Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 08/01/2004, Docket: RP04-346-000, Status: Effective

Third Revised Sheet No. 225 Third Revised Sheet No. 225 : Effective

Superseding: Second Revised Sheet No. 225

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

36. DISCOUNT POLICY

36.1 GTN may from time to time offer a discount from the maximum

applicable rate for service under any service agreement governed by

this FERC Gas Tariff. If and when GTN offers a discount, such

discount shall be applied to the base tariff rate.

36.2 Types Of Discounts

From time to time, GTN and Shipper may agree in writing on a level of

discount of the otherwise applicable rates and charges in addition to a

basic discount from the maximum rates. For example, GTN may provide a

specific discount rate based on:

(a) achievement of a specified quantity levels (including quantity

levels above, below, or equal to a specified level);

(b) specified time periods;

defined geographic areas; or transportation paths;

(d) a specified relationship to the quantities actually transported

(i.e., that the rates shall be adjusted in a specified

relationship to the quantities actually transported); or

(e) published index prices for specific receipt and/or delivery points

or other agreed-upon published pricing reference points for price

determination (such discounted rate may be based upon the

differential between published index prices or arrived at by

formula). Such discounted rate: (1) shall not change the

underlying rate design; (2) shall not include any minimum bill or

minimum take provision that has the effect of guaranteeing

revenue; and (3) shall, in each service agreement entered into

pursuant to Section 36.2(e), define the rate component(s) to be

discounted.

In all circumstances the discounted rate shall be between the maximum

rate and the minimum rate applicable to the service provided.