Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

Effective Date: 02/20/2009, Docket: RP09-227-000, Status: Effective

First Revised Sheet No. 262 First Revised Sheet No. 262

Superseding: Original Sheet No. 262

GENERAL TERMS AND CONDITIONS

(Continued)

22.4 CAPACITY RELEASE BIDS (Continued)

6. any affiliation of the releasing shipper involved in

the transaction.

(b) A Releasing Shipper may specify that bids may be

accepted on a volumetric rate basis.

acquired either through separate bids to pay the applicable Demand

and/or Capacity Demand charge(s) or, if released on a volumetric

bid basis, through separate bids to pay for usage on a daily basis

of contract demand withdrawn or vaporized, as applicable, and

storage capacity used.

(d) All bids shall be submitted in amounts which a Replacement

Shipper or Prearranged Replacement Shipper agrees to pay to

Transporter for the right to demand firm services, including

undiscounted reservation surcharges, if applicable. Such bids

shall exclude Transporter's volumetric charges and volumetric

surcharges, including liquefaction and vaporization volumetric

charges, applicable to each service as included in Transporter's

rates, which rate components must be paid to Transporter by the

successful bidding Replacement Shipper or Prearranged Replacement

Shipper in addition to the bid amounts. The Releasing Shipper

shall not be responsible for continuing to pay such volumetric

charges and volumetric surcharges for the capacity released during

the term of each release, nor for penalties incurred by the

Replacement Shipper or Prearranged Replacement Shipper.

22.5 CAPACITY RELEASE AWARD PROCESS FOR BIDDABLE TRANSACTIONS.

(a) Transporter shall determine the winning bid. Unless

Releasing Shipper specifies otherwise, bids will be evaluated

based on the economic value of the demand and capacity or

reservation charges bid by each Bidder. After the economic value

of each bid for each receipt and delivery point combination has

been determined, and if the capacity to be allocated to the

highest Bidders would not result in awarding all of the capacity

to be released, then Transporter shall award the remaining