Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 371 Original Sheet No. 371 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

misrepresentation or omission or mutual mistake of fact. The responding party

to such dispute shall provide any rebuttal claims to the other party within

three months of receipt of notice of dispute. Parties' other statutory or

contractual rights shall not otherwise be diminished by this Section 15.5.

15.6 Adjustment of Bills. If it is determined that at any time or

times Shipper has been overcharged or undercharged under the provisions of the

Gas Transportation Contract and Shipper has actually paid the bills containing

such overcharge or undercharge, then within thirty (30) Days after the final

determination thereof, subject to the limitations in Section 15.5(b) above,

Transporter shall refund the amount of any such overcharge, and Shipper shall

pay the amount of any such undercharge; provided, however, that interest

calculated in accordance with Section 15.4(a) shall apply to any undercharge

not paid and to any overcharge not returned within thirty (30) Days from the

date of Transporter's notification to Shipper of the amount of the undercharge

or overcharge. In the event an error is discovered by Shipper in the amount

billed in any statement rendered by Transporter, such error shall be adjusted

within thirty (30) Days of the final determination thereof provided that claim

therefore shall have been made within six (6) months from the date of the

initial transportation invoice month and seven (7) months from date of Initial

sales invoice with a three (3) month rebuttal period in which such overcharge

or undercharge occurred except claims for government required rate changes.

Parties' other statutory or contractual rights shall not otherwise be

diminished by this Section 15.6.

15.7 Examination of Books. Both Transporter and Shipper have the

right to examine at any reasonable time the books, records and charts of the

other to the extent necessary to verify the accuracy of any statement, chart,

or computation made under or pursuant to the provisions of this Tariff or the

Gas Transportation Contract.

15.8 Third Party Charges. Shipper shall be responsible for delivering

all Gas to, and accepting redelivery of all Gas from, Transporter s system,

and shall be free to contract with third party(s) upstream or downstream of

Transporter's system to achieve such result. If Shipper requests, and

Transporter agrees, that Transporter shall, to provide service to Shipper, use

service which Transporter has contracted for with third party(s) for the

benefit of Shipper, Shipper shall pay Transporter an amount equal to the

charges Transporter is obligated to pay such third party(s), which charges may

include, but are not limited to, reservation and/or usage charges and

surcharges, fuel charges, compression fees, balancing or storage fees,

measurement fees, processing fees, and/or facility charges. Such charges

shall be set forth as separate items on billings rendered to Shipper.