Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 213 Original Sheet No. 213 : Effective

6. INTERRUPTION AND CURTAILMENT OF SERVICE

6.1 In the event that Transporter determines, in its sole discretion,

that some or all Park and Loan services must be interrupted or curtailed in

order to satisfy Transporter's obligations to other Shippers consistent with

Section 10 of the General Terms and Conditions, or that such interruption or

curtailment is otherwise necessary or appropriate to avoid adverse impact on

the operation of Transporter's system, or if a Shipper has a Parked Quantity

or a Loan Quantity of less than 50 Dth, Transporter will notify, by telephone,

facsimile, e-mail or other means, any affected Shippers receiving Park or Loan

service that they must eliminate or reduce their existing Parked Quantity

and/or Loan Quantity, as applicable, over the period specified in

Transporter's notice. Such notices shall be issued to Shippers in the order

based upon the Present Value for each Shipper's outstanding Parked Quantities

or Loan Quantities at all Parking and Loan Points beginning with the lowest

Present Value first. Such notices must be given by Transporter with at least

one Day notice.

6.2 If Shipper fails to comply with a notice given in accordance with

Section 6.1 above, Transporter shall cash out the Parked Quantity that Shipper

was advised, but failed, to reduce or eliminate at the replacement cost of gas

less ten percent (10%), in order to recover Transporter's administrative

costs. The cash-out price of gas shall be computed as follows: (i) all volumes

subject to cash-out on a particular Day will be aggregated and offered for

sale in one lump sum; (ii) all revenues received from the sale of such volumes

will be aggregated for such Day; and, (iii) the aggregate revenues, less 10%,

for each Day will be applied pro rata to the aggregate cash-out volumes for

each Day. All quantities of Gas offered for sale pursuant to this section will

be posted on Transporter's Interactive Internet Website in a notice stating

the quantity of Gas offered for sale and the deadline for making bids. Such

volumes will be sold on a best bid basis, beginning with the highest bid.

6.3 If Shipper fails to repay its Loan Quantity to Transporter, or

fails to comply with a notice given in by Transporter in accordance with

Section 6.1 above, Transporter shall cash out Shipper's Loan Quantity at 115%

of the price of gas as reported by Gas Daily for Tennessee Gas Pipeline, Zone

6 (Delivered) on the Day following the expiration of the period specified in

Transporter's curtailment notice provided pursuant to Section 6.1 above,

multiplied by the Loan Quantity remaining on the Day the Loan Quantity was

originally due.