Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 09/03/2004, Docket: RP04-440-000, Status: Effective

Third Revised Sheet No. 106 Third Revised Sheet No. 106 : Effective

Superseding: Second Revised Sheet No. 106

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITIONS (Continued)

1.34 Negotiated Rate Formula. The term "Negotiated Rate Formula"

shall mean a rate formula that GTN and a Shipper have

agreed will apply to service under a specific contract under

Rate Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 which results

in a rate 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 may be less than the minimum rate, for

such component set forth in GTN's Tariff for the given

service.

1.35 Recourse Rate. The term "Recourse Rate shall mean the

applicable maximum rate that would apply to a service but

for the rate flexibility allowed under Section 31 of this

Gas Tariff.

1.36 Existing Capacity. The term "Existing Capacity" shall mean

capacity that has been in-service beyond the initial terms of

Agreements that originally supported the construction of such

capacity. Existing Capacity additionally includes capacity that

is still within such initial terms where Shipper Agreements

pertaining to the capacity have been terminated by the pipeline.

Existing Capacity additionally includes unsubscribed capacity

created as part of a pipeline expansion project.

1.37 Expansion Capacity. The term "Expansion Capacity" shall mean

capacity that is added to the pipeline system as part of a system

expansion project where such capacity is still within the initial

contract term(s) of the Agreement(s) that originally supported

the construction of such capacity. Expansion Capacity includes

permanent releases of capacity that are within the initial term

of an original Shipper's contract.

1.38 Long-Term Firm Capacity. The term "Long-Term Firm Capacity"

shall mean firm capacity that is provided on GTN's system for

periods of 365 days or longer, but which may also be sold as

Short-Term Firm Capacity. Unsubscribed Long-Term Firm Capacity

is posted under the capacity option in the info postings menu on

GTN's website at www.gastransmissionnw.com/info post/.

1.39 Short-Term Firm Capacity. The term "Short-Term Firm Capacity"

shall mean firm capacity that is provided on GTN's system for

periods of time that are less than 365 days. Unsubscribed Short-

Term Firm Capacity is posted under the capacity option in the

info postings menu on GTN's website at