Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 375 Original Sheet No. 375 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

18. WARRANTY OF TITLE AND POSSESSION OF GAS

18.1 Warranty.

(a) Title to all Gas tendered to Transporter at the Receipt Point(s)

for transportation shall be held by Shipper free and clear of liens,

encumbrances and adverse claims of any kind. Transporter hereby expressly

disclaims that it has or will have title to any Gas to be transported to or on

behalf of Shipper.

(b) If Shipper's title or right to deliver Gas to be transported is

questioned or involved in any action, Shipper shall not qualify for nor be

eligible to continue to receive service until such time as Shipper's title or

right to deliver is free from question; provided, however, Transporter shall

allow Shipper to qualify for or continue receiving service under this Tariff

if Shipper furnishes a bond satisfactory to Transporter.

18.2 Indemnification as to Warranted Gas. Shipper shall indemnify

Transporter and save it harmless from all suits, actions, debts, accounts,

damages, costs, losses, and expenses arising from or out of claims of any or

all persons to the Gas warranted in Section 18.1, and claims of any or all

persons to royalties, taxes, license fees or charges thereon resulting from

breach of said warranty.

18.3 Control and Possession. Transporter shall be deemed to be in

control and possession of the Gas deliverable pursuant to a Gas Transportation

Contract, from the time it is received by Transporter at the Receipt Point(s)

until it shall have been made available to or for the account of Shipper at

the Delivery Point(s). Prior to the time Gas is received by Transporter at

the Receipt Point(s) and after such Gas is made available to or for the

account of Shipper at the Delivery Point(s), Shipper shall be deemed to be in

control and possession thereof.

18.4 Responsibility.

(a) Shipper shall have no responsibility:

(1) with respect to any Gas after it is received by Transporter

at the Receipt Point(s) until it is made available to or on behalf of Shipper

at the Delivery Point(s); or