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. 304 Second Revised Sheet No. 304

Superseding: Original Sheet No. 304

GENERAL TERMS AND CONDITIONS (Continued)

= [Receipts-Deliveries +/- Line Pack Change +/- Accumulated Imbalance]

[Forecasted System Deliveries For The Applicable Month]

Where:

Receipts = Actual measured quantities received by Transporter at Receipt

Point(s) for transportation during the Month ending one Month

prior to the applicable Month ("Measurement Month").

Deliveries = Actual measured quantities made available by Transporter at

Delivery Point(s) during the Measurement Month.

Line Pack The change in line pack quantities in the System that occurred

Change = during the Measurement Month.

Accumulated Any gas (measurement variance) which has been over or under

Imbalance = collected during the Month(s) prior to the Measurement Month.

2.27 Month or Monthly: shall mean the period beginning at 8:00 a.m.

Eastern Time on the first Day of the calendar Month and ending at 8:00 a.m.

Eastern Time on the first Day of the next succeeding calendar Month.

2.28 Nomination: shall mean a transmittal by Shipper to Transporter

electronically of request for receipt and/or delivery of gas for the account

of the shipper for each gas Day that service is desired.

2.29 Operational Balancing Agreement: shall mean an executed agreement

between Transporter and another willing, mutually agreeable, creditworthy

third party that will aggregate the receipt and delivery obligations and

entitlements of one or more Shipper(s) with respect to gas transportation

Nominations, scheduling, dispatching, balancing and related gas receipt or

delivery functions.

2.30 Operator: shall mean an entity other than Transporter, which has

been designated by Transporter to operate the System.

2.31 Parking Point: shall mean the location where the Shipper delivers

Gas to Transporter for parking service.

2.32 Parked Quantity: shall mean the quantity of Gas delivered by

Shipper at the Parking Point for parking service.

2.33 Present Value: shall mean the value produced from the

application of the following formula: