Northwest Pipeline Corporation

First Revised Volume No. 1-A

Effective Date: 01/01/1993, Docket: RP93- 35-001, Status: Effective

Second Revised Sheet No. 435 Second Revised Sheet No. 435 : Effective

Superseding: First Revised Sheet No. 435

GENERAL TRANSPORTATION TERMS AND CONDITIONS

(Continued)

19. SUPPLIER SETTLEMENT PAYMENT RECOVERY MECHANISM

19.1 Purpose. This Section of the General Terms and Conditions sets

forth the procedures (a) to reflect charges associated with the

recovery of Transporter's Supplier Settlement Payments and (b) by

which Transporter will adjust the charges in order to reflect

Transporter's actual Supplier Settlement Payments and associated

interest charges. Transporter reserves the right to modify any

provision contained in this Section 19 and any calculations or

rates resulting therefrom to reflect any changes required by

Commission or court orders issued subsequent to the effective

date of this Section 19.

19.2 Definitions. The definition of terms applicable to this Section

are as follows:

(a) Suppliers - Any entity providing natural gas to

Transporter under a contractual arrangement.

(b) Supplier Settlement Payments (SSP) - The consideration

expended or to be expended by Transporter to reach

settlements with Suppliers, which settlements buyout or

buydown the terms and/or obligations of contract(s)

between Transporter and any of its Suppliers. Transporter

will not seek to recover any amounts related to punitive

damages or penalties.

Sheet No. 201 of this Volume No. 1-A Tariff which is based

on 50 percent of Supplier Settlement Payments for all

settlements submitted in connection with Docket Nos. RP89-

137, RP89-219, RP90-50, and RP90-90; and is based on 75

percent of Supplier