Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 372 Original Sheet No. 372 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

16. COST REIMBURSEMENTS

16.1 Reimbursable Costs. Shipper shall reimburse Transporter for the

following costs, to the extent that they are attributable to Shipper:

(a) Except as provided by Section 6.2 herein, the costs of any

facilities, other than System facilities, installed by Transporter with

Shipper's consent to receive, measure, transport or deliver Gas for the

account of Shipper;

(b) Filing fees required in connection with the Gas

Transportation Contract(s) that Transporter is obligated to pay to the FERC or

any other governmental authority having jurisdiction, less generally

applicable regulatory fees necessary for rendition of Transporter's service

generally to all customers;

fees similar in nature or equivalent in effect which are now or hereafter

imposed or assessed against Transporter by any lawful authority as a result of

the transportation of Gas pursuant to the Gas Transportation Contract(s), and

which the FERC has determined, after a Section 4 rate filing, to be directly

assignable to the specific service to be rendered by Transporter on behalf of

Shipper thereunder; and

(d) Any and all overrun costs including:

(1) costs incurred by Transporter to correct the effect of any

tampering with or alteration of Transporter's facilities which permitted an

overall overrun to occur at the affected Delivery Point and the costs incurred

by Transporter to repair such facilities;

(2) costs incurred by Transporter to acquire additional Gas to

prevent or alleviate curtailments and to reestablish appropriate operating

pressure on its System;

(3) penalties paid by Transporter to third parties; and

(4) costs incurred by Transporter to collect overrun penalties.