Portland Natural Gas Transmission System

Second Revised Volume No. 1

Effective Date: 08/01/2010, Docket: RP10-885-000, Status: Effective

First Revised Sheet No. 503 First Revised Sheet No. 503

Superseding: Original Sheet No. 503

3. Shipper shall be solely responsible for securing faithful

performance by gas supplier(s) and/or any applicable upstream or downstream

shippers and transporters in all matters which may affect Transporter's

performance hereunder, and Transporter shall not be liable hereunder to

Shipper as a result of the failure of gas supplier(s) and/or any applicable

upstream or downstream shippers and transporters to so perform.

ARTICLE II - RESERVATION OF FIRM TRANSPORTATION CAPACITY

1. Shipper hereby reserves the right to cause Transporter to receive

from or for the account of Shipper at each Receipt Point on any Day such

quantities of Gas up to the MDQ for such Receipt Point as set forth on the

currently effective Schedule 1 appended hereto and Transporter shall make

available to or on behalf of Shipper at each Delivery Point on any Day such

quantities of Gas up to the MDQ for such Delivery Point as set forth on the

currently effective Schedule 2 appended hereto. Schedules 1 and 2 are hereby

incorporated as part of this Contract.

2. Transporter shall make available to Shipper the service reserved

under this Article II on the Days and for the quantities of Gas for which such

service has been reserved, subject to Shipper's compliance with the terms and

conditions of this Contract.

ARTICLE III - ALLOCATION OF OFF-PEAK CAPACITY

On any Day during the period from April 1 through October 31 that

System Capacity is not otherwise scheduled under any Rate Schedule, such

capacity will be allocated pro rata to Rate Schedule FT Shippers whose Gas

Transportation Contracts have initial terms of twenty (20) Years or longer,

based on these Shippers' annual reservation charges under Rate Schedules FT.

ARTICLE IV - RATE

1. For each Month, Shipper agrees to pay the Recourse Usage Rate, or

a negotiated usage rate mutually agreed to in writing by Shipper and

Transporter, multiplied by the sum of the Delivery Point Scheduled Quantity or

Quantities during such Month; provided, however, that in the event that

Transporter determines, in its sole discretion on a basis that is not unduly

discriminatory, or otherwise pursuant to this Contract, to render service on

behalf of Shipper for a discounted usage rate, Transporter shall notify

Shipper in writing of the amount of such discounted usage rate, the Day(s) on

which such rate shall be in effect and the quantities to which such rate

applies. For each DTH of Scheduled Quantity to which a discounted usage rate

applies, as set forth in Transporter's notice, Shipper agrees to pay and shall

pay the applicable discounted usage rate in lieu of the maximum usage rate.