Northwest Pipeline Corporation

First Revised Volume No. 1-A

Effective Date: 10/27/1993, Docket: RP93-199-000, Status: Effective

Second Revised Sheet No. 317-B Second Revised Sheet No. 317-B : Effective

Superseding: First Revised Sheet No. 317-B

RATE SCHEDULE TF-1

Firm Transportation

(Continued)

11. FACILITIES REIMBURSEMENT (Continued)

When Transporter has previously paid for all or a portion of

receipt or delivery point facilities under this facilities

reimbursement policy, Shipper shall, nevertheless, promptly pay

Transporter for Transporter's net book value of such facilities

when either of the following events occurs: (1) when

Transporter's ability to fully recover such costs is denied in any

Section 4 or Section 5 rate proceeding, or (2) when Shipper ceases

operations at the end-use point or receipt point adjacent to where

the facilities were installed.

(b) Regardless of the outcome of the economic test, at its option,

Transporter will pay all costs of acquiring any rights to real

property upon which the contemplated facilities are to be

constructed, as well as costs related to rights of ingress and

egress. Unless otherwise agreed, any rights of ownership and

control associated with such real property will be retained by

Transporter.

reimbursement under Section 11(a), Shipper may choose one of the

following options for payment:

(1) Shipper may pay due Transporter for the subject facility

construction costs pursuant to Section 11(a), and related

income taxes, in full upon completion of construction; or

(2) Shipper may arrange to reimburse Transporter for the cost of

facilities contemplated by this Section 11 through a

"Facility Cost-of-Service Charge." The terms of

reimbursement will be set forth on "Exhibit C" to the Rate

Schedule TF-1 Service Agreement, executed by Transporter and

Shipper. This Facility Cost of Service Charge obligation

may be transferred to superseding or replacement service

agreements, as necessary. The Shipper who requested the

facilities, or its successor, will be charged monthly a

Facility Cost-of-Service Charge for such facilities until

Transporter recovers in full the net book value, and the

associated rate of return and income taxes, of that portion

of the facilities for which Shipper is responsible to pay

pursuant to Section 11(a) hereof. In calculating the

Facility Cost-of-Service Charge for the facilities,