Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 05/01/2008, Docket: RP99-518-106, Status: Pending

Third Revised Sheet No. 20 Third Revised Sheet No. 20 : Pending

Superseding: Second Revised Sheet No. 20

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULES FTS-1 AND LFS-1

Explanatory Footnotes for Negotiated Rates

under Rate Schedules FTS-1 and LFS-1

/11 Index Rate Calculation

The per-Dth Reservation Rate shall be determined daily and will equal [the Gas

Daily Midpoint Price (The Gas Daily Midpoint Price is the price survey

midpoint for PG&E, Malin and Stanfield, OR as applicable as published in Gas

Daily for the day of gas flow. Weekend and holiday prices will be determined

using the last published Gas Daily publication prior to the weekend or

holiday.) for PG&E, Malin minus the Gas Daily Midpoint Price for Stanfield,

OR, minus the sum of the following]:

1) an allowance for the per Dth cost of GTN system fuel

2) an allowance for the per Dth cost of delivery of volumes on the GTN

System equal to the maximum delivery rate applicable under GTN's FTS-1

Tariff for the volumes transported, multiplied by the distance

transported

3) an allowance for ACA of $0.0019/Dth

The allowance for GTN System fuel shall be computed as follows:

The Gas Daily Midpoint Price for Stanfield, OR multiplied by {[1.0/(1.0-

the GTN System fuel rate )] minus 1.0}, where the GTN System fuel rate

equals GTN's applicable mileage-based fuel rate multiplied by the

mileage of the path of the gas transported.

Reservation Rate

On any day when the foregoing Index Rate calculation produces a result less

than $0.06/Dth, the Reservation Rate shall be deemed to be $0.02/Dth. On any

day when the foregoing Index Rate calculation produces a result greater than

or equal to $0.06/Dth and less than or equal to $0.10/Dth, the Reservation

Rate shall be deemed to be equal to the calculated per Dth Reservation Rate

minus $0.04/Dth. On any day when the foregoing Index Rate calculation produces

a result greater than $0.10/Dth, the Reservation Rate shall be equal to six

cents ($0.06) plus eighty percent (80%) of the difference between the result

of the Index Rate Calculation and ten cents ($0.10). To determine the Index

Rate calculation applicable to volumes not nominated or scheduled, the

Stanfield, OR to Malin, OR mileage will be applied to the calculation's

mileage-based components.

Other Charges

In addition to the Reservation Rate as calculated herein, Eagle Energy

Partners shall pay the Delivery Rate for volumes transported equal to the

maximum delivery rate, plus the ACA charge as applicable under GTN's FTS-1

Tariff. Eagle Energy Partners shall provide fuel in kind in accordance with

GTN's FTS-1 Tariff.

Renegotiate Request

In the event that the indices for PG&E, Malin and/or Stanfield, OR are not

published on any given day (other than a weekend or holiday), prices will be

determined based on the last published information for such index. In the

event that the indices for PG&E, Malin and/or Stanfield, OR are not published

on at least three business days within a span of six business days, either

party may request negotiation of a replacement rate structure (a

"Renegotiation Request"). Upon such Renegotiation Request, GTN and Eagle

Energy Partners will use diligent, good faith efforts to come to a mutually

agreeable replacement rate structure. Firm Transportation Service Agreement

F-10628 will terminate on the fifteenth day following a Renegotiation Request

in the event the parties do not agree on a replacement rate structure prior to

such termination.