Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 01/01/2007, Docket: RP06-407-000, Status: Effective

Second Revised Sheet No. 136 Second Revised Sheet No. 136 : Effective

Superseding: First Revised Sheet No. 136

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

18. OPERATING PROVISIONS (Continued)

 

18.3 Creditworthiness (Continued)

 

(C) Security requirements for Expansion Capacity will be separately

identified within the nondiscriminatory project requirements

included as part of any open season for Expansion Capacity. The

amount of security initially required for Expansion Capacity on

lateral facilities will be determined by GTN and may be up to the

cost of the facilities to be constructed ("Maximum Allowable

Security Requirement or MASR"). Where new lateral facilities

serve multiple shippers, an individual shipper's maximum

security obligation will be for no more than its proportionate

share of the MASR ("Shipper's Maximum Security Obligation or

SMSO"). Subsequent to Expansion Capacity on lateral facilities

being placed into service, the SMSO shall be reduced in

proportion to contract term. Shipper's actual security

requirement, as identified within the open season project

requirements, may be equal to or less than the SMSO ("Shipper's

Actual Security Obligation or SASO"). When the SMSO equals the

SASO held by GTN, GTN shall thereafter return Shipper's security

on either a monthly basis or as mutually agreed with Shipper

consistent with the reduction in SMSO. GTN is only permitted to

recover the cost of Expansion Capacity on lateral facilities once

through either transportation rates or, in the event of shipper

default, by means of the security provided through this

provision.

 

(D) Creditworthiness for Interruptible Transportation Service

 

(1) GTN shall not be required to perform or to continue

interruptible transportation service under this FERC Gas

Tariff, Third Revised Volume No. 1-A, on behalf of any

Shipper who, after GTN's request, fails to demonstrate

creditworthiness. If Shipper is found by GTN to be non-

creditworthy, GTN will, upon request, inform Shipper in

writing as to the reasons Shipper has been deemed non-

creditworthy.

 

(Continued)