Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 08/01/2004, Docket: RP04-346-000, Status: Effective

First Revised Sheet No. 49 First Revised Sheet No. 49 : Effective

Superseding: Original Sheet No. 49

RATE SCHEDULE LFS-1

LIMITED FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.6 Discounted Transportation Rates

Shipper shall pay the Maximum Reservation Charge and the

Maximum Delivery Charge for service under this Rate Schedule

unless GTN offers to discount the Mileage Rate

components or the Non-Mileage Rate components of the

Reservation Rate or the Delivery Rate under this rate schedule.

If GTN elects to discount any such rate, such discount shall not

be anticompetitive or unduly discriminatory between individual

shippers. The rates for service under this rate schedule shall

not be discounted below the Minimum Reservation Charge, the

Minimum Delivery Rate, and applicable ACA Surcharge.

3.7 Backhauls (as defined in Paragraph 1.30 of the Transportation

General Terms and Conditions) shall be subject to the same

charges as forward haul (as defined in Paragraph 1.29 of the

Transportation General Terms and Conditions) except that no gas

shall be retained by GTN for compressor station fuel,

line loss and other unaccounted-for gas. Backhauls are subject

to the operating conditions of GTN's pipeline and will not

be made available to Shipper if GTN determines, in its

sole discretion, that such transportation is operationally

infeasible or otherwise not available.

(Continued)