Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 04/24/2006, Docket: RP06-278-001, Status: Effective

Third Revised Sheet No. 160 Third Revised Sheet No. 160 : Effective

Superseding: Second Revised Sheet No. 160

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING

21.1 Balancing of thermally equivalent quantities of gas received and

delivered by GTN shall be achieved as nearly as feasible on a

daily basis, with any cumulative imbalance accounted for on a

monthly basis. Correction of imbalances shall be the

responsibility of the Shipper whether or not notified by GTN at

the time of incurrence of the imbalance. Correction of imbalances

shall be scheduled with GTN using the nomination process as soon

as an imbalance is known to exist based on the best available

current data. Nominations to correct imbalances shall have the

lowest priority for scheduling purposes and shall be subject to

the availability of capacity and other operational constraints for

imbalance correction. If on any day capacity is insufficient to

schedule all imbalance nominations, all such nominations shall be

prorated accordingly. To maintain the operational integrity of its

system, GTN shall have the right to balance any Shipper's account

as conditions may warrant.

Imbalance penalties will apply during constraint periods when it

is necessary to maintain or restore the operational integrity of

the pipeline system and to ensure: adequate pipeline pressures to

provide efficient and reliable transportation services; adequate

system line pack to deliver on demand; service to all Shippers for

all firm services; and a balanced system for the foregoing

purposes. Imbalances shall exist as defined below and be subject

to the applicable charges and penalties if not corrected.

(a) Actual delivered quantity exceeds MDQ

Authorized Overruns are interruptible in nature and will be

subject to the Authorized Overrun charge, which is equal to the

rates and charges set forth for interruptible service under

Rate Schedule ITS-1, and such Authorized Overruns shall be

subject to the priority of service provisions of Paragraph 19

of these Transportation General Terms and Conditions.

An imbalance shall exist when GTN has not authorized deliveries

in excess of a Shipper's MDQ. Under these circumstances, GTN

may, without notice, adjust Shipper requests for confirmation

from receipt and delivery markets on GTN's system.

Penalty: For unauthorized deliveries in excess of a Shipper's

MDQ, a Shipper shall be assessed a penalty equal to two (2)

times the maximum applicable interruptible transportation rate

for the quantity that is greater than 10% of the MDQ or 1000

Dth, whichever is greater.