Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 01/01/2007, Docket: RP06-407-008, Status: Pending

Substitute Second Revised Sheet No. 210 Substitute Second Revised Sheet No. 210 : Pending

Superseding: First Revised Sheet No. 210

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

32. RESERVATION OF CAPACITY FOR EXPANSION PROJECTS

Transporter may elect to reserve, for future expansion projects,

unsubscribed firm capacity or capacity under expiring or terminating

firm transportation agreements where such agreements do not carry a

right of first refusal, or evergreen right, or where Shipper does not

exercise its right of first refusal, or where a party has elected

termination under an evergreen. Transporter may only reserve capacity

for a future expansion project for which an open season has been held or

will be held within one (1) year of the date that Transporter posts such

capacity as being reserved. Capacity reserved under this Section may be

reserved for up to one year prior to Transporter filing for certificate

approval for the proposed expansion, and thereafter until such expansion

is placed into service. Capacity that is reserved for a future expansion

will be made available for transportation service on an interim basis up

to the in-service date of the expansion project. For such interim

service agreements, Transporter reserves the right to limit Shipper

extension rights, including the right of first refusal, within the

service agreement. Transporter will indicate in any open season posting

of this capacity any limitations on extension rights that will apply to

such interim transportation service.

Prior to reserving capacity for future expansion projects under this

Section, the subject capacity must have first been made available

pursuant to Section 18.1(c) of these Transportation General Terms and

Conditions. Capacity that remains available after the posting and

bidding procedure outlined in Section 18.1(c) may be reserved by

Transporter by means of a posting on Transporter's Internet website that

shall include:

(a) A description of the expansion project for which the capacity will

be reserved;

(b) The total quantity of capacity to be reserved;

system;

(d) When Transporter anticipates holding an open season or otherwise

posting the capacity for bidding in connection with the expansion

project;

(e) The projected in-service date of the expansion project; and

(f) On an ongoing basis, how much of the reserved capacity has been

sold on a limited-term basis.

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