Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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

Original Sheet No. 105 Original Sheet No. 105 : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITIONS (Continued)

1.29 Forward Haul: The term "Forward Haul" shall refer to

transportation service on GTN's system in which the

nominated direction of flow from receipt point to delivery

point is in the same direction as physical gas flow on the

GTN system.

1.30 Backhaul: The term "Backhaul" shall refer to transportation

service on GTN's system in the opposite direction of

a Forward Haul as defined in Section 1.29 above.

1.31 Primary Path: The term "Primary Path" shall mean the

transportation path established by the receipt and delivery

points as set forth in Shipper's executed Service Agreement.

A shipper's Primary Path may be either a Forward Haul or a

Backhaul as defined in Sections 1.29 and 1.30 above.

1.32 Reverse Path: The term "Reverse Path" shall mean the

transportation path that is in the opposite direction of that

Shipper's Primary Path as defined in Section 1.31 above. A

shipper's Reverse Path may be either a Forward Haul or a

Backhaul as defined in Sections 1.29 and 1.30 above.

Reverse Path transactions 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.

1.33 Negotiated Rate. The term "Negotiated Rate" shall mean a

rate (including a Negotiated Rate Formula) that GTN

and a Shipper have agreed will be charged for service under

Rate Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 where, for

all or a portion of the contract term, one or more of the

individual components of such rate may exceed the maximum

rate, or be less than the minimum rate, for such component

set forth in GTN's tariff for the given service. Any

Agreement entered into after the effective date of this

subsection which provides for a rate under Rate Schedules

FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 other than the applicable

maximum rate shall contain a provision setting out the

mutual agreement of the parties as to whether the pricing

terms represent a discounted rate or a negotiated rate.

(Continued)