Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 370 Original Sheet No. 370 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(3) the applicable rate of interest calculated in accordance

with Section 154.501(d) of the FERC's Regulations.

(b) Suspension of Service. If such failure to pay continues for

thirty (30) Days after payment is due, Transporter, in addition to any other

remedy it may have under the Gas Transportation Contract, may:

(1) discontinue service for self-implementing transactions

without FERC approval; and/or

(2) after any required application to and authorization by the

FERC, suspend further transportation of Gas until such amount is paid.

(30) additional Days, Transporter may thereafter, in addition to any other

remedy it may have under the Gas Transportation Contract, terminate said

Contract in accordance with the provisions of Section 20.6 herein.

15.5 Disputed Bills.

(a) If Shipper in good faith disputes the amount of any bill or part

thereof and pays to Transporter such amounts as it concedes to be correct, and

at any time within thirty (30) Days after a demand made by Transporter

furnishes good and sufficient surety bond guaranteeing payment to Transporter

of the amount ultimately found due upon such bills after a final determination

which may be reached either by agreement or judgment of the courts, as may be

the case, then Transporter shall not be entitled to seek to suspend further

delivery of Gas nor terminate the Gas Transportation Contract as outlined

above unless and until default be made in the conditions of such bond.

(b) In the event of a dispute concerning any billing or statement,

payment shall nevertheless be made for such amounts as it concedes to be

correct, as provided in Section 15.2 but such payment shall not be deemed to

be a waiver of any rights to recoup any amounts in dispute. Such payment must

be accompanied by a statement of the disputed amounts, the reason for the

dispute and the amounts not in dispute. Any billing or statement of volumes

or allocations tendered pursuant to this Section 15, or the measurement data

associated therewith, shall be disputed, if at all, within six (6) months from

the end of the month for which such billing or statement has been rendered,

otherwise such billing or statement and associated measurement data shall be

conclusively deemed to be correct. This restriction does not apply in the

event of a deliberate