Portland Natural Gas Transmission System

Second Revised Volume No. 1

Effective Date: 03/01/2009, Docket: RP09-338-001, Status: Effective

Substitute First Revised Sheet No. 344 Substitute First Revised Sheet No. 344

Superseding: Original Sheet No. 344

GENERAL TERMS AND CONDITIONS (Continued)

Replacement Shipper pursuant to the same terms and conditions that apply to a

Releasing Shipper. This Section is also applicable to offers by Shippers to

assume or acquire capacity pursuant to Section 11.13 herein.

11.4 Minimum and Maximum Release Provisions. The following minimum

and maximum release provisions shall apply. The maximum term of any release

of firm capacity shall not exceed the remaining term of Releasing Shipper's

Gas Transportation Contract. Any release of capacity must be of an amount

that can be reasonably accurately measured. The maximum quantity released may

not exceed on a Daily basis or over the remaining term of the Replacement

Shipper's Gas Transportation Contract the maximum capacity to which the

Releasing Shipper has right under its Gas Transportation Contract.

11.5 Exceptions to Release Notice, Bidding and Allocation Requirements

of this Section. In the following situations, the Releasing Shipper will not

be required to post a Release Notice or to comply with the bidding and

allocation requirements of Sections 11.6, 11.7, 11.8 and 11.9 herein:

(a) Capacity Release to Prearranged Replacement Shippers for Thirty-

One (31) Days or less. If a Releasing Shipper has found a Prearranged

Replacement Shipper willing to acquire released capacity for a term equal to

or less than thirty-one (31) Days, the Releasing Shipper may, but need not,

post a Release Notice or comply with the bidding and allocation requirements

of this Section. The Releasing Shipper shall notify Transporter of the terms

of the proposed release transaction in writing or via Transporter's

Interactive Internet Website as soon as possible, but in any event no later

than twenty-four (24) hours after it has found such Prearranged Replacement

Shipper. The Releasing Shipper's Notice to Transporter shall include all

information listed in Section 11.6(c)(1)-(7), as well as any other relevant

terms of the proposed release transaction. If applicable, Transporter shall

verify the creditworthiness of the Prearranged Replacement Shipper in

accordance with this Tariff. As soon as these provisions are satisfied,

Transporter shall make available a Gas Transportation Contract to the

Prearranged Replacement Shipper and a Capacity Release Agreement to the

Releasing Shipper, which shall then have two (2) Business Days to execute the

agreements. Transporter shall post a notice describing the terms of the

release transaction on Transporter's Interactive Internet Website as soon as

possible, but in no event later than forty-eight (48) hours after the

commencement of the release transaction.

Unless the released capacity otherwise qualifies for an exception to the

capacity release notice, bidding, and allocation requirements under this

Section 11.5, Releasing Shipper shall not rollover, extend or in any way

continue any release subject to Section 11.5(a) until 28 days after the

initial release period has ended, unless it posts a Release Notice and follows

the bidding and allocation