Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

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

Original Sheet No. 257 Original Sheet No. 257 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

21. RECEIPT AND DELIVERY FACILITIES (Continued)

facilities through a facilities reimbursement surcharge

pursuant to Section 21.3(b), Exhibit C to the First Shipper's

and/or Subsequent Shipper's service agreement will be amended

to reduce the rate base underlying the facilities

reimbursement surcharge by the Cost Sharing Adjustment, to be

effective on the in-service date of the expanded facilities.

(ii) If the First Shipper has reimbursed Transporter for the

cost of the facilities through a lump sum payment pursuant to

Section 21.3(a), the Cost Sharing Adjustment will be refunded

to the First Shipper in a lump sum within 45 days following

the in-service date of the expanded facilities. If the

Second Shipper pays its apportioned cost to Transporter in a

lump sum payment and pays related income taxes pursuant to

Section 21.3(a), the portion of the related income taxes

reimbursement attributable to the Cost Sharing Adjustment

also will be included in Transporter's refund to the First

Shipper. Further, if the First Shipper is the passive owner

of the original facilities, its ownership interest will be

reduced proportionate to the lump sum refund consistent with

Section 21.2(b).

21.5 Existing Facilities. If Transporter has previously paid for all or

a portion of receipt or delivery point facilities under a facilities

agreement with Shipper, Shipper will, nevertheless, promptly pay

Transporter for Transporter's remaining net book value of such

facilities, including any related income taxes, when either of the

following events occurs: (1) Transporter's ability to fully recover

such costs is denied in any Section 4 or Section 5 rate proceeding, or

(2) Shipper permanently ceases operations at the end-use point or

receipt point adjacent to where the facilities were installed.

21.6 Waiver of Facilities Reimbursement Policy. Transporter reserves

the right to seek a waiver of the foregoing facilities reimbursement

policy, for good cause shown, during any proceeding before the

Commission instituted under Section 7 of the Natural Gas Act. Nothing

in this policy statement will require Transporter to file an application

for a certificate of public convenience and necessity under Section 7(c)

of the Natural Gas Act or will prohibit Transporter from contesting an

application for service filed pursuant to Section 7(a) of the Natural

Gas Act.