Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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

Original Sheet No. 205 Original Sheet No. 205 : Effective

TRANSPORTATION GENERAL TERMS AND CONDITIONS

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30. OPERATIONAL FLOW ORDER (OFO) PROCEDURES (Continued)

30.4 Except in cases where the curtailment of interruptible services

would not alleviate the causes and conditions necessitating the

issuance of an OFO, GTN will, where practicable, curtail

interruptible services prior to issuing an OFO. GTN shall not be

required to curtail interruptible services to individual Shippers

when curtailment of service to those Shippers would not affect the

OFO.

30.5 Upon the issuance of an OFO by GTN, it shall be incumbent upon

Shipper/OBA Operator to adjust Gas supplies as directed within the

time frame specified in the OFO. Failure to comply in a timely

fashion with an OFO may result in an immediate interruption of all

or a portion of Shipper's service or service at a point covered by

an OBA and cause Shipper/OBA Operator to incur a penalty based on

the higher of $25/Dth or a price per Dth equal to three times the

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

price survey by Platts Gas Daily for all quantities in excess of

that allowed under the OFO for the day on which the penalty is

incurred. The payment of unauthorized overrun penalties does not

create the right to exceed the levels established by an OFO.

30.6 In the event Shipper/OBA Operator does not respond to the OFO and

GTN believes it is necessary to take actions such as buying or

selling gas to maintain system integrity or to prevent interrupting

service to another Shipper, GTN shall have the right, but not the

obligation, to take such remedial actions as it deems necessary.

If GTN takes these actions, it shall be made whole by the non-

responding Shipper/OBA Operator for all costs that GTN incurs

either through retention of penalty revenues or by direct

reimbursement by Shipper/OBA Operator. GTN shall not be liable for

any costs incurred by any Shipper/OBA Operator in complying with an

OFO.

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