Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 351 Original Sheet No. 351 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(3) the maximum and minimum quantity of firm capacity, which the

Releasing Shipper elects to release stated in DTH per Day;

(4) the Receipt and Delivery Point(s) at which the Releasing Shipper

will release capacity and the firm capacity to be released at such points;

(5) whether the capacity will be released on a firm or recallable

basis, whether the recalled capacity can be reput and, the specifics of any

recall rights;

(6) the requested effective date and term of the release;

(7) the reservation rate the Prearranged Replacement Shipper has

agreed to pay, including any reservation-type surcharges, for the released

capacity;

(8) the length of time (subject to the minimum and maximum posting

periods set forth in Section 11.7 herein) for which the offer to release

capacity shall be placed on Transporter's Interactive Internet Website before

Transporter closes the capacity bidding process;

(9) any non-discriminatory, economic criteria for evaluating bids that

the Releasing Shipper wishes Transporter to apply in place of the highest

Present Value;

(10) any non-discriminatory method for breaking ties that the

Releasing Shipper wishes Transporter to apply in place of the pro-rata

allocation method set forth in Section 11.9(c) herein;

(11) the maximum reservation rate, including any reservation-type

surcharges, that can be charged for the release;

(12) whether the Releasing Shipper is willing to accept contingent

bids and, if so, the terms on which such bids will be evaluated, the time

period in which the Successful Bidder must remove the contingency, and

whether, or for what time period, the next highest bidder would be obligated

to acquire the capacity should the winning contingent bidder exercise its

option not to take the capacity;

(13) whether the Releasing Shipper will accept bids on a volumetric or

one-part basis, and, if so, how it will evaluate and compare volumetric or

one-part bids with other bids;