Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 325 Original Sheet No. 325 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

confirmations by Transporter from upstream and downstream connected parties;

9:00 p.m. for Transporter to provide Scheduled Quantities to affected Shippers

and point operators (all listed time are Central Clock Time on the Day of gas

flow). Scheduled Quantities resulting from Intraday-2 Nominations should be

effective at 9:00 p.m. Central Clock Time on the Day of gas flow. Bumping is

not allowed during the Intraday-2 Nomination Cycle.

7.3 Measurement Variance.

Shipper shall receive or cause the applicable Measurement Variance

Quantity to be furnished in kind each Month. If necessary, Transporter shall

use the applicable Measurement Variance Factor to adjust a Shipper's

Scheduled Quantities, or to calculate the Measurement Variance Quantity that a

Shipper may tender at the applicable Receipt Point in lieu of an adjustment to

the Scheduled Quantity. In no instance shall the Measurement Variance

Quantity be less the one (1) DTH.

7.4 Allocation of Capacity.

(a) On each Day Transporter shall determine with respect to all

Gas Transportation Contracts:

(1) the total quantities which all Shippers have nominated

to be received on that Day;

(2) the total quantities which all Shippers have nominated

to be delivered on that Day; and

(3) Transporter's capacity available in each pipeline

Segment to perform all of the nominated services.

(b) If due to any cause whatsoever Transporter is unable, on any

Day, to satisfy all Nominations for service through any pipeline Segment

pursuant to the procedures in Section 7.1 above, then Transporter shall

allocate available service in the constrained Segment according to the

following allocation procedure: