Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

Effective Date: 01/31/2008, Docket: RP08-130-000, Status: Effective

Original Sheet No. 234 Original Sheet No. 234 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

15. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

Transporter will waive any penalties due to Receiving

Party/Shipper Imbalances which result from errors made by Transporter or

which result from force majeure invoked by Transporter. Transporter

also will waive Receiving Party/Shipper Imbalance penalties for other

good cause, including Transporter's reasonable judgment that Shipper's

actions have not impaired Transporter's ability to provide reliable firm

service. Such waivers will be applied uniformly in a not unduly

discriminatory manner.

15.3 Receiving Party Imbalances and Penalties. If Receiving Party's

cumulative monthly Receiving Party Imbalance is more than 5,000 Dth or 5

percent, above or below total confirmed nominations for that month,

whichever is greater, Transporter shall notify Receiving Party that

Receiving Party Imbalances exceed allowed tolerances. Such notice shall

be provided by the fifteenth day of the month following the month

service is rendered. Transporter will notify Receiving Party of any

Receiving Party Imbalances, and specify whether a penalty situation

exists. Receiving Party will be given 45 non-entitlement days from the

date of notification by Transporter to eliminate any Receiving Party

Imbalances. If at the end of such 45 non-entitlement day period

Receiving Party remains in a penalty situation, Receiving Party shall

pay a penalty to Transporter equal to $10.00/Dth on the imbalance over

the greater of 5,000 Dth or 5%, as described above. Receiving Party

Imbalances shall be cumulative and Receiving Party must specifically

adjust nominations as necessary to eliminate such imbalances.

15.4 Receiving Party Imbalance Netting. Upon Shipper's request,

Transporter will net Receiving Party Imbalances with Receiving Party

Imbalances, and Receiving Party Imbalances with Shipper Imbalances (as

defined in Section 15.7 hereof), between a Shipper's Service Agreements

within an Operational Impact Area. Netting between a Shipper's Service

Agreements, when offsetting a Receiving Party Imbalance with a Shipper

Imbalance, will be limited to a maximum quantity equal to the smallest

imbalance under the agreements being netted. If a Receiving Party fails

to eliminate Receiving Party Imbalances within the allowed period

referenced above, in addition to any penalties applied hereunder,

Transporter shall have the right to adjust nominations, receipts or

deliveries in order to achieve a balance. Receiving Party imbalances

may also be eliminated by trading imbalances between Service Agreements

with third parties as set forth in Section 15.9.