Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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

Third Revised Sheet No. 162 Third Revised Sheet No. 162 : Effective

Superseding: Second Revised Sheet No. 162

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING (Continued)

21.1 (Continued)

(c) Actual quantity received exceeds delivered quantity

A net positive imbalance shall exist if the difference

between the quantity received and the quantity delivered,

taking into account the reduction in quantity for compressor

fuel use, yields a positive result. Commencing upon

notification by GTN of the existence of the imbalance, and

to the extent that the GTN system is not constrained or its

integrity threatened, Shipper shall have three (3) days to

correct the imbalance.

Remedies: Shippers may schedule with GTN using the

nomination process to eliminate or reduce positive

imbalances. In addition, in accordance with this Paragraph

21, Shippers may net or trade imbalances to eliminate or

reduce positive imbalances.

Penalty: If at the end of the aforementioned three (3)

day period the difference between the actual quantity

received and the delivered quantity is in excess of 10% of

the delivered quantity or 1000 Dth, whichever is greater,

the Shipper shall be assessed a penalty of $2/Dth applied to

the excess quantity. If the imbalance is not corrected

within 45 days of GTN's notice of an imbalance, GTN shall be

able to retain the remaining imbalance quantity without

compensation to the Shipper and free and clear of any

adverse claim. Quantities retained by GTN will be sold in

accordance with Paragraph 39 of these Transportation General

Terms and Conditions, and the proceeds from the sale of

confiscated gas will be credited to all shippers in

accordance with Paragraph 21.6.

(Continued)