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


                   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