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. 214 Original Sheet No. 214 : Effective

7. CONTRACT TERMINATION

The Park and Loan Service Contract may be terminated by either party on

30 days notice, or terminated by the Transporter on shorter notice if in its

sole discretion, the Shipper has not complied with the terms of the tariff,

including the creditworthiness requirements as set forth in Section 3 of

Pipeline's General Terms and Conditions. Unless a shorter period of time is

imposed in a notice issued in accordance with this Section 7, Shipper shall

eliminate any outstanding Parked Quantity or Loan Quantity within five (5)

days of termination of its Park and Loan Service Contract. If Shipper fails to

eliminate such balance, Transporter shall cash out any quantity remaining

after five (5) days at the replacement cost of gas plus fifteen percent (15%)

for Loan Quantity or the sale price of the gas less ten percent (10%) for

Parked Quantity. For such purposes, the replacement cost and sale price of gas

shall be computed as described in Section 6 above.

8. GENERAL TERMS AND CONDITIONS

Shipper shall provide Transporter with such information as is needed to

meet Transporter's obligations pursuant to 18 C.F.R. Part 284. Unless stated

otherwise, all of the General Terms and Conditions of Transporter's FERC

Tariff, and any revisions thereof that may be proposed and made effective from

time to time hereafter, shall apply to and are made a part of this Rate

Schedule.