Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 561 Original Sheet No. 561 : Effective

B. Subject to Rate Schedule FT-FLEX on the Commencement Date and each Day

thereafter on which Transporter schedules Gas for transportation hereunder,

Shipper shall cause such quantity, up to the Maximum Daily Quantity (MDQ), to

be delivered to Transporter at the Receipt Point(s), and Transporter shall

make such quantity available to or on behalf of Shipper at the Delivery

Point(s) unless Transporter elects not to schedule such service pursuant to

paragraph 2 (d) of Transporter's Rate Schedule FT-FLEX service.

C. 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

A. Subject to the provisions of Rate Schedule FT-FLEX, 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.

B. Subject to the provisions of Rate Schedule FT-FLEX, 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 - RATE

For each Month, Shipper agrees to pay the rates and charges specified in

Article 3 (a)-(b), of Rate Schedule FT-FLEX; provided however, that in the

event that Transporter determines, in its sole discretion or otherwise

pursuant to this Contract, to render service on behalf of Shipper for a

discounted or negotiated reservation and/or usage rate, Transporter shall

notify Shipper in writing of the amount of such discounted or negotiated rate,

the Day(s) on which such rate shall be in effect and the quantities of which

such rate applies. For each DTH of the Maximum Contract Demand to which a

discounted or negotiated reservation and/or usage rate applies, as set forth

in Transporter's notice, Shipper agrees to pay and shall pay the applicable

discounted or negotiated reservation and/or usage rate in lieu of the maximum

reservation and/or usage rate.