
   
        21.2 Transporter shall have the right to unilaterally file, from time
to time and in the manner provided by law, such changes in its Tariff and/or
Rate Schedules as Transporter may find necessary.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 382 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
22.  MARKETING AFFILIATE RULE
   
        22.1 This section describes Transporters compliance with the
requirements of 18 C.F.R. Section 250.16.
   
        22.2 Shared Operating Personnel and Facilities.  Transporter and its
marketing affiliates have no shared operating personnel or facilities.  Any
changes to the terms of this Section will be filed with FERC on a quarterly
basis.
   
        22.3 Complaint Resolution.  Transporter will attempt to resolve any
complaints by Shippers or potential Shippers without the necessity of a
written complaint.  To this end, Shippers are encouraged to attempt to resolve
disputes informally with their designated service representatives.  A formal
complaint concerning any services offered by Transporter must specifically
state that it is a complaint under 18 C.F.R. Section 250.16 and should be
directed, preferably in writing, to Manager, Transportation and Marketing, at
Portland Natural Gas Transmission System, One Harbour Place, Portsmouth, New
Hampshire 03801.  Transporter will respond initially to the complaint within
48 hours and in writing within thirty (30) Days.
   
        22.4 Any person desiring information on the availability, pricing or
other terms of Transporters service should contact the Transportation and
Marketing Department at Portland Natural Gas Transmission System, One Harbour
Place, Portsmouth, New Hampshire 03801.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 383 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
23.  MISCELLANEOUS
   
        23.1 Waiver of Default.  No waiver by either Transporter or Shipper of
any one or more defaults by the other in the performance of any provisions of
a Gas Transportation Contract, the General Terms and Conditions or the
applicable Rate Schedule shall operate or be construed as a waiver of any
future default or defaults, whether of a like or of a different character.
This provision shall not be interpreted as providing Transporter or Shipper
with any powers or authorizations to grant or deny waivers over and above such
powers as are provided under the FERCs regulations and Maine contract law.
   
        23.2 Assignability.  A Gas Transportation Contract shall bind and
inure to the respective successors and assigns of the parties thereto, but no
assignment shall release either party from such partys obligations without
the written consent of the other party, which consent shall not be
unreasonably withheld.  Nothing contained herein shall prevent either party
from pledging, mortgaging or assigning its rights as security for its
indebtedness and either party may assign to the pledges or mortgages (or to a
trustee for the holder of such indebtedness) any money due or to become due
under any Gas Transportation Contract.
   
        23.3 Effect of Headings.  The headings used throughout this Tariff and
in executed Gas Transportation Contracts are inserted for reference purposes
only and are not to be considered or taken into account in construing the
terms and provisions of any paragraph nor to be deemed in any way to qualify,
modify or explain the effects of any such terms or provisions.
   
        23.4 Notice.  Any communication, notice, request, demand, statement or
bill provided for in this Tariff or in a Gas Transportation Contract, or any
notice which either Transporter or Shipper may desire to give to the other,
shall be offered in writing, unless transmitted via Transporters Interactive
Internet Website, and shall be considered as duly presented, rendered, or
delivered when sent, if sent by telegram, cable, telecopy or telex; or, if
sent by express mail service, shall be considered as duly presented one Day
after mailing; or, if prepaid registered or ordinary mail, shall be considered
as duly presented five (5) Days after mailing.  The material so sent shall be
addressed to the pertinent party at its last known address.
   
        23.5 References.  When used immediately after a section number
reference in a particular document (e.g., the General Terms and Conditions) in
this Tariff, the word "herein" shall refer to a section of that same document,
irrespective of whether such cited section occurs before or after the subject
reference.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 384 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                   GENERAL TERMS AND CONDITIONS (Continued)
   
        23.6 Negotiated Rate Accounting.  Consistent with FERC directives set
forth in "Statement of Policy and Request for Comments" (74 FERC 61,076),
Transporter shall separately account for all costs and revenues that are
associated with negotiated-rate services implemented in accordance with such
FERC policy.  Transporter shall accomplish that separate accounting by using
separately designated subaccounts, as required by the facts and circumstances,
of the Uniform System of Accounts.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 385 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                           GENERAL TERMS AND CONDITIONS (Continued)
   
COMPLIANCE WITH WGQ STANDARDS
   
24.1 Compliance With WGQ Standards.  Transporter has adopted all of the Business Practices and
Electronic Communication Standards which were required by the Commission in 18 C.F.R. Section
284.12(a) in accordance with Order No. 587-S issued May 9, 2005 and subsequent related orders.  In
addition to those WGQ standards elsewhere referred to in the tariff, Transporter is incorporating
herein the following WGQ standards, definitions and data sets:
   
Version 1.7 standards, definitions and data sets incorporated by reference:
0.3.1, 0.3.2, 0.3.3, 0.3.4, 0.3.5, 0.3.6, 0.3.7, 0.3.8, 0.3.9, 0.3.10, 1.1.20, 1.1.21, 1.1.22,
1.2.2, 1.2.5, 1.2.13, 1.2.14, 1.2.15, 1.2.16, 1.2.17, 1.2.18, 1.2.19, 1.3.19, 1.3.20, 1.3.21,
1.3.23, 1.3.24, 1.3.25, 1.3.27, 1.3.29, 1.3.31, 1.3.32, 1.3.35, 1.3.36, 1.3.37, 1.3.38, 1.3.39,
1.3.40, 1.3.41, 1.3.42, 1.3.43, 1.3.44, 1.3.45, 1.3.46, 1.3.47, 1.3.48, 1.3.49, 1.3.50, 1.3.51,
1.3.52, 1.3.53, 1.3.54, 1.3.55, 1.3.56, 1.3.57, 1.3.58, 1.3.59, 1.3.60, 1.3.61, 1.3.62, 1.3.63,
1.3.64, 1.3.65, 1.3.66, 1.3.67, 1.3.68, 1.3.69, 1.3.70, 1.3.71, 1.3.72, 1.3.73, 1.3.74, 1.3.75,
1.3.76, 1.3.77, 1.3.79, 1.4.1, 1.4.2, 1.4.3, 1.4.4, 1.4.5, 1.4.6, 1.4.7, 2.2.1, 2.2.2, 2.2.3,
2.2.4, 2.2.5, 2.3.2, 2.3.4, 2.3.5, 2.3.6, 2.3.7, 2.3.9, 2.3.10, 2.3.11, 2.3.12, 2.3.13, 2.3.16,
2.3.17, 2.3.18, 2.3.19, 2.3.20, 2.3.22, 2.3.23, 2.3.25, 2.3.27, 2.3.28, 2.3.31, 2.3.32, 2.3.33,
2.3.34, 2.3.35, 2.3.40, 2.3.41, 2.3.42, 2.3.43, 2.3.44, 2.3.45, 2.3.46, 2.3.47, 2.3.48, 2.3.49,
2.3.50, 2.3.51, 2.3.52, 2.3.53, 2.3.54, 2.3.55, 2.3.56, 2.3.57, 2.3.58, 2.3.59, 2.3.60, 2.3.61,
2.3.62, 2.3.63, 2.3.64, 2.4.1, 2.4.2, 2.4.3, 2.4.4, 2.4.5, 2.4.6, 2.4.7, 2.4.8, 2.4.9, 2.4.10,
2.4.11, 2.4.12, 2.4.13, 2.4.14, 2.4.15, 2.4.16, 3.3.1, 3.3.2, 3.3.4, 3.3.5, 3.3.6, 3.3.7, 3.3.8,
3.3.9, 3.3.10, 3.3.11, 3.3.12, 3.3.13, 3.3.14, 3.3.16, 3.3.17, 3.3.18, 3.3.19, 3.3.20, 3.3.21,
3.3.22, 3.3.23, 3.3.24, 3.3.25, 3.4.1, 3.4.2, 3.4.3, 3.4.4, 4.2.2, 4.2.3, 4.2.4, 4.2.5, 4.2.6,
4.2.7, 4.2.8, 4.2.9, 4.2.10, 4.2.11, 4.2.12, 4.2.13, 4.2.14, 4.2.15, 4.2.16, 4.2.18, 4.2.19,
4.2.20, 4.3.1, 4.3.2, 4.3.3, 4.3.7, 4.3.8, 4.3.9, 4.3.10, 4.3.11, 4.3.12, 4.3.13, 4.3.14, 4.3.15,
4.3.17, 4.3.20, 4.3.24, 4.3.26, 4.3.27, 4.3.28, 4.3.29, 4.3.30, 4.3.31, 4.3,32, 4.3.33, 4.3.34,
4.3.35, 4.3.36, 4.3.37, 4.3.38, 4.3.39, 4.3.40, 4.3.41, 4.3.42, 4.3.43, 4.3.44, 4.3.45, 4.3.46,
4.3.47, 4.3.48, 4.3.49, 4.3.50, 4.3.51, 4.3.52, 4.3.53, 4.3.54, 4.3.55, 4.3.56, 4.3.57, 4.3.58,
4.3.59, 4.3.60, 4.3.61, 4.3.62, 4.3.64, 4.3.65, 4.3.66, 4.3.67, 4.3.68, 4.3.69, 4.3.70, 4.3.71,
4.3.72, 4.3.73, 4.3.74, 4.3.75, 4.3.76, 4.3.77, 4.3.78, 4.3.79, 4.3.80, 4.3.81, 4.3.82, 4.3.83,
4.3.84, 4.3.85, 4.3.88, 5.1.2, 5.1.3, 5.1.4, 5.2.1, 5.2.2, 5.2.3, 5.3.5, 5.3.7, 5.3.10, 5.3.11,
5.3.18, 5.3.20, 5.3.21, 5.3.22, 5.3.23, 5.3.25, 5.3.26, 5.3.30, 5.3.31, 5.3.32, 5.3.33, 5.3.34,
5.3.35, 5.3.36, 5.3.37, 5.3.38, 5.3.39, 5.3.40, 5.3.41, 5.3.42, 5.3.43, 5.3.45, 5.3.46, 5.3.47,
5.3.48, 5.3.50, 5.3.51, 5.3.52, 5.3.53, 5.3.54, 5.3.55, 5.3.56, 5.3.57, 5.3.58, 5.3.59, 5.3.60,
5.4.1, 5.4.2, 5.4.3, 5.4.4, 5.4.5, 5.4.6, 5.4.7, 5.4.8, 5.4.9, 5.4.10, 5.4.11, 5.4.12, 5.4.13,
5.4.14, 5.4.15, 5.4.16, 5.4.17, 5.4.18, 5.4.19, 5.4.20, 5.4.21, 5.4.22
   
2004 Annual Plan Item 2 FERC Order 2004 and 2005 Annual Plan Item 8 (May 3, 2005)
(Affiliate Order Standards):
4.2.1, 4.3.6, 4.3.16, 4.3.18, 4.3.21, 4.3.22, 4.3.23, 4.3.25, 4.3.63
Recommendation R03035A:
4.3.23, 4.3.89, 4.3.90, 4.3.91, 4.3.92
   
If there is a conflict between any of these WGQ standards and other portions of this FERC Gas
Tariff, the WGQ standards will control.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Sheet Nos. 386 - 499 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                          ORIGINAL SHEET NOS. 386-499
                        HAVE NOT BEEN ISSUED, BUT HAVE
                         BEEN RESERVED FOR FUTURE USE

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 500 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                              PRO FORMA CONTRACTS
                               TABLE OF CONTENTS
   
Description                                                          Sheet No.
   
        Firm Transportation Service                                  501
   
        Interruptible Service                                        513
   
        Master Capacity Release Agreement                            522
   
        Master Gas Transportation Contract with Replacement Shipper  528
   
        Operational Balancing Agreement                              540
   
        Park and Loan Service Contract                               546
   
        Request for Service                                          552
   
        FT-FlexLimited Firm Transportation Service                   560
   
        Hourly Reserve Service                                       571
   
        Negotiated Rates                                             650

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 501 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                   PRO FORMA
                          GAS TRANSPORTATION CONTRACT
                        FOR FIRM TRANSPORTATION SERVICE
   
        This Gas Transportation Contract ("Contract") is made as of the _____
Day of ____________ by and between the Portland Natural Gas Transmission
System, a Maine general partnership, herein "Transporter" and [name of
Shipper] a [state] [entity], herein "Shipper," pursuant to the following
recitals and representations: 
   
       WHEREAS, the Federal Energy Regulatory Commission ("FERC") has on July
31, 1996, issued a Preliminary Determination resolving all non-environmental
matters and finding, pending environmental review, that Transporters proposal
in Docket No. CP96-249-000 to construct, own, operate, and maintain a natural
gas transmission system (herein called "System"), is in the public interest;
   
       [WHEREAS, ...]
   
       WHEREAS, Shipper intends to enter into natural gas supply arrangements,
including storage and transportation upstream of Transporters System, and
to make arrangements for the delivery of such gas supply for the account of
Shipper to the receipt point(s), and to make arrangements for the receipt and
transportation of such gas downstream of the delivery point(s) on
Transporters System, all commencing when Transporters System becomes
operation; and
   
       WHEREAS, Shipper intends to apply for and, subject to the terms and
conditions set forth herein, receive and accept all necessary federal,
provincial or state regulatory authorizing or exemptions in the United States
and Canada in order to transport and deliver gas for the account of Shipper to
the receipt point(s), commence transportation on Transporters System, and
receive and transport such gas downstream of the delivery point(s) on
Transporters System, when Transporters System becomes operational; and
   
       WHEREAS, Transporter intends to apply for and, subject to the terms and
conditions set forth herein, receive and accept all necessary United States
regulatory authorizations or exemptions to accept delivery of gas imported
by Shipper at the receipt point(s) and to transport such gas on behalf of
Shipper to the delivery point(s), subject to the terms and conditions of this
contract for transportation service on Transporters System between
Transporter and Shipper and Transporters gas tariff as approved by the FERC
(the "FERC Tariff") and

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 502 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein assumed, Transporter and Shipper agree as follows:
   
        1. Transporter shall apply for or cause to be applied for and use
reasonable best efforts to obtain from the FERC and other governmental and
regulatory authorities having jurisdiction such authorizations or exemptions
as are necessary: (a) to enable Transporter to construct, own and operate and
to provide transportation services on Transporters System for the account of
Shipper and others, and (b) for the performance of the transactions herein
contemplated or for any other transactions necessary for the performance of
those herein contemplated.
   
        2.   Shipper shall apply for or cause to be applied for and use
reasonable best efforts to obtain all of the agreements and governmental
authorizations or exemptions necessary to enable Shipper to deliver to and
receive from Transporter the transportation quantities specified below.
   
        3.   Subject to the condition herein, Transporter hereby agrees to
provide to Shipper, and Shipper hereby agrees to accept, firm natural gas
transportation service on Transporters System  under Transporters Rate
Schedule FT, providing for firm transportation from the receipt point(s) of
the quantities of natural gas specified below.  Such firm transportation
service shall be provided at the pressure and for the term specified in
Schedule 1.  This initial period of service will be automatically extended
from year to year unless canceled by either party on at least two (2) years
prior written notice.  The transportation service, unless otherwise agreed
upon, will be provided at the maximum applicable rate  as approved by the FERC
in the Tariff, as the Tariff may be changed from time to time, subject to the
rate discount provisions set forth below.
   
ARTICLE I - SCOPE OF CONTRACT
   
        1.  On the Commencement Date and each Day thereafter on which Shipper
and Transporter schedule Gas for transportation hereunder, Shipper shall cause
the Scheduled Quantity, up to the Maximum Daily Quantity (MDQ), to be
delivered to Transporter at the Receipt Point(s).
   
        2.  On the Commencement Date and each Day thereafter, Transporter
shall make the Scheduled Quantity available to or on behalf of Shipper at the
Delivery Point(s) on a firm basis.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 503 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        3.   Shipper shall be solely responsible for securing faithful
performance by gas supplier(s) and/or any applicable upstream or downstream
shippers and transporters in all matters which may affect Transporters
performance hereunder, and Transporter shall not be liable hereunder to
Shipper as a result of the failure of gas supplier(s) and/or any applicable
upstream or downstream shippers and transporters to so perform.
   
ARTICLE II - RESERVATION OF FIRM TRANSPORTATION CAPACITY
   
        1.   Shipper hereby reserves the right to cause Transporter to receive
from or for the account of Shipper at each Receipt Point on any Day such
quantities of Gas up to the MDQ for such Receipt Point as set forth on the
currently effective Schedule 1 appended hereto and Transporter shall make
available to or on behalf of Shipper at each Delivery Point on any Day such
quantities of Gas up to the MDQ for such Delivery Point as set forth on the
currently effective Schedule 2 appended hereto.  Schedules 1 and 2 are hereby
incorporated as part of this Contract.
   
        2.   Transporter shall make available to Shipper the service reserved
under this Article II on the Days and for the quantities of Gas for which such
service has been reserved, subject to Shippers compliance with the terms and
conditions of this Contract.
   
ARTICLE III - ALLOCATION OF OFF-PEAK CAPACITY
   
        On any Day during the period from April 1 through October 31 that
System Capacity is not otherwise scheduled under any Rate Schedule, such
capacity will be allocated pro rata to Rate Schedule FT Shippers whose Gas
Transportation Contracts have initial terms of twenty (20) Years or longer,
based on these Shippers annual reservation charges under Rate Schedules FT.
   
ARTICLE IV - RATE
   
        1.  For each Month, Shipper agrees to pay the Recourse Rate, or a
negotiated rate mutually agreed to in writing by Shipper and Transporter,
multiplied by the sum of the Receipt Point Scheduled Quantity or Quantities
during such Month; provided, however, that in the event that Transporter
determines, in its sole discretion on a basis that is not unduly
discriminatory, or otherwise pursuant to this Contract, to render service on
behalf of Shipper for a discounted usage rate, Transporter shall notify
Shipper in writing of the amount of such discounted usage rate, the Day(s) on
which such rate shall be in effect and the quantities to which such rate
applies.  For each DTH of Scheduled Quantity to which a discounted usage rate
applies, as set forth in Transporters notice, Shipper agrees to pay and shall
pay the applicable discounted usage rate in lieu of the maximum usage rate.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 504 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
        2.  For each Month, Shipper agrees to pay the Recourse Rate, or a
negotiated rate mutually agreed to in writing by Shipper and Transporter,
multiplied by the Shippers Maximum Contract Demand as specified in this
Contract; provided however, that in the event that Transporter determines, in
its sole discretion or otherwise pursuant to this Contract, to render service
on behalf of Shipper for a discounted reservation rate, Transporter shall
notify Shipper in writing of the amount of such discounted reservation rate,
the Day(s) on which such rate shall be in effect and the quantities of which
such rate applies.  For each DTH of the Maximum Contract Demand to which a
discounted reservation rate applies, as set forth in Transporters notice,
Shipper agrees to pay and shall pay the applicable discounted reservation rate
in lieu of the maximum reservation rate.
   
        3.  Shipper agrees to pay and shall pay all applicable charges
specified in Rate Schedule FT.
   
        4.  For all capacity allocated to Shipper under Article III herein,
Shipper shall not pay reservation charges but Shipper shall pay transportation
usage charges, surcharges, fees, and other charges allocated to such capacity
or the quantities transported.
   
ARTICLE V - DECONTRACTING
   
        Transporter will provide a notice to Shipper after all the following
conditions are satisfied:  (a)  Transporter on a pro forma basis is projected
to receive during the next 12 month period revenues at least equal to its
annualized Cost of Service (as hereinafter defined),  (b) Transporter has
executed an agreement with a new or existing replacement shipper for firm
capacity which, together with all other transportation agreements (including
the Firm Transportation Contracts), will provide revenues in excess of
Transporters Cost of Service, and (c) the replacement shipper has a
creditworthiness rating of BBB (investment grade) or better.
Within sixty (60) days after giving such notice, Shipper will be permitted to 
request a reduction in the Maximum Contract Demand in its Firm Transportation
Contracts.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 505 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
        Shipper will be permitted to reduce the Maximum Contract Demand and
the associated term in an amount equivalent to the quantity and term covered
in the Firm Transportation Contract with the replacement shipper; provided,
however, that any such reduction in quantity and term, after conversion of the
units of quantity, term and rates to revenues, shall be permitted only to the
extent it does not reduce the recovery of revenues equal to Transporters Cost
of Service. Maximum Contract Demand will be reduced among all shippers
entitled to and requesting reductions in Firm Transportation Contracts, pro
rata, based on annual revenue contributions.
   
        For purposes of this paragraph, the Cost of Service shall be the cost
of service to be collected by Transporter calculated on the basis of the
principles established in its Certificate of Public Convenience and Necessity,
or any amendments thereto, issued by the FERC, or the cost of service in
effect pursuant to Transporters general rate filing under Section 4 of the
Natural Gas Act.  In the event the replacement shipper causes an increase in
the cost of service, the Cost of Service shall be increased by an equivalent
amount.
   
        If Shipper does not timely request a reduction in its Maximum Contract
Demand as provided herein, the amount by which Shipper would have been
entitled to reduce its Maximum Contract Demand shall be deemed Ineligible
Capacity.  With respect to such Ineligible Capacity, Shipper permanently
relinquishes the rights to reduce its Maximum Contract Demand under this
paragraph in a quantity equivalent to the Ineligible Capacity.  The right
relinquished under this paragraph shall take effect concurrently with the
relinquishment.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 506 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE VI - RATE SCHEDULES AND GENERAL TERMS AND CONDITIONS
   
        This Contract and all provisions contained or incorporated herein are
subject to the provisions of Rate Schedule FT and of the General Terms and
Conditions of Transporters Tariff, as such may be revised or superseded from
time to time, all of which by this reference are made a part hereof.  The
General Terms and Conditions and Rate Schedule FT shall control in the event
of a conflict between the General Terms and Conditions or Rate Schedule FT and
this Contract.  All of the terms defined in Transporters Tariff shall have
the same meaning wherever used in this Contract.
   
ARTICLE VII - TERM
   
        1.   The Commencement Date shall be the later of [             ] or
such date on which the facilities required to enable Transporter to render
service to Shipper hereunder are constructed, installed and made operational,
as shall be set forth in Transporters Final Notice to Shipper.
   
        2.   This Contract shall be effective as of the date first hereinabove
written, provided, however, that Transporter shall have no liability under
this Contract and shall be under no obligation to receive or to deliver any
quantities of Gas hereunder, and Shipper shall be under no obligation to pay
for transportation, prior to the Commencement Date.
   
        3.   This Contract shall continue in force and effect until
[expiration date], and Year to Year thereafter unless terminated by either
party upon twelve (12) Months prior written notice to the other; provided,
however, that if the FERC authorizes Transporter to abandon service to Shipper
on an earlier date, this Contract shall terminate as of such earlier date.
   
        4.   The termination of this Contract by expiration of fixed Contract
term or by termination notice provided by Shipper triggers pregranted
abandonment under Section 7 of the Natural Gas Act as of the effective date of
the termination.
   
        5.   Any provision of this Contract necessary to correct or cash-out
imbalances or to make payment under this Contract as required by the Tariff
will survive the other parts of this Contract until such time as such
balancing or payment has been accomplished.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 507 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE VIII - NOTICES
   
        Notices to Transporter shall be addressed to:
   
               Portland Natural Gas Transmission System
               One Harbour Place
               Portsmouth, New Hampshire 03801
   
        Notices to Shipper hereunder shall be addressed to:
   
                 [Name of Shipper]
                 [address]
   
        Either party may change its address under this Article by written
notice to the other party.
   
ARTICLE IX - TRANSFER AND ASSIGNMENT OF CONTRACT
   
        Any entity which shall succeed by purchase, merger or consolidation to
the properties, substantially as an entirety, of either Transporter or
Shipper, as the case may be, shall be entitled to the rights and shall be
subject to the obligations of its predecessor in title under this Contract.
Any party may, without relieving itself of its obligations under this
Contract, assign any of its rights hereunder to an entity with which it is
affiliated, but otherwise no assignment of this Contract or of any of the
rights or obligations hereunder shall be made unless there first shall have
been obtained the written consent thereto of Shipper in the event of an
assignment by Transporter, or Transporter in the event of an assignment by
Shipper, which consents shall not be unreasonably withheld.  It is agreed,
however, that the restrictions on assignment contained in this Article VIII
shall not in any way prevent either party to this Contract from pledging or
mortgaging its rights hereunder as security for its indebtedness.
   
        Shipper acknowledges that Transporter intends to make a collateral
assignment of this Contract to financial institutions (collectively, the
"Lenders") in connection with a Financing Agreement and agrees that if the
Lenders succeed to the interest of Transporter by foreclosure or otherwise
Shipper shall accord the Lenders the same rights as Transporter hereunder.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 508 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        In order to facilitate obtaining financing or refinancing for the
System, Shipper shall execute such consents, agreements or similar documents
with respect to a collateral assignment hereof to the Lenders, and any credit
support documents, and shall deliver an opinion of counsel on behalf of
Shipper and any provider of credit support, as Lenders may reasonably request
in connection with the documentation of the financing or refinancing for the
System, which consent and opinion shall, among other things warrant or opine
the enforceability of this Contract and of any credit support documents under
the applicable governing law(s) and the compliance thereof with all applicable
law.
   
ARTICLE X - NONRECOURSE OBLIGATION OF PARTNERSHIP AND OPERATOR
   
        Shipper acknowledges and agrees that: (a) Transporter is a Maine
general partnership; (b) Shipper shall have no recourse against any partner in
Transporter with respect to Transporters obligations under this Contract and 
that its sole recourse shall be against the partnership assets, irrespective
of any failure to comply with applicable law or any provision of this
Contract; (c) no claim shall be made against any partner under or in
connection with this Contract; (d) Shipper shall have no right of subrogation
to any claim of Transporter for any capital contributions from any partner to
Transporter; (e) no claims shall be made against the Operator, its officers,
employees, and agents, under or in connection with this Contract and the
performance of Operators duties as Operator (provided that this shall not bar
claims resulting from the gross negligence or willful misconduct of Operator,
its officers, employees or agents) and Shipper shall provide Operator with a
waiver of subrogation of Shippers insurance company for all such claims; and
(f) this representation is made expressly for the benefit of the partners in
Transporter and Operator.
   
ARTICLE XI - LAW OF CONTRACT
   
        Notwithstanding conflict-of-laws rules, the interpretation and
performance of this Contract shall be in accordance with and controlled by the
laws of the State of Maine.
   
ARTICLE XII - CHANGE IN TARIFF PROVISIONS
   
        Shipper agrees that Transporter shall have the unilateral right to
file with the Federal Energy Regulatory Commission or any successor regulatory
authority any changes in any of the provisions of its Tariff, including of any
of its Rate Schedules, or the General Terms and Conditions, as Transporter may
deem necessary, and to make such changes effective at such times as
Transporter desires and is possible under applicable law.
   
ARTICLE XIII - MISCELLANEOUS

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 509 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        IN WITNESS WHEREOF, the parties hereto have caused this Contract to be
duly executed in several counterparts by their proper officers thereunto duly
authorized, as of the date first hereinabove written.
   
ATTEST:                PORTLAND NATURAL GAS TRANSMISSION SYSTEM
   
                       By:
   
   
   
ATTEST:                [NAME OF SHIPPER]
   
                       By:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 510 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                               SCHEDULE 1
   
Receipt Point:
   
Maximum Daily Quantity:
   
Minimum Delivery Pressure:
   
Maximum Contract Demand:
   
Effective Service Period:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 511 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
   
                               SCHEDULE 2
   
Receipt Point:
   
Maximum Daily Quantity:
   
Minimum Delivery Pressure:
   
Maximum Contract Demand:
   
Effective Service Period:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Sheet No. 512 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                             ORIGINAL SHEET NO.512
                         HAS NOT BEEN ISSUED, BUT HAS
                         BEEN RESERVED FOR FUTURE USE

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 513 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                   PRO FORMA
                          GAS TRANSPORTATION CONTRACT
                   FOR INTERRUPTIBLE TRANSPORTATION SERVICE
   
   
        This Gas Transportation Contract ("Contract") is made as of the [date]
Day of [Month], [Year] by and between Portland Natural Gas Transmission
System, a Maine general partnership, herein called "Transporter," and [name of
Shipper], a [state] [entity] herein called "Shipper," pursuant to the
following recital and representations:
   
        WHEREAS, the Federal Energy Regulatory Commission ("FERC") has issued
a Certificate of Public Convenience and Necessity, authorizing Transporter to
construct, own, operate, and maintain a natural gas transmission system
(herein called "System"), or FERC has issued a Preliminary Determination on
non- environmental issues with respect to the System;
   
       WHEREAS
   
       WHEREAS
   
       NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein assumed, Transporter and Shipper agree as follows:
   
ARTICLE I - SCOPE OF CONTRACT
   
        1.   On the Commencement Date and each Day thereafter on which Shipper
and Transporter schedule Gas for transportation hereunder, Shipper shall cause
the Scheduled Quantity, up to the Maximum Daily Quantity (MDQ), to be
delivered to Transporter at the Receipt Point(s).
   
        2.   On the Commencement Date and each Day thereafter on which the
Scheduled Quantity is delivered to Transporter at the Receipt Point(s)
pursuant to Section 1 of this Article I, Transporter shall, subject to
interruption of service by Transporter in accordance with this Contract and
Transporters Tariff, make the Scheduled Quantity available to or on behalf of
Shipper at the Delivery Point(s).
   
        3.   Shipper shall be solely responsible for securing faithful
performance by gas supplier(s) and/or any applicable upstream or downstream
shippers and transporters in all matters which may affect Transporters
performance hereunder, and Transporter shall not be liable hereunder to
Shipper as a result of the failure of gas supplier(s) and/or any applicable
upstream or downstream shippers and transporters to so perform.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 514 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE II - INTERRUPTIBLE TRANSPORTATION CAPACITY
   
        1. Shipper hereby contracts for the right to cause Transporter to
receive from or for the account of Shipper at each Receipt Point such
quantities of Gas up to the MDQ for such Receipt Point as set forth on the
currently effective Schedule appended hereto, on any Day on which Transporter
has interruptible capacity available to Shipper, and Transporter shall make
available to or on behalf of Shipper on an interruptible basis at each
Delivery Point on such Day such quantities of Gas up to the MDQ for such
Delivery Point as set forth on the currently effective Schedule 2 appended
hereto.  Schedules 1 and 2 are hereby incorporated as part of this Contract.
   
        2.  Transporter shall make available to Shipper the service contracted
for under this Article II on the Days and for the quantities of Gas for which
Transporter has interruptible capacity available to Shipper, subject to
Shippers compliance with the terms and conditions of this Contract.
   
ARTICLE III - RATE
   
        1.   For each Month, Shipper agrees to pay the Recourse Rate, or a
negotiated rate mutually agreed to in writing by Shipper and Transporter,
multiplied by the sum of the Receipt Point Scheduled Quantity or Quantities
during such Month; provided, however, that in the event that Transporter
determines, in its sole discretion on a basis that is not unduly
discriminatory, or otherwise pursuant to this Contract to render service on
behalf of Shipper for a discounted usage rate, Transporter shall notify
Shipper in writing of the amount of such discounted usage rate, the Day(s) on
which such rate shall be in effect and the quantities to which such rate
applies.  For each DTH of Scheduled Quantity to which a discounted usage rate
applies, as set forth in Transporters notice, Shipper agrees to pay and shall
pay the applicable discounted usage rate in lieu of the maximum usage rate.
   
        2.   Shipper agrees to pay and shall pay all other applicable charges
specified in Rate Schedule IT.
   
ARTICLE IV - RATE SCHEDULES AND GENERAL TERMS AND CONDITIONS
   
        This Contract and all provisions contained or incorporated herein are
subject to the provisions of Rate Schedule IT and of the General Terms and
Conditions as such may be revised or superseded from time to time, all of
which by this reference are made a part hereof.  The General Terms and
Conditions and Rate Schedule IT shall control in the event of a conflict
between the General Terms and Conditions or Rate Schedule IT and this
Contract.  All of the terms defined in Transporters Tariff shall have the
same meaning wherever used in this Contract.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 515 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE V - TERM
   
        1.  The Commencement Date shall be the later of [_____] or such date
on which the facilities required to enable Transporter to render service to
Shipper hereunder are constructed, installed and made operational, as shall be
set forth in Transporters Final Notice to Shipper.
   
        2.  This Contract shall be effective as of the date first herein above
written; provided, however, that Transporter shall have no liability under
this Contract and shall be under no obligation to receive or to deliver any
quantities of Gas hereunder, and Shipper shall be under no obligation to pay
for transportation, prior to the Commencement Date.
   
        3.  This Contract shall continue in force and effect until [expiration
date], and Year to Year thereafter, unless terminated by either party upon
ninety (90) Days prior written notice to the other; provided, however, that if
the FERC authorizes Transporter to abandon service to Shipper on an earlier
date, this Contract shall terminate as of such earlier date.
   
        4.  Any provision of this Contract necessary to correct or cash-out
imbalances or to make payment under this Contract as required by the Tariff
will survive the other parts of this Contract until such time as such
balancing or payment has been accomplished.
   
ARTICLE VI - NOTICES
   
        Notices to Transporter shall be addressed to:
   
               Portland Natural Gas Transmission System
               One Harbour Place
               Portsmouth, New Hampshire 03801
   
        Notices to Shipper hereunder shall be addressed to:
   
               [Name of Shipper]
               [address]
   
        Either party may change its address under this Article by written
notice to the other party.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 516 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE VII - TRANSFER AND ASSIGNMENT OF CONTRACT
   
        Any entity which shall succeed by purchase, merger or consolidation to
the properties, substantially as an entirety, of either Transporter or
Shipper, as the cause may be, shall be entitled to the rights and shall be
subject to the obligations of its predecessor in title under this Contract.
Any party may, without relieving itself of its obligations under this
Contract, assign any of its rights hereunder to an entity with which it is
affiliated, but otherwise no assignment of this Contract or of any of the
rights or obligations hereunder shall be made unless there first shall have
been obtained the written consent thereto of Shipper in the event of an
assignment by Transporter or Transporter in the event of an assignment by
Shipper, which consents shall not be unreasonably withheld.  It is agreed,
however, that the restrictions on assignment contained in this Article VII
shall not in any way prevent either party to this Contract from pledging or
mortgaging its rights hereunder as security for its indebtedness.
   
ARTICLE VIII - NONRECOURSE OBLIGATION OF PARTNERSHIP AND OPERATOR
   
        Shipper acknowledges and agrees that: (a) Transporter is a Maine
general partnership; (b) Shipper shall have no recourse against any partner in
Transporter with respect to the obligations of Transporter under this
Contract and that its sole recourse shall be against the partnership assets,
irrespective of any failure to comply with applicable law or any provision of
this Contract; (c) no claim shall be made against any partner under or in
connection with this Contract; (d) Shipper shall have no right of subrogation
to any claim of Transporter for any capital contributions from any partner to
Transporter; (e) no claims shall be made against the Operator, its officers,
employees, and agents, under or in connection with this Contract and the
performance of Operators duties as Operator (provided that this shall not bar
claims resulting from the gross negligence or willful misconduct of Operator,
its officers, employees or agents) and Shipper shall provide Operator with a
waiver of subrogation of Shippers insurance company for all such claims; and
(f) this representation is made expressly for the benefit of the partners in
Transporter and Operator.
   
ARTICLE IX - LAW OF CONTRACT
   
        Notwithstanding conflict-of-law rules, the interpretation and
performance of this Contract shall be in accordance with and controlled by the
laws of the State of Maine.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 517 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE X - CHANGE IN TARIFF PROVISIONS
   
        Shipper agrees that Transporter shall have the unilateral right to
file with the Federal Energy Regulatory Commission or any successor regulating
authority any changes in any of the provisions of its Tariff, including any of
its Rate Schedules, or the General Terms and Conditions, as Transporter may
deem necessary, and to make such changes effective at such times as
Transporter desires and is possible under applicable law.
   
ARTICLE XI - MISCELLANEOUS

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 518 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        IN WITNESS WHEREOF, the parties hereto have caused this Contract to be
duly executed in several counterparts by their proper officers thereunto duly
authorized, as of the date first hereinabove written.
   
ATTEST:                       PORTLAND NATURAL GAS TRANSMISSION SYSTEM
   
                              By
   
   
   
ATTEST:                       [NAME OF SHIPPER]
   
                              By

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 519 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                  SCHEDULE 1
   
Receipt Point:
   
Maximum Daily Quantity:
   
Minimum Receipt Pressure:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 520 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                  SCHEDULE 2
   
Delivery Point:
   
Maximum Daily Quantity:
   
Minimum Delivery Pressure:
   
Maximum Delivery Pressure:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Sheet No. 521 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                            ORIGINAL SHEET NO. 521
                         HAS NOT BEEN ISSUED, BUT HAS
                         BEEN RESERVED FOR FUTURE USE

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 522 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 522
  
Second Revised Volume No. 1
  
  
  
  


  
 MASTER CAPACITY RELEASE AGREEMENT


 

This Master Capacity Release Agreement ("Agreement") is made as of the

[date] Day of [Month], [Year], by and between Portland Natural Gas

Transmission System, a Maine general partnership, herein called "Transporter,"

and [name of Releasing Shipper], a [state] [entity], herein called "Releasing

Shipper," pursuant to the following recitals and representations:


 

WHEREAS Transporter and Releasing Shipper have executed a Gas

Transportation Contract for firm service dated [date], identified as Contract

No. [#];


 

WHEREAS Releasing Shipper desires, from time to time, to release all or

a portion of the capacity reserved by it under such Gas Transportation

Contract for use by a Replacement Shipper pursuant to the capacity release

provisions set forth in Section 11 of the General Terms and Conditions;


 

WHEREAS Transporter and Releasing Shipper now desire to establish the

terms and conditions of a Master Capacity Release Agreement under which

Releasing Shipper will, from time to time, release all or a portion of its

firm capacity on a temporary or permanent basis;


 

NOW, THEREFORE, in consideration of the mutual covenants and agreements

herein assumed, Transporter and Releasing Shipper agree as follows:


 

ARTICLE I - SCOPE AND PURPOSE OF THIS AGREEMENT


 

1. Subject to the terms and conditions of this Agreement and of

Transporter's Tariff, Releasing Shipper may from time to time release all or

part of its firm capacity to Transporter. Releasing Shipper agrees that

subject to any recall rights stated in the Gas Transportation Contract between

Transporter and Replacement Shipper, it will not request or be entitled to

receive service under its Gas Transportation Contract to the extent and during

the period that such service has been released hereunder and that Releasing

Shipper's Gas Transportation Contract for firm service will effectively be

amended to such extent.


 

The terms of a specific capacity release, including its quantity and

duration, and the specific receipt and delivery points shall be set forth in

the Addendum(s) to this Master Capacity Release Agreement, in the form

attached hereto, executed by Releasing Shipper. The Addendum(s) shall be

deemed to be an executed Capacity Release Agreement, under this Master

Capacity Release Agreement, and shall be subject to the terms and conditions

hereof and of Transporter's Tariff, including the provisions of Section 11 of

the General Terms and Conditions. An officer of Shipper shall notify

Transporter in writing of the person(s) authorized on behalf of Shipper to

submit to Transporter specific capacity release transactions in the form of

the Addendum attached hereto.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 523 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
      2. To the extent that Releasing Shipper does not hereunder release all
of its rights to serve under its Gas Transportation Contract for firm service
and/or if the term of Releasing Shippers Gas Transportation Contract extends
beyond the period of the release as described in the Addendum, Transporter
agrees to provide service to Releasing Shipper under such Gas Transportation
Contract as such Gas Transportation Contract is amended by the provisions of
this Master Capacity Release Agreement.
   
ARTICLE II - RATE CREDITING PROVISIONS
   
      1. Releasing Shippers reservation charge shall be credited each Month
by the reservation charge billed to Replacement Shipper(s) by Transporter
(hereinafter the "Replacement Reservation Charge"), as well as any additional
charges paid by Replacement Shipper, subject to such further crediting
conditions as may be outlined in the Addendum and in Section 11 of the General
Terms and Conditions.
   
      2. Releasing Shipper shall remain liable to Transporter for the full
amount of the reservation charge for any Month in which the Replacement
Shipper(s) fails to pay all or any portion of the Replacement Reservation
Charge owing under the Replacement Shippers Gas Transportation Contract.
   
ARTICLE III- CAPACITY RELEASE MARKETING FEES
   
      Releasing Shipper shall pay Transporter any applicable marketing fees
set forth in Section 11 of the General Terms and Conditions.
   
ARTICLE IV - RATE SCHEDULES AND GENERAL TERMS AND CONDITIONS
    
      This Agreement and all terms and all provisions contained or
incorporated herein are subject to the provisions of Rate Schedule FT, and of
the General Terms and Conditions as such may be revised or superseded from
time to time, all of which are by this reference made a part hereof. The
General Terms and Conditions and Rate Schedule FT shall control in the event
of a conflict between the General Terms and Conditions or Rate Schedule FT and
this Agreement. All of the terms defined in Transporters Tariff shall have
the same meaning wherever used in this Agreement.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 524 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE V - LAW OF CONTRACT
   
      Notwithstanding conflict-of-law rules, the interpretation and
performance of this Agreement shall be in accordance with and controlled by
the laws of the State of Maine.
   
ARTICLE VI - NOTICES
   
Notices to Transporter shall be addressed to:
   
            Portland Natural Gas Transmission System
            One Harbour Place
            Portsmouth, NH 03801
            [fax number]
   
Notices to Releasing Shipper shall be addressed to: 
   
            [Name of Releasing Shipper]
            [Address]
            [fax number]
   
      Either party may change its address under this Article by written notice
to the other party.
   
ARTICLE VII - TERM OF AGREEMENT
   
      This Agreement shall become effective as of the date set forth herein
above and shall continue in effect for a term of _     __ ("Primary Term") and
shall remain in force from thereafter unless terminated by either party by
written notice ______________ prior to the end of the Primary Term or any
successive term thereafter.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 525 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
      IN WITNESS WHEREOF, the parties hereto have caused this Master Capacity
Release Agreement to be duly executed in several counterparts by their proper
officers thereunto duly authorized, as of the date first hereinabove written.
   
   
ATTEST:                             PORTLAND NATURAL GAS TRANSMISSION SYSTEM
   
__________________                  By______________________________________
   
   
   
ATTEST:                             [NAME OF RELEASING SHIPPER]
   
    
 _________________                  By

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 526 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 526
  
Second Revised Volume No. 1
  
  
  
  


  
ADDENDUM 1

CAPACITY RELEASE


 

This capacity release is performed subject to the terms of the Master

Capacity Release Agreement between Transporter and Shipper.


 

TERM OF RELEASE:


 

RECEIPT POINT:


 

DELIVERY POINT:


 

QUANTITY:


 

CREDIT PROVISIONS:


 

1. Releasing Shipper's reservation charge shall be credited each

Month as follows:


 

[Credit to be equal to the reservation charges billed to the

Replacement Shipper as set forth on Attachment A of such

Replacement Shipper's Gas Transportation Contract for firm service

times the MDQ for each Day at each Receipt Point.]


 

SPECIAL CONDITIONS OF RELEASE:


 

This Addendum 1 is generated by Releasing Shipper's capacity

release to [REPLACEMENT SHIPPER] (identified in PNGTS' electronic

records as contract CR-XXXX-XXX) with a reservation rate of

[$X.XXXX / Dth / ].


 

Releasing Shipper's release of capacity hereunder is subject to

the following terms and conditions:


 


 

[LIST OF OTHER TERMS AND CONDITIONS IF APPLICABLE]


 


 


 

ATTEST: [NAME OF RELEASING SHIPPER]


 


 

By


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Sheet No. 527 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                            ORIGINAL SHEET NO. 527
                         HAS NOT BEEN ISSUED, BUT HAS
                         BEEN RESERVED FOR FUTURE USE

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 528 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                      MASTER GAS TRANSPORTATION CONTRACT
                           WITH REPLACEMENT SHIPPER
   
   
      This Master Gas Transportation Contract with Replacement Shipper
("Master Contract") is made as of the [date] Day of [Month], [Year] by and
between Portland Natural Gas Transmission System, a Maine general partnership,
herein called "Transporter," and [name of Replacement Shipper], a [state]
[entity], herein called "Replacement Shipper," pursuant to the following
recitals and representations:
   
      WHEREAS Replacement Shipper may from time to time seek capacity released
from a Releasing Shipper pursuant to the terms of Section 11 of the General
Terms and Conditions and the specific terms and conditions described in each
effective Addendum which is appended hereto;
   
      WHEREAS Replacement Shipper, or another person on behalf of Replacement
Shipper, has entered or is about to enter into all necessary contracts for the
acquisition of Gas, for the delivery of such Gas to Transporter at one or more
Receipt Point(s) on the System, and/or the further transportation of such Gas
from one or more Delivery Point(s) on the System, as applicable;
   
      WHEREAS Replacement Shipper represents that all necessary regulatory and
governmental approvals to acquire and sell, transport, and, if appropriate,
export and/or import the Gas to be transported by Transporter have been
obtained;

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 529 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
      WHEREAS Transporter and Replacement Shipper now desire to establish the
terms and conditions under which Transporter will render firm services to
Replacement Shipper by entering into this Master Contract;
   
      NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein assumed, Transporter and Replacement Shipper agree as follows:
   
ARTICLE I - SCOPE OF CONTRACT
   
      1. During the term of this Master Contract, on each Day on which
Replacement Shipper and Transporter schedule Gas for transportation hereunder,
Replacement Shipper shall cause the Scheduled Quantity up to the Maximum Daily
Quantity (MDQ) to be delivered to Transporter at the Receipt Point(s).
   
      2. Replacement Shipper shall execute each Addendum in the form appended
hereto for each transaction under this Master Contract, which for purposes of
Section 7 of the General Terms and Conditions shall set forth the term of the
release transaction, the rate Replacement Shipper is obligated to pay, the
Receipt and Delivery Point(s) Replacement Shipper may use, the maximum
quantity of capacity Replacement Shipper has available for its use at such
point(s), and other relevant terms and conditions associated with Replacement
Shippers acquisition of the released capacity. An officer of Shipper shall
notify Transporter in writing of the person(s) authorized on behalf of Shipper
to submit to Transporter such specific replacement shipper contracts.
   
      The Addendum(s) shall be deemed to be an executed Capacity Release
Agreement, under this Master Contract, and shall be subject to the terms and
conditions hereof and of Transporters Tariff, including the provisions of
Section 11 of the General Terms and Conditions. An officer of Shipper shall
notify Transporter in writing of the person(s) authorized on behalf of Shipper
to submit to Transporter specific transactions in the form of the Addendum
attached hereto.
   
      3. On each Day during the Term of a transaction under this Master
Contract, Transporter shall make the Scheduled Quantity available to or on
behalf of Replacement Shipper at the Delivery Point(s) on a firm basis.
   
      4. Replacement Shipper shall be solely responsible for securing faithful
performance by gas supplier(s) and/or any applicable upstream or downstream
shippers and transporters in all matters which may affect Transporters
performance hereunder, and Transporter shall not be liable hereunder to
Replacement Shipper as a result of the failure of gas supplier(s) and/or any
applicable upstream or downstream shippers and transporters to so perform.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 530 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 526
  
Second Revised Volume No. 1
  
  
  
  


  
   
ARTICLE II - RESERVATION OF FIRM TRANSPORTATION CAPACITY


 

1. Replacement Shipper hereby reserves the right to cause Transporter to

receive from or for the account of Replacement Shipper at each Receipt Point

on any Day such quantities of Gas up to the MDQ for such Receipt Point as set

forth on each currently effective Addendum, and Transporter shall make

available to or on behalf of Replacement Shipper at each Delivery Point on any

Day such quantities of Gas up to the MDQ for such Delivery Point as set forth

on the currently effective Addendum; provided, however, Replacement Shipper's

right to


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 531 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
request service hereunder, and Transporters obligation to provide such
service, shall be subject to the provisions of any Capacity Release Agreement
executed by Replacement Shipper and Transporter; and, provided further,
Replacement Shippers right to request service hereunder and Transporters
obligation to provide such service shall be subject to the terms and
conditions stated in each effective Addendum appended thereto.
   
      2. Transporter shall make available to Replacement Shipper the service
reserved under this Article II on the Days and for the quantities of Gas for
which such service has been reserved, subject to Replacement Shippers
compliance with the terms and conditions of this Master Contract.
   
ARTICLE III- RATE
   
      1. For each Month, Replacement Shipper agrees to pay the applicable
maximum usage rate multiplied by the sum of the Receipt Point Scheduled
Quantity or Quantities nominated by Replacement Shipper during such Month;
provided, however, that in the event that Transporter determines, in its sole
discretion on a basis that is not unduly discriminatory, or otherwise pursuant
to this Contract, to render service on behalf of Replacement Shipper for a
discounted usage rate, Transporter shall notify Replacement Shipper in writing
of the amount of such discounted usage rate, the Day(s) on which such rate
shall be in effect and the quantities to which such rate applies. For each DTH
of Scheduled Quantity to which a discounted usage rate applies, as set forth
in Transporters notice, Replacement Shipper agrees to pay and shall pay the
applicable discounted usage rate in lieu of the maximum usage rate.
   
      2. During the Term of this Contract, Replacement Shipper agrees to pay
and shall pay the Monthly reservation charges set forth in each effective
Addendum attached hereto.
   
      3. If Replacement Shipper is a Releasing Shipper, as defined in Section
11 of the General Terms and Conditions, for each Month, the reservation charge
billed to Replacement Shipper shall be credited in accordance with the
applicable Rate Schedule and Section 11.17 of the General Terms and
Conditions.
   
      4. Replacement Shipper agrees to pay and shall pay all applicable
charges specified in Rate Schedule FT.
   
      5. Any additional rates or charges to be paid by Replacement Shipper
shall be set forth in the Addendum applicable to each transaction hereunder.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 532  : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 532
  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE IV - RATE SCHEDULES AND GENERAL TERMS AND CONDITIONS


 

This Master Contract and all terms and all provisions contained or

incorporated herein are subject to the provisions of Rate Schedule FT, and of

the General Terms and Conditions as such may be revised or superseded from

time to time, all of which by this reference are made a part hereof. The

General Terms and Conditions and Rate Schedule FT shall control in the event

of a conflict between the General Terms and Conditions or Rate Schedule FT and

this Master Contract. All of the terms defined in Transporter's Tariff shall

have the same meaning wherever used in this Master Contract.


 

ARTICLE V - TERM


 

1. This Master Contract shall become effective as of the date set forth

herein above and shall continue in effect for a term of ____ ("Primary Term")

and shall remain in force from thereafter unless terminated by either party by

written notice ________ prior to the end of the Primary Term or any successive

term thereafter.


 

2. This Master Contract shall be effective as of the date first herein

above written; provided, however, that Transporter shall have no liability

under this Master Contract and shall be under no obligation to receive or to

deliver any quantities of Gas hereunder prior to the first Day of the Term.


 

3. This Master Contract shall continue in force and effect until the

last Day of the Term; provided, however, that if the FERC authorizes

Transporter to abandon service to Replacement Shipper on an earlier date, this

Master Contract shall terminate as of such earlier date.


 

4. The termination of this Master Contract by expiration of fixed

Contract term or by termination notice provided by Shipper triggers pregranted

abandonment under Section 7 of the Natural Gas Act as of the effective date of

the termination.


 

5. Any provision of this Master Contract necessary to correct or cash-

out imbalances or to make payment under this Master Contract as required by

the Tariff will survive the other parts of this Master Contract until such

time as such balancing or payment has been accomplished.


 

ARTICLE VI - NOTICES


 

Notices to Transporter shall be addressed to:


 

Portland Natural Gas Transmission System

One Harbour Place

Portsmouth, New Hampshire 03801

[FAX NUNBER]


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 533 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 533
  
Second Revised Volume No. 1
  
  
  
  


  
  Notices to Replacement Shipper hereunder shall be addressed to:


 

[Name of Replacement Shipper]

[address]

[FAX NUMBER]


 

Either party may change its address under this Article by written notice to

the other party.


 

ARTICLE VII - TRANSFER AND ASSIGNMENT OF MASTER CONTRACT


 

Any entity which shall succeed by purchase, merger or consolidation to

the properties, substantially as an entirety, of either Transporter or

Replacement Shipper, as the case may be, shall be entitled to the rights and

shall be subject to the obligations of its predecessor in title under this

Master Contract. Any party may, without relieving itself of its obligations

under this Master Contract, assign any of its rights hereunder to an entity

with which it is affiliated, but otherwise no assignment of this Master

Contract or of any of the rights or obligations hereunder shall be made unless

there first shall have been obtained the written consent thereto of

Replacement Shipper in the event of an assignment by Transporter or

Transporter in the event of an assignment by Replacement Shipper, which

consents shall not be unreasonably withheld. It is agreed, however, that the

restrictions on assignment contained in this Article VII shall not in any way

prevent either party to this Master Contract from pledging or mortgaging its

rights hereunder as security for its indebtedness.


 

ARTICLE VIII - NONRECOURSE OBLIGATION OF PARTNERSHIP AND OPERATOR


 

Replacement Shipper acknowledges and agrees that: (a) Transporter is a

Maine general partnership; (b) Replacement Shipper shall have no recourse

against any partner in Transporter with respect to Transporter's obligations

under this Master Contract and that its sole recourse shall be against the

partnership assets, irrespective of any failure to comply with applicable law

or any provision of this Master Contract; (c) no claim shall be made against

any partner under or in connection with this Master Contract; (d) Replacement

Shipper shall have no right of subrogation to any claim of Transporter for any

capital contributions from any partner to Transporter; (e) no claims shall be

made against the Operator, its officers, employees, and agents, under or in

connection with this Master Contract and the performance of Operator's duties

as Operator (provided that this shall not bar claims resulting from the gross

negligence or willful misconduct of Operator, its officers, employees or

agents) and Replacement Shipper shall provide Operator with a waiver of

subrogation of Replacement Shipper's insurance company for all such claims;

and (f) this representation is made expressly for the benefit of the partners

in Transporter and Operator.


  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 03/01/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 534 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
ARTICLE IX - LAW OF CONTRACT
   
      Notwithstanding conflict-of-law rules, the interpretation and
performance of this Master Contract shall be in accordance with and controlled
by the laws of the State of Maine.
   
ARTICLE X - CHANGE IN TARIFF PROVISIONS
   
      Replacement Shipper agrees that Transporter shall have the unilateral
right to file with the Federal Energy Regulatory Commission any changes in the
terms of any of its Rate Schedules, General Terms and Conditions, or Pro Forma
Contracts as Transporter may deem necessary, and to make such changes
effective at such times as Transporter may deem necessary, and to make such
changes effective at such times as Transporter desires and is possible under
applicable law. Replacement Shipper may protest any filed changes before the
Federal Energy Regulatory Commission and exercise any other rights it may have
with respect thereto.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 535 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
      IN WITNESS WHEREOF, the parties hereto have caused this Master Contract
to be duly executed in several counterparts by their proper officers thereunto
duly authorized, as of the date first hereinabove written.
   
   
ATTEST:                             PORTLAND NATURAL GAS TRANSMISSION SYSTEM
   
   
   
_________________                   By_______________________________________
   
   
   
ATTEST:                             [NAME OF REPLACEMENT SHIPPER]
   
   
   
__________________                  By

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
First Revised Sheet No. 536 : Effective
 
  
  
FERC Gas Tariff
Original Sheet No. 536
  
Second Revised Volume No. 1
  
  
  
  


  
ADDENDUM
REPLACEMENT SHIPPER CONTRACT

TERM OF RELEASE:

RATE PROVISIONS:

Maximum Daily Quantity:

Receipt Point:

Delivery Point:

SPECIAL CONDITIONS OF RELEASE:

Shipper's acquisition of capacity hereunder is subject to the following terms and conditions:

	This release is generated by [RELEASING SHIPPER'S NAME] capacity
	(identified in PNGTS' electronic records as contract XX-XXXX-XXX), 		Offer [YYYYMMDD-XXXXXX]	with a reservation rate of [$X.XXXX / Dth /   ].

	[LIST OF OTHER TERMS AND CONDITIONS IF APPLICABLE]


The rights and obligations of Transporter and Shipper shall be subject to the terms set forth in this Addendum and Schedules 1 and 2, the Master Replacement Shipper Agreement, and the General Terms and Conditions of Transporter's Tariff.


ATTEST:					PORTLAND NATURAL GAS TRANSMISSION SYSTEM


_____________				By______________________________________


ATTEST:					[NAME OF SHIPPER]


_____________				By





  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 01/30/09
   

   
Effective date: 03/01/09
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 537 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                  SCHEDULE 1
   
Receipt Point:
   
Maximum Daily Quantity:
   
Minimum Receipt Pressure:
   
Maximum Contract Demand:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 538 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                  SCHEDULE 2
   
Delivery Point:
   
Maximum Daily Quantity:
   
Minimum Delivery Pressure:
   
Maximum Delivery Pressure:

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Sheet No. 539 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
   
                            ORIGINAL SHEET NO. 539
                         HAS NOT BEEN ISSUED, BUT HAS
                         BEEN RESERVED FOR FUTURE USE

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 540 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
                                   PRO FORMA
                        OPERATIONAL BALANCING AGREEMENT
   
(For use at Interconnections with Qualifying Pipelines)
   
        This Agreement is dated and effective_____________ by and between
           and Portland Natural Gas Transmission System.
   
        WHEREAS, the facilities operated by _________________ ("_____") and by
Portland Natural Gas Transmission System ("Transporter") interconnect at the
"Interconnection Point(s)" specified on Exhibit A attached hereto; and
   
        WHEREAS, Transporter and _______ have entered into one or more
agreements ("Agreements") whereby both Transporter and ________ either receive
Gas which Transporter and _______ cause to be delivered at the Interconnection
Point(s), or deliver Gas which Transporter and ______ cause to be received at
the Interconnection Point(s), and Transporter and ___________have entered into
agreements with others (hereinafter "shippers") whereby such Shippers cause
Gas to be delivered or received at the Interconnection Points;
   
        NOW, THEREFORE, Transporter and ___________ ("The Parties") agree as
follows:
   
ARTICLE I - NOMINATIONS AND CONFIRMATIONS
   
        1.1 Confirmation of Nominations.  Prior to the first Day of each
Month, the Parties shall reconcile and confirm electronically or in writing
the transportation Nominations received by each from Shippers for whom the
Parties would deliver or receive Gas at the Interconnection Point(s).  The
quantities (adjusted, if necessary, pursuant to each Partys tariff)
determined through this reconciliation and confirmation shall be the
"Scheduled Quantities".  The Scheduled Quantities may be changed throughout a
Day to accommodate intra-day changes, provided that any changes to the
confirmed and scheduled transportation quantities shall be effective only if
agreed to electronically or in writing by both Parties.  Any communications
regarding changes shall be substantially in a form mutually agreeable to the
Parties.  Nominations received pursuant to the Agreements shall be confirmed
electronically or orally with subsequent confirmation in writing or as
otherwise mutually agreed to by both Parties.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 541 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        1.2 Allocations Based on Scheduled Quantities.  The Parties intend
that the quantity actually delivered and received each Day at the
Interconnection Point(s) will equal the Scheduled Quantities.  Each Party will
allocate quantities which are to be delivered and received at the
Interconnection Point(s) among the Agreements and/or the Partys respective
Shippers commensurate with the Scheduled Quantities for each transaction.  Any
imbalance created when the actual physical flow is different than the
Scheduled Quantities computed in the aggregate for all Interconnection
Point(s) will be the "Operational Imbalance", which will be the responsibility
of the Parties to eliminate pursuant to this Agreement.
   
ARTICLE II - CORRECTION OF OPERATIONAL IMBALANCES
   
        2.1 Corrections in Flow Rates During a Day.  The Parties will be able
to request adjustments to actual deliveries or receipts at the Interconnection
Point(s) at any time during the Day by coordination between the Parties Gas
dispatchers for the purpose of eliminating the Operational Imbalance.  Each
Party will use reasonable efforts to deliver or receive such quantities when
the operating conditions on each Partys system permits, taking into
consideration the Nominations made by customers on each Partys system.  In
the event that an Interconnection Point(s) is unable to achieve the scheduled
flow rate, the Parties agree that swift corrective action will be taken.
   
        2.2 Corrections During the Month.  Estimated metered quantities, or
actual metered quantities where available, may be used by __________ or
Transporter for purposes of adjustments under this Section on a Daily basis
during the Month to determine the estimated Operational Imbalance at each
Interconnection Point(s).  Physical flow adjustments will be made by
 ___________ or Transporter for daily imbalances within 72 hours notice by
____________ or Transporter, as the case may be, unless mutually agreed to
otherwise, which agreement shall not be unreasonably withheld if the request
is due to operational constraints.  The Party which measures Gas quantities
shall make the Daily and Monthly Operational Imbalance estimate at each
Interconnection Point(s) available to the other Party on or before the third
Business Day after each applicable Day.  In the event that a capacity
constraint occurs on either Partys system which results in reduction of
quantities through an Interconnection Point(s), the Party on whose system the
constraint has occurred shall determine the reallocation of quantities to the
Shippers.  Such change in allocation shall be confirmed electronically or in
writing pursuant to the provisions of Article I (1.1) above.  If the
constraint occurs at an Interconnection Point(s), the Party which operates the
meter at an Interconnection Point(s) shall be deemed to have the constraint on
its system.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 542 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
        2.3 Corrections in Subsequent Periods.  The physical flow at each
Interconnection Point each Month will be determined and communicated by the
measuring Party to the other Party electronically or in writing as soon as
possible during the Month following the Month in question.  The Parties will
balance "In Kind", unless otherwise agreed upon.  Any "In Kind" imbalance
carried over from the prior Month will become part of the current Monthly
Operational Imbalance.  Any imbalance existing at the time of the
implementation of a new Operational Balancing Agreement will be held
separately and settled independently, unless mutually agreed to otherwise.
   
        2.4 Measurement of Operational Imbalance.  Unless otherwise agreed
upon, measurement of Gas for all purposes shall be in accordance with the
tariff of the Party which measures Gas quantities.
   
        2.5 Operational Integrity.  Nothing in this Article II shall limit a
Partys right to take action as may be required to adjust deliveries of Gas in
order to alleviate conditions which threaten the integrity of its system.
   
ARTICLE III - TERM
   
        Duration of Agreement.  This Agreement shall be effective from the
date hereof and shall remain in full force and effect on a Month to Month
basis unless terminated by either Party giving thirty Days written  notice,
with the termination to be effective at the end of a calendar Month.
Notwithstanding the above, if any material problems arise as a result of the
provisions of this Agreement, then the Parties will enter into good faith
negotiations to amend this Agreement to resolve such problems.  If the Parties
are unable to resolve such problems as a result of such negotiations, then
either Party may terminate this Agreement upon forty-eight (48) hours prior
written notice with the termination to be effective at the end of a calendar
Month.
   
ARTICLE IV - MISCELLANEOUS
   
        4.1 Warranties.  Transporter and ________ each warrant that as to any
Gas which it delivers or causes to be delivered to each other hereunder to
correct an Operational Imbalance (a) that it will at the time of delivery have
the right to deliver or cause to be delivered such Gas; (b) that it has the
right to allocate all deliveries from the Interconnection Point(s) in
accordance with this Agreement; and (c) that it will indemnify and save each
other harmless from suits, actions, debts, accounts, damages, costs, losses
and expenses arising from or out of adverse claims of any or all persons to
said Gas and claims of any or all persons to royalties, overriding royalties,
taxes, or other charges thereon or with regard to the allocation of Gas
hereunder.  The parties represent and warrant that all requisite
authorizations, if any, have been obtained as to any Gas which each delivers
or causes to be delivered hereunder.

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06
  
  
  
  


 
  
  
  
   
   
   
   
   
   
     
  
  
    
  
  



  
  

  

   
Portland Natural Gas Transmission System
   
 
   
Original Sheet No. 543 : Effective
 
  
  
FERC Gas Tariff

  
Second Revised Volume No. 1
  
  
  
  


  
      4.2 Governing Bodies.  This Agreement shall be subject to all
applicable laws, Federal or State, and to all applicable rules and
regulations of any duly authorized Federal, State or other government agency
having jurisdiction over the transactions described herein.  The
interpretation and performance of this contract shall be in accordance with
and controlled by the laws of the State of Maine, without regard to the
doctrines governing choice of law.
   
      4.3 Waivers.  No waiver by either Party of any one or more defaults by
the other in the performance of this Agreement shall operate or be construed
as a waiver of any future default or defaults, whether of a like or different
character.
   
      4.4 Law of Contract.  Notwithstanding conflict-of-law rules, the
interpretation and performance of this Agreement shall be in accordance with
and controlled by the laws of the State of Maine.
   
      4.5 Addresses for Notices and Billings:
   
            NOTICES:
   
   
    
   
   
   
   
            BILLINGS:
   
   
   
   
   
   
   
(With regard to operational matters, Transporter shall have the right to
designate different personnel or locations to receive notices from
for different periods of the week.)

  





 
  

  

  
Issued by: David J.Haag, Rates And Tariff Specialist
  

   
Issue date: 07/28/06
   

   
Effective date: 09/01/06