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. 223 First Revised Sheet No. 223 : Effective

Superseding: Original Sheet No. 223

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS

(Continued)

(1) Interruptible Transportation Revenue Credits on Coyote

Springs Extension (Continued)

(d) Exclusion. Revenue credits shall not be awarded for

that portion of interruptible revenues that are

attributable to: (1) the recovery by GTN of

variable costs, which portion shall be equal to the

minimum usage charge for Rate Schedule ITS-1 (E-3),

and (2) relate to other volumetric surcharges such

as ACA.

(e) Distribution Method. Interruptible transportation

revenue credits shall be credited to each Eligible

Shipper on a pro rata basis in proportion to the

reservation revenues received during the 12-month

period or Short Period from each Eligible Shipper

divided by the total reservation revenue for each

Eligible Shipper received during such period. The

reservation revenues shall include the reservation

charges which the Eligible Shippers actually pay prior

to the distribution of all revenue credits, and

including reservation charges applicable to capacity

which was released into GTN's Capacity Release

Programs during the 12-month period year or Short

Period by the Eligible Shipper.

(f) GTN shall pay interest to Eligible Shippers

on any revenue credits from the date such credits

accrue. Such interest shall be calculated based upon

the rate of interest specified in Section 154.67(c) of

the Commission's regulations.

(Continued)