Portland Natural Gas Transmission System

Second Revised Volume No. 1

Effective Date: 08/01/2010, Docket: RP10-885-000, Status: Effective

Second Revised Sheet No. 208 Second Revised Sheet No. 208

Superseding: Original Sheet No. 208

RATE SCHEDULE IT (Continued)

3.4 Measurement Variance. Usage charges shall be based on Shipper's

applicable Delivery 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 Nos. 100-102 of this tariff.

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writing as being superseded by a negotiated rate(s) shall be ineffective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