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. 224 Second Revised Sheet No. 224

Superseding: Original Sheet No. 224

RATE SCHEDULE HRS (cont.)

Hourly Reserve Service

On any Business Day, the request to transfer the discount must be submitted at

least two hours prior to the nomination that would use the discount at

alternate points. Transporter shall respond to the request within two hours

of receipt; however, any request received after 4:00 p.m. Central Clock Time

on any Business Day shall be responded by 9:00 a.m. Central Clock Time on the

following Business Day.

3.4 Measurement Variance

Subject to the terms of Sections 3.1 and 3.2 of this Article III, reservation

and usage charges shall be based on Shipper's applicable monthly Maximum

Contract Demand and Delivery Point Scheduled Quantities, respectively,

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 electronic bulletin board. Such published Measurement

Variance Factor will be bound by maximum and minimum percentages set forth on

currently effective Sheet No. 102 of this Tariff.

3.5 Negotiated Rates

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 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.