Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 312 Original Sheet No. 312 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(2) If Shipper is part of a consolidated group a copy of such

consolidated group's most recent annual and quarterly interim financial

statements, audited (if available).

(3) A list of all corporate affiliates, parent companies and

subsidiaries.

(4) Any available reports from credit rating and bond rating

agencies.

(5) The most recent rating of Shipper's long-term unsecured

debt securities, by Standard Poor's Corporation, Dominion Bond Rating Service,

or Moody's Investor Service.

(6) A bank reference and at least three (3) trade references.

(7) A statement of the legal composition of the business (i.e.,

corporation, limited partnership, etc.).

(8) A statement of the length of time the business has been in

operation.

(9) Verification that Shipper is not operating under any

chapter of the bankruptcy laws and is not subject to liquidations or debt

reduction procedures under state laws, such as an assignment for the benefit

of creditors, or any informal creditors' committee agreement. In the event

that Shipper is a debtor in possession operating under Chapter 11 of the

Federal Bankruptcy Act, Shipper shall so state. In such event, Shipper's

request for service shall be contingent upon Shipper also providing adequate

assurance that the billing will be paid promptly as a cost of administration

under the federal court's jurisdiction.

(10) Verification that Shipper is not subject to the

uncertainty of pending liquidation or regulatory proceedings in state or

federal courts which could cause a substantial deterioration in its financial

condition, which could cause a condition of insolvency, or the inability to

exist as an ongoing business entity.

(11) Verification that no significant collection lawsuits or

judgments are outstanding which would seriously reflect upon the Shipper's

ability to remain solvent.