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. 355 Substitute First Revised Sheet No. 355

Superseding: Original Sheet No. 355

GENERAL TERMS AND CONDITIONS (Continued)

Revenue. In the event two or more bids provide the same highest present

value, rate, or net revenue, the bid methodology to be chosen by the

Replacement Shipper, the Releasing Shipper has not specified a different

method for breaking ties, and none of those successful bids states that the

bidder is unwilling to accept proration of the released capacity in the event

of a tie, the capacity released will be prorated among the Successful Bidders

as follows:

(1) If all successful bids are for the full amount of released

capacity, the released capacity will be allocated pro-rata to the Successful

Bidders; and

(2) If any or all successful bids are for less than the full amount of

released capacity, then the released capacity will be awarded, best bid first,

until all offered capacity is awarded, conditioned upon the bids meeting the

minimum terms of the Release Notice.

In the event that any Successful Bidder has stated in its bid that it is

unwilling to accept a prorated part of the release capacity in the event of a

tie; or fails to satisfy the criteria set forth in Section 11.11 herein; then

the uncommitted capacity will be allocated to the other Successful Bidder(s)

in accordance with the applicable proration procedures.

(d) Failure to Execute a Gas Transportation Contract for Firm Service. In the

event the Successful Bidder fails to execute a Gas Transportation Contract for

firm service within the time frame set forth in Section 11.12, and the

Releasing Shipper does not at that time withdraw the Release Notice,

Transporter will offer the released capacity to the bidder(s) who submitted

the next highest bid(s) in accordance with the criteria specified in Section

11.9 or 11.10 herein, while meeting all other minimum terms of the Release

Notice.