Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 04/24/2006, Docket: RP06-278-000, Status: Effective

First Revised Sheet No. 164 First Revised Sheet No. 164 : Effective

Superseding: Original Sheet No. 164

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING (Continued)

21.2 Imbalance determinations as described above will be performed on a

daily basis and each daily occurrence will constitute a separate

incident. It is recognized and understood that more than one

penalty provision may apply to each imbalance incident.

Imbalance and overrun penalties will be based on the lesser of the

impact from operational or actual data. In the event that any

penalty would otherwise be applicable under these provisions as a

direct consequence of any action or failure to take action by GTN

or the failure of any facility under GTN's control, or an event of

force majeure as defined in these Transportation General Terms and

Conditions, said penalty shall not apply.

21.3 Interruptible Shippers will be notified whether penalties will apply

on the day their volumes are reduced. GTN shall waive non-critical

penalties for bumped shippers on the day of the bump. Waiver of

non-critical penalties shall not relieve the shipper from the

obligation to take corrective action to eliminate ongoing

imbalances.

21.4 The payment of a penalty in dollars pursuant to this Paragraph 21

shall under no circumstances be considered as giving any Shipper the

right to deliver or take overrun quantities.

21.5 Upon termination of a Service Agreement, Shipper shall have 60 days

to correct any remaining imbalances. After this period has

elapsed, GTN shall have the right to retain any positive imbalance

quantity without compensation to the Shipper. For negative

imbalance quantities, GTN shall charge an amount equal to one

hundred ten percent (110%) of the average of the daily midpoint

prices reported for Malin, Oregon as published in the daily price

survey by Platts Gas Daily for the month in which the imbalance is

cashed out.

(Continued)