Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 10/06/2003, Docket: RP04- 23-000, Status: Effective

Original Sheet No. 208 Original Sheet No. 208 : Effective

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

31. NEGOTIATED RATES

31.1 Availability. Notwithstanding anything to the contrary contained

in this Tariff, including the provisions of the rate schedules

contained herein, GTN and Shipper may mutually agree to a

Negotiated Rate under any Agreement, provided that Shipper has

not acquired its capacity on a temporary basis under the

capacity release provisions of Paragraph 28 of these

Transportation General Terms and Conditions. If a portion of

the capacity under any existing Agreement is agreed to be priced

at Negotiated Rates, the existing maximum or discounted tariff

rates will continue to apply to the capacity not subject to the

Negotiated Rates. As a recourse to the Negotiated Rates, any

Shipper may receive service at applicable maximum tariff rates,

including surcharges. The Negotiated Rate may be less than,

equal to, or greater than the maximum and minimum applicable

tariff rate; may be based on a rate design other than

straight-fixed variable; and may include a minimum quantity.

GTN's Recourse Rates shall be available to any Shipper

that does not agree to a Negotiated Rate. Recourse Rates are set

forth on the Rate Sheets within this Tariff.

GTN and a Shipper may agree to a Negotiated Rate for the

entire term of a Transportation Service Agreement, or may agree

to a Negotiated Rate for some portion of the term of a

Transportation Agreement. GTN and Shipper may agree to

apply the Negotiated Rate to all or a portion of capacity under

Shipper's Firm Transportation Service Agreement.

During the period a Negotiated Rate is in place, the Negotiated

Rate shall govern and apply to the Shipper's service under the

Negotiated Rate Agreement and the otherwise applicable rate,

rate component, charge or credit which the parties have agreed

to replace with the Negotiated Rate shall not apply to, or be

available to, the Shipper. Only those rates, rate components,

charges or credits identified by GTN and Shipper in

writing as being superceded by a Negotiated Rate shall be

ineffective during the period that the Negotiated Rate is

effective; all other rates, rate components, charges, or

credits prescribed, required, established or imposed by this

Rate Schedule or Tariff shall remain in effect. At the end

of the period during which the Negotiated Rate is in effect,

the otherwise applicable tariff rates or charges shall govern

any service provided to Shipper.

(Continued)