Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 572 Original Sheet No. 572 : Effective

ARTICLE I - SCOPE OF CONTRACT

1. On the Commencement Date and each Day thereafter on which Shipper and

Transporter schedule Gas for transportation hereunder, Shipper shall cause the

Scheduled Quantity, up to the Maximum Daily Quantity (MDQ), to be delivered to

Transporter at the Receipt Point(s) designated on Schedule 1 hereto.

Shipper's tender of Gas shall be at uniform rates over a twenty-four hour

period to the extent practicable.

2. On the Commencement Date and each Day thereafter, Transporter shall make

the Scheduled Quantity, up to the Maximum Hourly Quantity (MHQ), available to

or on behalf of Shipper at the Delivery Point(s) designated on Schedule 2

hereto on a firm hourly basis.

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. Subject to the provisions of Rate Schedule HRS, the General Terms and

Conditions of Transporter's FERC Tariff, and the terms and conditions of this

Contract, 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 the Primary 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. Subject to the provisions of Rate Schedule HRS, the General Terms and

Conditions of Transporter's FERC Tariff, and the terms and conditions of this

Contract, Transporter shall make available to Shipper the service reserved

under this Article II on the Days and Hours, and for the MDQ and MHQ for which

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

and conditions of this Contract.

ARTICLE III - RATE

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

Section 3, of Rate Schedule HRS; 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