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

                   GENERAL TERMS AND CONDITIONS (Continued)
       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
       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