Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

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

Original Sheet No. 245 Original Sheet No. 245 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19. NEGOTIATED RATES (Continued)

(2) Bids on Posted Capacity. If available capacity,

including capacity under expiring or terminating service

agreements, is posted for bid pursuant to Section 25.2 of

the General Terms and Conditions and Transporter has

determined that it is willing to consider bids at Negotiated

Rates, Transporter must specify in its posting that it will

consider Negotiated Rate bids in addition to Recourse Rate

and discounted Recourse Rate bids.

19.3 Evaluation of Negotiated Rate Bids. If Transporter determines

that it is willing to consider Negotiated Rate bids for available

capacity that is posted pursuant to Section 25.2 of the General Terms

and Conditions or deferred exchange service that is posted pursuant to

Section 2.2 of Rate Schedule DEX-1, Transporter will state in its

posting the specific basis on which Negotiated Rate bids will be

considered and one of the following evaluation methods for determining

the winning bid:

(a) Net Present Value (reservation rate x quantity x term,

discounted using the discount rate(s) shown in the posting);

(b) Revenue (reservation rate x quantity); or

(c) Reservation Rate/Deferred Exchange Rate.

If Transporter specifies in its posting that it will accept

Negotiated Rate bids tied to an index or indices, Transporter will post

an assumed value for such index or indices, where such assumed value is

based on both historical and projected index prices. This assumed value

will be used to compare Negotiated Rate bids with Recourse Rate and

discounted Recourse Rate bids; provided, however, that if a Shipper with

a Negotiated Rate bid tied to an index or indices has submitted the bid

with the highest value and is awarded the capacity, such Shipper will

pay according to the actual value of the index or indices at the time

service is rendered.

Negotiated Rate bids in excess of Transporter's Maximum Base

Tariff Rate for the applicable rate schedule will be treated as maximum

rate offers for bid evaluation purposes.

19.4 Filing Requirement. Transporter will submit to the Commission a

tariff sheet stating the name of the Shipper, the Negotiated Rate, the

rate schedule, the receipt and delivery points, and the contract

quantities applicable to any Negotiated Rate service agreement. Unless