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. 357 Substitute First Revised Sheet No. 357

Superseding: Original Sheet No. 357

GENERAL TERMS AND CONDITIONS (Continued)

11.13 Offers to Assume or Acquire Capacity. Any Shipper that wishes to assume

or acquire capacity on the System may request Transporter to post a notice of

its offer to acquire capacity on Transporter's Interactive Internet Website.

The offering Shipper shall provide Transporter with the following information

about its offer to purchase capacity:

(a) the offering Shipper's legal name;

(b) the amount of firm Daily capacity sought stated in DTH;

(d) the proposed effective date and term of the proposed capacity release

transaction;

(e) the maximum rate acceptable;

(f) the length of time the Notice should remain on Transporter's Interactive

Internet Website; and

(g) any other relevant terms.

Within one (1) Business Day, Transporter shall determine whether the offer to

acquire capacity is consistent with the terms of this Tariff and Transporter's

Gas Transportation Contracts, and, if there are no deficiencies, shall post

notice of the offer to acquire capacity on its electronic bulletin board for

the length of time specified by the offering Shipper, up to a maximum of eight

(8) weeks. If this notice results in an agreement to assign capacity, the

provisions of this Section relating to capacity releases to Prearranged

Replacement Shippers shall apply.

11.14 Rates.

(a) The rate charged for any released firm capacity with a release term of

greater than one year shall be the rate set forth in the Gas Transportation

Contract entered into between Transporter and the Replacement Shipper, but in

no event more than the sum of Transporter's currently effective maximum

Recourse Rate reservation charge and usage charge under the applicable Rate

Schedule plus any fees and/or charges that would have been paid by Releasing

Shipper.

(b) The rate charged for any released firm capacity with a release term of one

year or less shall be the rate set forth in the Gas Transportation Contract

entered into between Transporter and the Replacement Shipper. No rate

limitation shall apply to any capacity releases with terms of one year or

less.