Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 12/23/2005, Docket: RP06-106-000, Status: Effective

Second Revised Sheet No. 175 Second Revised Sheet No. 175 : Effective

Superseding: First Revised Sheet No. 175

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE

28.1 Eligibility to Release

Any firm Shipper which contracts for firm transportation

service under Part 284 of the Commission's regulations

(Releasing Shipper) is eligible to release all or part of

its capacity (Parcel) for use by another party

(Replacement Shipper). Any Replacement Shipper which has

previously contracted for a Parcel may also release its

capacity to another party as a secondary release subject

to the terms and conditions described herein.

Upon releasing a Parcel, consistent with the terms and

conditions described herein, all Releasing Shippers shall

remain ultimately liable for all reservation charges

billable for the originally contracted service. The

Releasing Shipper, whether a primary or secondary

capacity holder, must post the capacity it seeks to

release on GTN's Internet website prior to the close of the

Posting Period defined herein.

A Releasing Shipper may release all or a portion of its

capacity for the remaining term of its contract on either a

temporary or permanent basis. In the event of a permanent

capacity release by a Shipper paying the maximum recourse

rate, the Right of First Refusal is conveyed to the

Replacement Shipper for that portion permanently released.

GTN may not unreasonably refuse to relieve a Releasing Shipper

of liability under its contract and extinguish Releasing

Shipper's contractual obligations to GTN with respect to that

portion requested to be permanently released provided that: 1)

the Replacement Shipper is creditworthy pursuant to GTN's

credit standards; and 2) the rate paid by the Replacement

Shipper is no less than either the rate contracted between the

Releasing Shipper and GTN for the remaining term of the

contract or the maximum tariff rate, whichever is less. GTN

may refuse to allow a permanent capacity release if it has a

reasonable basis to conclude that it will not be financially

indifferent to the release. If Shipper's request to

permanently release capacity is denied by GTN, GTN shall

notify Shipper via e-mail and shall include in the

notification the reasons for such denial.

(Continued)