Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 10/06/2003, Docket: RP04- 23-000, Status: Effective

Original Sheet No. 37 Original Sheet No. 37 : Effective

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.10 Capacity Release

(a) Releasing Shippers:

Shipper shall have the option to release capacity

pursuant to the provisions of GTN's capacity release

program as specified in the Transportation General Terms

and Conditions. Shipper may release its capacity, up to

Shipper's Maximum Daily Quantity under this rate

schedule, in accordance with the provisions of Paragraph

28 of GTN's Transportation General Terms and

conditions of this FERC Gas Tariff, Third Revised Volume

No. 1-A. Shipper shall pay a fee associated with the

marketing of capacity by GTN (if applicable) in

accordance with Paragraph 28 of the Transportation General

Terms and Conditions. This fee shall be negotiated between

GTN and the Releasing Shipper.

(b) Replacement Shippers:

Shipper may receive released capacity service under this

rate schedule pursuant to Paragraph 28 of the

Transportation General Terms and Conditions and is

required to execute a service agreement in the form

contained for capacity release under Rate Schedule FTS-1

in this Third Revised Volume No. 1-A.

Shipper shall pay GTN each month for transportation

service under this rate schedule and as set forth in

GTN's current Statement of Effective Rates and

Charges in this Third Revised Volume No. 1-A. Charges to

be paid shall be the sum of the Reservation Charge, Delivery

Charge, and other applicable surcharges or penalties.

The rates paid by Shipper receiving capacity release

transportation service shall be adjusted as provided on

Exhibit R in the executed Transportation Service

Agreement For Capacity Release between GTN and

Shipper.

(Continued)