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. 358 Substitute First Revised Sheet No. 358

Superseding: Original Sheet No. 358

GENERAL TERMS AND CONDITIONS (Continued)

marketing fee assessed in relation to the released capacity.

(d) Unless Transporter agrees in writing otherwise, the Releasing Shipper

shall remain liable for the maximum reservation charge(s), any other fixed

charges associated with the released capacity and any late charges resulting

from the Replacement Shipper's failure to pay Replacement Reservation

Charge(s).

(e) Bidders may bid for released firm capacity by submitting bids up to: (1)

the maximum Recourse Rate reservation charge under the applicable Rate

Schedule for release terms of greater than one year; or (2) any rate for

capacity releases of one year or less, plus any fees and/or charges that would

have been paid by Releasing Shipper.

11.15 Fees.

When a Releasing Shipper reaches an agreement with Transporter to actively

market its released capacity (beyond simply posting release information on

Transporter's Interactive Internet Website), the Releasing Shipper shall pay

the fee for such service negotiated by Transporter and Releasing Shipper.

11.16 Replacement Shipper Billing and Payment. Transporter shall directly

bill the Replacement Shipper for the released capacity it has acquired and for

any other applicable charges in accordance with this Section. The Replacement

Shipper shall pay the billed amounts directly to Transporter in accordance

with the General Terms and Conditions (including Section 15.4 herein), and in

accordance with its Gas Transportation Contract.

11.17 Releasing Shipper Crediting and Billing.

(a) Crediting. At the same time Transporter bills the Replacement Shipper

pursuant to Section 11.16 herein, the Releasing Shipper shall receive a credit

representing the reservation charge billed to the Replacement Shipper, minus

all applicable fees described in Section 11.15 herein.

(b) Delinquency of Replacement Shipper. In the event the Replacement Shipper

fails to pay its bill by the date payment is due: