Northwest Pipeline Corporation

First Revised Volume No. 1-A

Effective Date: 11/25/1990, Docket: GT91- 5-000, Status: Effective

Original Sheet No. 424 Original Sheet No. 424 : Effective

GENERAL TRANSPORTATION TERMS AND CONDITIONS

(Continued)

15. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

15.2 Imbalances and Penalties at Delivery Points. Penalties and overrun

charges as described in Sections 15.3 and 15.4 will be levied by

Transporter against the Receiving Party who controls the facilities into

which gas is delivered. If the Receiving Party incurs either an overage

or underage in takes from Transporter, due to a failure to take

quantities of gas equivalent to the total of all Nominating Party

nominations for deliveries into its facilities, such penalties and

overrun charges will be applied as described in Sections 15.3 and 15.4.

If Receiving Party has more than one sales or transportation service

agreement with Transporter, all imbalances will be on that agreement with

Receiving Party which is last in the determination of deliveries

categories, as per Section 15.1, unless otherwise agreed upon by the

parties. Notwithstanding the foregoing, if Receiving Party does not have

a sales or transportation agreement with Transporter, Shippers

transporting gas to such Receiving Party's facilities shall be deemed

Receiving Parties and shall be responsible for any imbalances and

associated penalties and overrun charges.

Transporter may in its sole good faith judgement waive any penalties

hereunder and shall waive any penalties due to imbalances which result

from errors made by Transporter or which result from force majeure

invoked by either Transporter or Receiving Party.

15.3 Monthly Imbalances and Penalties. If Receiving Party's or Shipper's

cumulative imbalances in any month are more than 5 percent above or below

total nominations for that month, Transporter shall notify Receiving

Party that imbalances exceed allowed tolerances. Such notice shall be

provided by the fifteenth day of the month following the month service is

rendered. Transporter will notify Receiving Party of any imbalances, and

specify whether a penalty situation exists. Receiving Party will be

given 45 days to eliminate any imbalances. If at the end of such 45-day

period Receiving Party remains in a penalty situation, Receiving Party

shall pay a penalty to Transporter equal to twice the then-effective

ODL-1 Commodity rate on the imbalance over 5%, as described above.

Imbalances shall be cumulative and Receiving Party must specifically

adjust nominations as necessary to eliminate such imbalances; however, if

Receiving Party fails to eliminate imbalances within the allowed period

referenced above, Transporter shall have the right to adjust nominations,

receipts or deliveries in order to achieve a balance in addition to any

penalties applied hereunder.