Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-686-000, Status: Effective

First Revised Sheet No. 346 First Revised Sheet No. 346

Superseding: Original Sheet No. 346

GENERAL TERMS AND CONDITIONS (Continued)

Transporter shall post notice of that emergency on its Interactive

Internet Website as soon as possible. Transporter shall make all reasonable

efforts to facilitate voluntary releases of capacity from one shipper to

another at negotiated rates in order to remedy the emergency capacity

curtailment. In the event of an emergency of which Transporter has been

notified in accordance with this Section, where two Shippers have negotiated a

pre-arranged agreement to release capacity to remedy the emergency, the

Releasing Shipper need not post a Release Notice or comply with the bidding

and allocation requirements applicable to pre-arranged transactions set forth

in Sections 11.6 through 11.10 herein. The Releasing Shipper shall notify

Transporter of the terms of the proposed pre-arranged release transaction in

writing or via Transporter's Interactive Internet Website as soon as possible,

but in no event later than twenty-four (24) hours after reaching an agreement

to release capacity. 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 have two (2) Business Days to execute the

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

emergency agreement on its Interactive Internet Website as soon as possible,

but in no event later than forty-eight (48) hours after the commencement of

the emergency release transaction.

Shippers are encouraged to reach agreements among themselves in

advance of emergencies to cover capacity releases in the event an emergency

should occur. The terms of such advance agreements may be posted on

Transporter's Interactive Internet Website at any time in advance of the

emergency.

11.6 Notice by Releasing Shipper of its Election to Release Capacity.

Any Releasing Shipper that elects to release all or a portion of its firm

capacity rights shall provide Transporter with a Release Notice in writing or

via Transporter's Interactive Internet Website. Any terms and conditions

listed in the Release Notice must be non-discriminatory and consistent with

Transporter's Tariff and the Gas Transportation Contract with the Releasing

Shipper.

(a) Timeline for Capacity Releases. The capacity release timeline set

forth in this Section 11.6 is applicable to all parties involved in the

capacity release process; however, in accordance with WGQ Standard 5.3.1,

Version 1.8, it is only applicable if:

1) all information provided by the parties to the transaction is valid and the

Replacement Shipper has been determined to be creditworthy before the capacity

release bid is tendered, and

2) there are no special terms or conditions of the release.