Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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

Original Sheet No. 221E Original Sheet No. 221E : Pending

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

35. PIPELINE INTEGRITY PLAN (PIP) SURCHARGE (Continued)

35.8 True-up (Continued)

recovered, through application of PIP Surcharges, costs that

are in excess of $40 million, Transporter will file to

establish a negative surcharge to return amounts collected in

excess of the final Net Qualifying Cost balance. The negative

surcharges must be designed such that they may be applied in

full by the end of the same calendar year. Such amounts

returned by Transporter may not exceed the amounts recovered by

Transporter through application of PIP Surcharges. The final

true-up calculation will additionally take into account the

difference between the estimated transportation throughput used

to set the PIP Surcharge(s) and actual transportation

throughput during the last year a surcharge is in effect.

35.9 Interest: Except as set forth in Section 35.5(b), interest

shall not be included in any charge or refund that will be

provided pursuant to the PIP tracking mechanism set forth

herein.