Portland Natural Gas Transmission System

Second Revised Volume No. 1

Effective Date: 09/01/2006, Docket: RP06-449-000, Status: Effective

Original Sheet No. 204 Original Sheet No. 204 : Effective

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writing as being superseded by a negotiated rate(s) shall be ineffective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.

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.