Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

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

First Revised Sheet No. 271B First Revised Sheet No. 271B

Superseding: Original Sheet No. 271B

GENERAL TERMS AND CONDITIONS

(Continued)

22.12 PERMANENT RELEASES OF CAPACITY (Continued)

(iii) For any permanent capacity release, the minimum bid

acceptable to Transporter will be a bid for the remainder

of the Releasing Shipper's contract term at the rate the

Releasing Shipper is obligated to pay Transporter for the

released capacity.

(iv) As part of its permanent capacity release offer, the

Releasing Shipper may offer to make a lump sum exit fee

payment, up to a specified amount, directly to the

Replacement Shipper as consideration for the Replacement

Shipper agreeing to pay Transporter a rate at or above

Transporter's minimum acceptable bid rate. If Releasing

Shipper's capacity release offer includes an exit fee

payment commitment, any bids for the capacity must state

the rate the Bidder offers to pay Transporter for the

released capacity and the associated exit fee payment, not

to exceed the Releasing Shipper's specified amount, that

Bidder requires from the Releasing Shipper. The winning

bid will be determined based on the net present value of

the transportation rate component of the bid less the exit

fee component of the bid. The cash flow discount factor

for the net present value calculations will be the latest

annual interest rate published quarterly by the Commission

as posted on the Commission's Internet Website, unless

otherwise specified by the Releasing Shipper. The payment

of any exit fee will be handled directly between the

Releasing Shipper and Replacement Shipper, with both

parties agreeing that Transporter will not be responsible

for collecting or disbursing such payment.