Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 219 Original Sheet No. 219 : Effective

RATE SCHEDULE FT-FLEX (Continued)

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writing as being superseded by a negotiated rate(s)shall be ineffective during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

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.