Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 07/01/2006, Docket: RP06-371-000, Status: Effective

First Revised Sheet No. 228 First Revised Sheet No. 228 : Effective

Superseding: Original Sheet No. 228

GENERAL TERMS AND CONDITIONS

(Continued)

37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS AND OTHER UNACCOUNTED

FOR GAS PERCENTAGES (Continued)

37.2 The Current Fuel and Line Loss Percentage (Continued)

(d) At least thirty (30) days prior to January 1,

GTN shall file with the Commission schedules

supporting the current fuel and line loss percentages

applicable during the twelve (12) months ending October

31.

37.3 The Fuel and Line Loss Surcharge Percentage

(a) For each twelve (12) month period beginning January 1,

the fuel and line loss surcharge percentage

shall be determined in accordance with Section 37.3(c)

hereof. The fuel and line loss surcharge percentage

shall become effective on January 1 and shall

remain in effect for the twelve (12) month period ending

December 31.

(b) At least thirty (30) days prior to each January 1,

GTN shall file with the Commission

and post, as defined by Section 154.2(d) of the

Commission's regulations, the fuel and line loss

surcharge percentage, together with supporting

documentation.

quantifying GTN's actual fuel and line loss over/under

collection position at October 31 of each year and

dividing the result by an estimate of the quantities of

gas to be delivered by GTN for the account of Shippers

over the following twelve (12) month period. The

over/under position will be quantified by (i) determining

GTN's actual fuel consumption and line losses for each

month of the preceding twelve (12) month period and (ii)

subtracting the quantities retained by GTN during each

month of the preceding twelve (12) month period. If the

percentage so determined is +/- 0.0001%, the fuel and

line loss surcharge percentage shall be deemed to be

zero.