Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

Effective Date: 05/08/2008, Docket: RP08-311-000, Status: Effective

First Revised Sheet No. 237-B First Revised Sheet No. 237-B : Effective

Superseding: Original Sheet No. 237-B

GENERAL TERMS AND CONDITIONS (Continued)

15. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

The penalty credits will be allocated to the Specified Shippers pro rata

in proportion to total revenue excluding surcharges, net of credits from

capacity releases as described in Section 23 of the General Terms and

Conditions, received by Transporter from each and all of the Specified

Shippers for each applicable month. Such penalty credits shall be

reflected as a credit billing adjustment to each March billing for

credits received during the prior calendar year. In the event that such

credit billing adjustments would result in a credit total invoice to any

Shipper, Transporter will refund the credit billing adjustment to the

Shipper by check within 15 days after determination of the amount of the

credit due to the Shipper.

15.7 Shipper Imbalances. At the time Transporter notifies Shippers of

daily confirmations, Transporter will also notify Shippers of any

imbalance resulting from the differences between upstream and downstream

confirmations when either the upstream confirmation and/or downstream

confirmation is for a nomination with an interconnecting pipeline

("Shipper Imbalances").

If a Shipper's cumulative monthly Shipper Imbalance is more than

5,000 Dth or 5 percent, above or below total confirmed nominations for

the month, whichever is greater, the Shipper will have exceeded allowed

tolerances. A Shipper will then have fifteen non-entitlement days from

the date of Transporter's invoice showing a Shipper Imbalance in excess

of allowed tolerances to eliminate such excess imbalance; otherwise,

Shipper will be subject to a Shipper Imbalance penalty as described in

Section 15.10. The fifteen-day period will be extended proportionately

if, and to the extent that, Shipper's failure to eliminate its excess

imbalance is caused by Transporter's inability, due to operating or

force majeure conditions to accommodate Shipper's make-up nominations,

provided such nominations are from Shippers primary receipt point(s). A

Shipper may eliminate Shipper Imbalances by scheduling imbalance gas in

accordance with the procedures outlined in Section 14 hereof.

15.8 Shipper Imbalance Netting. Upon Shipper's request, Transporter

will net Shipper Imbalances with Shipper Imbalances, and Shipper

Imbalances with Receiving Party Imbalances, between its Service

Agreements. 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. Shipper Imbalances may also be eliminated by

trading imbalances with third parties as set forth in Section 15.9.