Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 07/01/2005, Docket: RP99-518-074, Status: Pending

First Revised Sheet No. 27 First Revised Sheet No. 27 : Pending

Superseding: Original Sheet No. 27

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE ITS-1, PS-1, AND AIS-1

Explanatory Footnotes for Negotiated Rates under Rate Schedule ITS-1, PS-1,

and AIS-1

5/ (Continued)

obligations, including GTN's system needs. GTN will make reasonable efforts

to notify Occidental in the case of an unexpected capacity restriction.

6/ This agreement is for service under GTN's Rate Schedule PS-1. The fee

charged for service under this agreement shall be determined as follows:

Maximum Allowable Total Quantity to be Parked: 230,000 Dth

Maximum Allowable Daily Quantity to be Parked: 20,000 Dth

Allowable Period to Park Quantities: Dec. 9-31, 2004

Allowable Period to Withdraw Parked Quantities: Feb. 1-28, 2005

Total Charge (assessed January 2005): $19,500

GTN shall reimburse Merrill Lynch $0.0848/Dth, up to a maximum 230,000 Dth,

for any difference between the actual parked quantity on Jan. 1, 2005 and the

Maximum Allowable Total Quantity to be parked, applicable to any nominated

and otherwise confirmable quantities GTN was unable to park on its system

during the Allowable Period to Park Quantities.

GTN shall reimburse Merrill Lynch $0.0848/Dth, up to a maximum 230,000 Dth,

for any quantities not withdrawn from GTN's system by Feb. 28, 2005 due to

GTN's inability to accommodate a nominated and otherwise confirmable

withdrawal for that quantity during the Allowable Period to Withdraw Parked

Quantities. In the event GTN requests Merrill Lynch to withdraw parked gas

from GTN's system in January 2005 or at a rate greater than 16,000 Dth/day

during February 2005, GTN shall credit Merrill Lynch at a rate of $0.0848/Dth

for all such quantities greater than 16,000 Dth.

Merrill Lynch shall use good faith efforts to withdraw all gas parked on a

ratable basis, plus or minus 20%, or as mutually agreed and further subject

to GTN's ability to redeliver such quantities at the nominated delivery

points.

Any quantities Merrill Lynch parks on GTN's system in excess of 230,000 Dth

in December, and any volumes parked in January and February 2005 shall be

subject to GTN's maximum tariff rate under Rate Schedule PS-1. Any

quantities withdrawn from GTN's Parking Service in February 2005 shall apply

first to the volumes subject to this agreement and second to any quantities

parked outside the bounds of this agreement.