EXHIBIT 11

NORTHWEST NATURAL GAS COMPANY

Statement re: Computation of Per Share Earnings

(Thousands, except per share amounts)

(Unaudited)

	Three Months Ended Sept. 30,						Nine Months Ended Sept. 30,
	2006			2005			2006		2005
Net income - basic and diluted	$	(9,724	)	$	(8,671	)	$	33,303	$	32,356
Average common shares outstanding - basic		27,556			27,560			27,568		27,564
Stock options		113			70			118		62
Average common shares outstanding - diluted		27,669			27,630			27,686		27,626
Earnings per share of common stock - basic	$	(0.35	)	$	(0.31	)	$	1.21	$	1.17
Earnings per share of common stock - diluted	$	(0.35	)	$	(0.31	)	$	1.20	$	1.17

For the three months and nine months ended Sept. 30, 2006, 9,000 shares and 105,600 shares were excluded, respectively, from the calculation of diluted earnings per share because the effect would have been antidilutive. For both the three and nine month periods ended Sept. 30, 2005, 6,000 shares were excluded from the calculation of diluted earnings per share for this reason.