Northwest Pipeline Corporation G P

Fourth Revised Volume No. 1

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

Original Sheet No. 276 Original Sheet No. 276 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

25. AVAILABLE CAPACITY (Continued)

25.2 Posting (Continued)

(f) Transporter has the option to establish a reserve rate for

any available capacity before such capacity is posted.

Transporter is not required to disclose the reserve rate at the

time of posting, but a record of the reserve rate must be

maintained for a period of three years for validation purposes.

(g) If Transporter determines that it is willing to accept

Negotiated Rate offers for available capacity that is posted for

bid pursuant to this Section, it will state in its posting the

specific basis on which Negotiated Rate offers will be considered

and one of the following evaluation methods for determining the

winning bid:

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

discounted using the discount rate(s) shown in the

posting);

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

(3) Reservation Rate.

(h) If Transporter's posting specifies 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.

25.3 Bidding

(a) New Agreements. All bids for available capacity will be

made through Transporter's Designated Site, or as specified in

Transporter's posting, setting forth the following, if applicable:

1. Bidder's name (which will not be reflected on the

Designated Site) and posted offer number;