Portland General Electric Company

Original Volume No. 1

Effective Date: 12/03/2003, Docket: RP04- 48-000, Status: Effective

Original Sheet No. 44 Original Sheet No. 44 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

7. LIABILITY AND RISK OF LOSS

7.1 Liability for Facilities. Each party assumes full responsibility

and liability arising from the operation of the pipeline and facilities

owned by it and agrees to hold the other party harmless from any

liability of any nature arising from the owning party's installation,

ownership, and operation thereof. Transporter may but shall have no

obligation to odorize gas delivered to Shipper under this tariff nor to

maintain any odorant level.

7.2 Risk of Loss. Except as otherwise provided in the Service

Agreement, risk of loss to the volumes of gas transported shall pass to

Transporter upon delivery to Transporter for Shipper's account and to

Shipper upon delivery by Transporter for Shipper's account.

7.3 Transporter shall not be liable to Shipper for any damages, costs,

or expenses incurred as a result of Shipper’s contracting for

transportation service(s) on Transporter’s facilities.