Portland Natural Gas Transmission System

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index



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

Original Sheet No. 363 Original Sheet No. 363 : Effective






12.1 Notice of Contract Expiration. For each firm Gas Transportation

Contract of one year duration or longer at the maximum rate, Transporter

shall, six (6) Months prior to the expiration of the contract, or as soon as

possible after an earlier termination, post notice of the expiration on its

Interactive Internet Website and solicit bids for the capacity represented by

the Gas Transportation Contract. Such notice shall be displayed on the

bulletin board no less than one (1) Month. Transporter may require bidders to

make assurances that offers are bona fide by making cash deposits or posting

bonds or letters of credit.


12.2 Abandonment of Transportation Service. Subject to the terms of this

Section 12, Transporter shall be entitled to abandon long-term (greater than

twelve (12) Months) firm transportation service, as authorized by Section

284.221(d) of the Commission's Regulations, upon the termination, or the

expiration of the term (including the expiration of any applicable contract

extension provisions), of a long-term firm Gas Transportation Contract, and

Transporter shall seek offers from competing Shippers interested in receiving

such firm transportation service. If termination is caused by a failure of

Shipper to perform any of the material covenants or obligations imposed upon

it by the Gas Transportation Contract, Transporter shall be entitled to

abandon service immediately upon termination.


12.3 Right of First Refusal. Transporter shall not be required to accept

any bid at less than Transporter's maximum Recourse Rate. If Transporter

receives no bids, or if Transporter receives no bids at its maximum Recourse

Rate and Transporter determines not to accept any bids below the maximum

Recourse Rate, Transporter shall notify the Shipper of the maximum bid

received, or that no bids were received. If Transporter receives a bid at a

maximum Recourse Rate, or if it accepts any bid below the maximum Recourse

Rate, Transporter shall, no less than four (4) Months before the expiration of

the Shipper's firm Gas Transportation Contract, or no more than four (4)

Months after an earlier termination, inform Shipper of the offer to purchase

capacity solicited pursuant to Section 12.1 herein that Transporter intends to

accept. Transporter's