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. 333 Original Sheet No. 333 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(A) make available at each applicable Receipt Point a

quantity of Gas equal to Shipper's Scheduled Quantity for that Receipt Point;

(B) take at each applicable Delivery Point a quantity

of Gas equal to Shipper's Scheduled Quantity for that Delivery Point;

(C) maintain a balance of deliveries and receipts;

(D) upon notification by Transporter, take appropriate

corrective action in accordance with the provisions of this Tariff; and

(E) coordinate with Transporter any adjustment to receipts and

deliveries which is undertaken, whether or not the adjustment is undertaken

pursuant to notification from Transporter.

8.2 Scheduling Penalty.

(a) Applicability. Transporter may assess against Shipper, for

any day, the greater of the scheduling penalties in accordance with this

Section 8.2, so long as Transporter has notified Shipper that a scheduling

problem has occurred (or will occur absent corrective action having been taken

by Shipper in response to a prior problem that is ongoing, for which notice

was already given by Transporter to Shipper); provided, however, that

Transporter shall not assess a scheduling penalty against Shipper:

(1) in the event Shipper's failure to take corrective action

is caused by Force Majeure conditions as defined in Section 2 of this Tariff;

or

(2) during any period an Operational Balancing Agreement is

in effect at Shipper's Receipt Point and Delivery Point.

(b) Receipt Point Scheduling. If on any Day Shipper delivers a

quantity of Gas to Transporter at any Receipt Point which exceeds or falls

short of the Scheduled Quantity for such Receipt Point by the greater of five

percent (5%) or 400 DTH, then Shipper shall pay to Transporter $1.30 per DTH

for all quantities in excess or which fall short of the Scheduled Quantity by

more than the greater of five percent (5%) or 400 DTH of the Scheduled

Quantity for such Receipt Point.