Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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

Original Sheet No. 122 Original Sheet No. 122 : Effective

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

14. ARBITRATION

Any arbitration provided for or agreed to by Shipper and GTN shall be

conducted in accordance with the following procedures and principles:

Upon the written demand of either GTN or Shipper and within ten (10) days

from the date of such demand, each entity shall appoint an arbitrator and

the two arbitrators so appointed shall promptly thereafter appoint a

third. If either GTN or Shipper shall fail to appoint an arbitrator

within ten (10) days from the date of such demand, then the arbitrator

shall be appointed by a Superior Court of the State of California in

accordance with the California Code of Civil Procedure. If the two

arbitrators shall fail within ten (10) days from their appointment to

agree upon and appoint the third arbitrator, then upon the application of

either GTN or Shipper such third arbitrator shall be appointed by a

Superior Court of the State of California in accordance with the

California Code of Civil Procedure.

The arbitrators shall proceed immediately to hear and determine the

matter in controversy. The award of the arbitrators, or a majority of

them, shall be made within forty-five (45) days after the appointment of

the third arbitrator, subject to any reasonable delay due to unforeseen

circumstances. The award of the arbitrators shall be drawn up in writing

and signed by the arbitrators, or a majority of them, and shall be final

and binding on both GTN and Shipper, and GTN and Shipper shall abide by

the award and perform the terms and conditions thereof. Unless otherwise

determined by the arbitrators, the fees and expenses of the arbitrator

named for each party shall be paid by that party and the fees and

expenses of the third arbitrator shall be paid in equal proportion by

both GTN and Shipper.

15. GOVERNMENTAL REGULATIONS

These Transportation General Terms and Conditions, the rate schedules to

which they apply, and any executed Transportation Service Agreement are

subject to valid laws, orders, rules and regulations of duly constituted

authorities having jurisdiction.