Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 08/01/2004, Docket: RP04-346-000, Status: Effective

First Revised Sheet No. 195 First Revised Sheet No. 195 : Effective

Superseding: Original Sheet No. 195

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE (Continued)

28.10 Crediting, Billing Adjustments and Refunds

(a) Eligibility

GTN shall provide revenue credits to any

Releasing Shipper which releases capacity to a

Replacement Shipper pursuant to the provisions of

Paragraph 28. GTN and Shipper may, in

connection with a Negotiated Rate Agreement

under a firm rate schedule, agree upon payment

obligations and crediting mechanisms in the event

of a capacity release that vary from, or are in

addition to, those set forth in this Section 28.10;

provided, however, that terms and conditions of

service may not be negotiated.

(b) Monthly Crediting Procedure

Revenue credits for released capacity shall be

credited monthly as an offset to a Releasing

Shipper's reservation charge (or the volumetric

equivalent of the reservation charge on a 100%

load-factor basis applicable to the Releasing

Shipper. This shall also be referred to in this

Paragraph 28.9 as the equivalent volumetric rate)

payable to GTN under the applicable rate

schedule for the service that has been released.

GTN shall credit each month to the Releasing

Shipper's account 100% of the revenues from the

charges invoiced to the Replacement Shipper(s) for

the reservation charge (or equivalent volumetric

rate).

GTN shall apply the revenues received from

Replacement Shippers to the reservation

charge (or equivalent volumetric rate).

(Continued)