Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Substitute Original Sheet No. 345A Substitute Original Sheet No. 345A

GENERAL TERMS AND CONDITIONS (Continued)

(d) Capacity Releases to an Asset Manager pursuant to an Asset

Management Arrangement. If a Releasing Shipper has found a Prearranged

Replacement Shipper acquiring capacity pursuant to an Asset Management

Arrangement, the Releasing Shipper 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. 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, including an indication that the release is being

completed pursuant to an Asset Management Arrangement. Transporter shall post

notice of the terms of the proposed accepted release on its Interactive

Internet Website as soon as possible, but in no event later than the first

nomination after the release truncation commences, and will 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.

(e) Emergency Capacity Releases. In the event that:

(1) Transporter has an emergency on its System, which would

otherwise cause it to curtail service to one or more Shippers under Section 10

herein; or

(2) a Shipper notifies Transporter that it faces an emergency

situation that requires or will require it to obtain alternative

transportation capacity on the System;