Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 225 Original Sheet No. 225 : Effective

RATE SCHEDULE HRS (cont.)

Hourly Reserve Service

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Transporter and Shipper in writing as being superseded by a negotiated rate(s)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.RECEIPT AND DELIVERY POINTS

4.1 The Receipt Point(s) at which Transporter shall receive Gas for

Transportation hereunder shall be those listed in Schedule 1 appended to each

Gas Transportation Contract and such Schedule shall designate all of Shipper's

potential Receipt Point(s) and shall further designate Shipper's Primary

Receipt Point(s).

4.2 Shipper shall have the right to redesignate any points listed on Schedule

1 appended to each Gas Transportation Contract as Primary Receipt Point(s),

subject to available capacity and provisions of the General Terms and

Conditions. Furthermore, Shipper shall have the right to utilize all other

Receipt Point(s) as Secondary Receipt Point(s), subject to available capacity

and the provisions of the General Terms and Conditions.

4.3 Shipper shall have a single Primary Delivery Point listed in Schedule 2

to its Gas Transportation Contract. Shipper shall have the right to utilize

all other Delivery Points as Secondary Delivery Points, except that a request

for service at a Secondary Delivery Point shall be scheduled as a request for

service at an uniform hour flow rate without regard to Shipper's MHQ;

provided, however, that Transporter shall honor Shipper's MHQ at a Secondary

Delivery Point if doing so will not interfere with the provision of any other

service request on the system.

4.4 Shipper shall have the right to redesignate any point listed on Schedule 2

appended to each Gas Transportation Contract as Primary Delivery Point,

subject to available capacity and the provisions of the General Terms and

Conditions; provided, however, if Shipper is paying a Negotiated Rate for

service under the Agreement and requests to change its Primary Delivery Point

under the Agreement, then unless otherwise agreed to in writing by Shipper and

Transporter the rate applicable for service to such new Primary Delivery Point

shall be the maximum Recourse Rate. Furthermore, Shipper shall have the right

to utilize all other Delivery Points as Secondary Delivery Points, except that

a request for service at a Secondary Delivery Point shall be scheduled as a

request for service at an uniform hour flow rate without regard to Shipper's

MHQ; provided, however, that Transporter shall honor Shipper's MHQ at a

Secondary Delivery Point if doing so will not interfere with the provision of

any other service request on the system.