Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 211 Original Sheet No. 211 : Effective

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 Pipeline's 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 Customer's 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 Shipper's 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

Transporter's 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 Pipeline's 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 Transporter's General Terms and Conditions.