Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 226 Original Sheet No. 226 : Effective

RATE SCHEDULE HRS (cont.)

Hourly Reserve Service

4.5 Shipper shall elect the MHQ for Shipper's Gas at the Primary Delivery Point

at the time its request for Transportation Service is submitted to Transporter

pursuant to Section 3 of the General Terms and Conditions. Such election may

not include more than one MHQ at a Primary Delivery Point. Such MHQ shall

reflect deliveries at Maximum Hourly Flow Rates of 1/24th, 1/20th, 1/16th,

1/14th, or 1/12th of MDQ. Such election by Shipper will be set forth in the

Agreement. 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.

5. COMMISSION AND OTHER REGULATORY FEES

Shipper will reimburse Transporter for any separately stated fees required by

the Commission or any other federal or state regulatory body.

6. 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.