Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 311 Original Sheet No. 311 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(1) that Shipper has title or will enter into all contractual

agreements necessary to acquire title to the Gas for which transportation is

requested; and

(2) that Shipper has or will enter into all contractual

agreements necessary to ensure that all upstream and downstream transportation

is in place prior to the date on which service is requested to commence.

(f) Facilities. Identification and location of any facilities to be

constructed or installed by any party which are necessary for receipt of Gas

by Transporter or for delivery to and/or utilization of Gas by the Shipper or

direct or indirect customers of the Shipper.

(g) Rate. Percentage of the maximum effective rate under the

applicable Rate Schedule which Shipper is willing to pay or a negotiated rate

which Shipper is willing to pay. Transporter shall not be obligated to accept

any bid or execute a Gas Transportation Contract at a rate less than the

maximum rate allowable under such Rate Schedule(s) or effective tariff sheet.

Agents. Shipper shall identify all parties whom Shipper intends to act as its

agent, and shall provide Transporter with sufficient information, as

requested, to verify that such agent is authorized, willing and able to act in

that capacity. Changes in agent designation shall be submitted by Shipper to

Transporter in a fashion similar to original requests for service.

3.4 Credit Information.

(a) General. At Transporter's request, Shipper shall provide the

following information to Transporter, for evaluation of such Shipper's

creditworthiness:

(1) A complete set of its most recent audited financial

statements and interim financial statements since audit date, most recent

annual report, all filings with the Securities and Exchange Commission within

the past twelve (12) Months, including the most recent Forms 10-K and 10-Q,

and applicable annual filings with other regulatory agencies. If audited

financial statements are unavailable, Shipper shall provide the most recent

unaudited financial statement along with an attestation by its Chief Financial

Officer that the information reflected in the unaudited statements is a true,

current and fair representation of the Shipper's financial position.