Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 08/01/2010, Docket: RP10-885-000, Status: Effective

Second Revised Sheet No. 303 Second Revised Sheet No. 303

Superseding: Original Sheet No. 303

GENERAL TERMS AND CONDITIONS (Continued)

2.15 General Terms and Conditions: shall mean the General Terms and

Conditions of this Tariff, as they may be amended from time to time.

2.16 Hour: Shall mean a period of sixty consecutive minutes beginning

at the top of any hour, e.g., 9:00.

2.17 Intra-day Nomination: shall mean a Nomination submitted after the

deadline which effective time is no earlier than the beginning of the gas Day

and runs through the end of that gas Day. Intra-day Nominations may be used

to nominate new supply or market. Shippers receiving service under any of

Transporters rate schedules may make Intra-day Nomination which can be used to

request increases or decreases in total flow, changes to Receipt Points, or

changes to Delivery Points of scheduled gas for less than one Day. Intra-day

Nominations shall be stated in daily quantities, indicating the revised total

flow for the 24 hour period commencing at 9:00 am Central Clock Time, and

shall include an effective date and time. Such Nominations do not replace the

remainder of a standing Nomination which may extend past that gas Day.

2.18 Loan Point: shall mean the location where Transporter delivers

Gas to Shipper for Loan Service.

2.19 Loaned Quantity: shall mean the quantity of Gas delivered by

Transporter to Shipper at the Loan Point for loan service.

2.20 Maximum Contract Demand: shall mean the sum of the Receipt Point

Maximum Daily Quantity or Quantities, as set forth in an executed Gas

Transportation Contract under Rate Schedule FT.

2.21 Maximum Daily Quantity or MDQ: shall mean the maximum number of

DTH (adjusted by the applicable Measurement Variance Quantity), specified in a

Gas Transportation Contract in accordance with one or more Rate Schedules

herein, that Transporter is obligated to transport Daily for Shipper to a

specified Delivery Point or from a specified Receipt Point. Nothing in this

definition is intended to conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28

and 1.3.31.

2.22 Maximum Hourly Flow Rate: shall mean the percentage of MDQ at a

Primary Delivery Point that Transporter shall be obligated to deliver on

behalf of Shipper on a firm basis during any hour and shall be expressed as

the quotient of MHQ divided by MDQ.

2.23 Maximum Hourly Quantity or MHQ: shall mean the greatest number

of Dekatherms that Transporter is obligated to deliver at a Primary Delivery

Point to or on behalf of Shipper, on a firm basis, for any Hour.

2.24 Mcf: shall mean 1,000 Cubic Feet of Gas.

2.25 Measurement Variance Quantity: shall mean the product, rounded to

the nearest DTH, of the applicable Measurement Variance Factor and the Receipt

Point Scheduled Quantity in the case of a positive Measurement Variance

Factor, or the Delivery Point Scheduled Quantity in the case of a negative

Measurement Variance Factor. Nothing in this definition is intended to

conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28 and 1.3.31.

2.26 Measurement Variance Factor: shall mean the applicable

percentage, determined on a Monthly basis pursuant to this Section 2.26, to

account for and recover lost and unaccounted-for gas on the System. The

Monthly percentages shall be within the minimum and maximum percentages set

forth on the currently effective Sheet Nos. 100-102 of this Tariff for the

applicable Rate Schedule. At least ten (10) days prior to the beginning of

each Month, Transporter will publish the Measurement Variance Factor via its

Interactive Internet Website. Nothing in this definition is intended to

conflict with WGQ Standards 1.3.15, 1.3.16, 1.3.28 and 1.3.31. The Monthly

Measurement Variance Factor shall be calculated in the following manner: