Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 378 Original Sheet No. 378 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

20. LIABILITY AND REMEDIES

20.1 Relief from Liability. Neither Transporter nor Shipper shall be

liable in damages to the other for any act, omission or circumstances,

including any curtailment or interruption, occasioned by or in consequence of

any event constituting Force Majeure and, except as otherwise provided in

Section 20.2 herein, the obligations of Transporter and Shipper shall be

excused during the period thereof to the extent affected by such events of

Force Majeure. Neither Transporter nor Shipper shall be liable in any manner

to the other person for indirect, consequential or special losses or damages

including attorneys' fees. There are no intended, incidental or third-party

beneficiaries under this Tariff or any contract thereunder.

20.2 Liabilities not Relieved. Notwithstanding the provisions of

Section 20.1 herein, the party claiming a Force Majeure event with respect to

its performance under a Gas Transportation Contract:

(a) shall not be relieved of its obligation to make payments of

amounts then due thereunder or its obligation to pay the applicable

reservation charge thereunder during any event constituting Force Majeure;

(b) shall not be relieved of liability in the event of its

negligence, or its failure to use due diligence, in remedying the Force

Majeure situation and removing the cause in an adequate manner and with all

reasonable dispatch; and

(c) shall not be relieved of liability if it fails to give

notice and a full explanation of the Force Majeure event in writing to the

other party as soon as possible after the event.

20.3 Overriding Obligation to Pay Reservation Charges. Shipper's

obligation to pay applicable reservation charges under a Gas Transportation

Contract shall not be suspended by any failure of Transporter to deliver Gas

to or on behalf of Shipper for any reason or cause whatsoever, whether or not

described in this Section 20, except in the event that such failure is caused

by the negligent or intentional misconduct of Transporter.