PG&E CORP
EXHIBIT 10.4
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>f95893aexv10w4.txt
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<PAGE>
                                                                    EXHIBIT 10.4

                      FIRM TRANSPORTATION SERVICE AGREEMENT

      THIS AGREEMENT is made and entered into this 26th day of October, 1993, by
and between

      PACIFIC GAS TRANSMISSION COMPANY, a California corporation (hereinafter
referred to as "PGT),

                                       and

      PACIFIC GAS AND ELECTRIC COMPANY, a corporation existing under the laws of
the State of California, (hereinafter referred to as "Shipper").

      WHEREAS, PGT owns and operates a natural gas pipeline transmission system
which extends from a point of interconnection with the pipeline facilities of
Alberta Natural Gas Company Ltd. (ANG) at the International Boundary near
Kingsgate, British Columbia, through the states of Idaho, Washington and Oregon
to a point of interconnection with Pacific Gas and Electric Company at the
Oregon-California border near Malin, Oregon; and

      WHEREAS, Shipper desires PGT, on a firm basis, to transport certain
quantities of natural gas from Kingsgate, British Columbia to Malin, Oregon for
ultimate delivery to Shipper, a local distribution company; and

      WHEREAS, pursuant to FERC Order No. 636, et seq., PGT will unbundle its
firm transportation and sales services, and PGT and Shipper will execute a new
service agreement for unbundled firm transportation service; and

      WHEREAS, this Agreement will supersede and prior agreements between PGT
and Shipper for firm gas sales or firm transportation, and will incorporate the
transportation rights thereunder into this Agreement; and

      WHEREAS, PGT is willing to transport certain quantities of natural gas for
Shipper, on a firm basis,

      NOW, THEREFORE, the parties agree as follows:

                                        I
                             GOVERNMENTAL AUTHORITY

      1.1 This Firm Transportation Agreement ("Agreement") is made pursuant to
the regulations of the Federal Energy Regulatory Commission (FERC) contained in
18 CFR Part 284, as amended from time to time.
<PAGE>
                                        I
                             GOVERNMENTAL AUTHORITY
                                   (CONTINUED)

      1.2 This Agreement is subject to all valid legislation with respect to the
subject matters hereof, either state or federal, and to all valid present and
future decisions, orders, rules, regulations and ordinances of all duly
constituted governmental authorities having jurisdiction.

      1.3 Shipper shall reimburse PGT for any and all filing fees incurred by
PGT in seeking governmental authorization for the initiation, extension, or
termination of service under this Agreement and Rate Schedule FTS-1. Shipper
shall reimburse PGT for such fees at PGT's designated office within ten (10)
days of receipt of notice from PGT that such fees are due and payable.
Additionally, Shipper shall reimburse PGT for any and all penalty fees or fines
assessed PGT caused by the negligence of Shipper in not obtaining all proper
Canadian and domestic import/export licenses, surety bonds or any other
documents and approvals related to the Canadian exportation and subsequent
domestic importation of natural gas transported by PGT hereunder.

                                       II
                     QUANTITY OF GAS AND PRIORITY OF SERVICE

      2.1 Subject to the terms and provisions of this Agreement and PGT's
Transportation General Terms and Conditions contained in PGT's FERC Gas Tariff
First Revised Volume No. 1-A (Transportation General Terms and Conditions)
applicable to Rate Schedule FTS-1, daily receipts of gas by PGT from Shipper at
the point(s) of receipt shall be equal to daily deliveries of gas by PGT to
Shipper at the point(s) of delivery; provided, however, Shipper shall deliver to
PGT an additional quantity of natural gas at the point(s) of receipt as
compressor station fuel, line loss and unaccounted for gas as specified in the
Statement of Effective Rates and Charges of PGT's FERC Gas Tariff First Revised
Volume No. 1-A which by this reference is made a part hereof. Any limitation of
the quantities to be received from each point of receipt and/or delivered to
each point of delivery shall be as specified on the Exhibit A attached hereto.

      2.2 The maximum quantities of gas to be delivered by PGT for Shipper's
account at the point(s) of delivery are set forth in Exhibit A.

      2.3 In providing service to its existing or new customers, PGT will use
the priorities of service specified in Paragraph 18 of PGT's Transportation
General Terms and Conditions on file with the FERC.

      2.4 Prior to initiation of service, Shipper shall provide PGT with any
information required by the FERC, as well as the information identified in
Paragraphs 21, 28, and 29 of PGT's Transportation General Terms and Conditions
applicable to Rate Schedule FTS-1.
<PAGE>
                                       III
                                TERM OF AGREEMENT

      3.1 This Agreement shall become effective November 1, 1993, and shall
continue in full force and effect until October 31, 2005. Thereafter, this
Agreement shall continue in effect from year to year unless Shipper gives PGT
twelve (12) months prior written notice of termination of this Agreement. The
Agreement shall terminate twelve (12) months after such notice.

                                       IV
                         POINTS OF RECEIPT AND DELIVERY

      4.1 The primary point of receipt of gas deliveries to PGT is as designated
in Exhibit A, attached hereto.

      4.2 The primary point of delivery of gas to Shipper is as designated in
Exhibit A, attached hereto.

      4.3 Shipper shall deliver or cause to be delivered to PGT the gas to be
transported hereunder at pressures sufficient to deliver such gas into PGT's
system at the point(s) of receipt. PGT shall deliver the gas to be transported
hereunder to or for the account of Shipper at the pressures existing in PGT's
system at the point(s) of delivery.

      4.4 Pursuant to Paragraph 29 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and/or delivery points as
secondary receipt or delivery points.

                                        V
                               OPERATING PROCEDURE

      5.1 Shipper shall conform to the operating procedures set forth in PGT's
Transportation General Terms and Conditions.

      5.2 Nothing in Section 5.1 shall compel PGT to transport gas pursuant to
Shipper's request on any given day. PGT shall have the right to interrupt or
curtail the transport of gas for the account of Shipper pursuant to PGT's
Transportation General Terms and Conditions applicable to Rate Schedule FTS-1.

                                       VI
                          RATE(S), RATE SCHEDULES, AND
                     GENERAL TERMS AND CONDITIONS OF SERVICE

      6.1 Shipper shall pay PGT each month for services rendered pursuant to
this Agreement in accordance with PGT's Rate Schedule FTS-1, or superseding rate
schedule(s), on file with and subject to the jurisdiction of FERC.
<PAGE>
                                       VI
                          RATE(S), RATE SCHEDULES, AND
                     GENERAL TERMS AND CONDITIONS OF SERVICE
                                   (CONTINUED)

      6.2 Shipper shall compensate PGT each month for compressor station fuel,
line loss and other unaccounted for gas associated with this transportation
service provided herein in accordance with PGT's Rate Schedule FTS-1, or
superseding rate schedule(s), on file with and subject to the jurisdiction of
the FERC.

      6.3 This Agreement in all respects shall be and remains subject to the
applicable provisions of Rate Schedule FTS-1, or superseding rate schedule(s)
and of the applicable Transportation General Terms and Conditions of PGT's FERC
Gas Tariff First Revised Volume No. 1-A on file with the FERC, all of which are
by this reference made a part hereof.

      6.4 PGT shall have the unilateral right from time to time to propose and
file with FERC such changes in the rates and charges applicable to
transportation services pursuant to this Agreement, the rate schedule(s) under
which this service is hereunder provided, or any provisions of PGT's
Transportation General Terms and Conditions applicable to such services. Shipper
shall have the right to protest any such changes proposed by PGT and to exercise
any other rights that Shipper may have with respect thereto.

                                       VII
                                  MISCELLANEOUS

      7.1 This Agreement shall be interpreted according to the laws of the State
of California.

      7.2 Shipper agrees to indemnify and hold PGT harmless for refusal to
transport gas hereunder in the event any upstream or downstream transporter
fails to receive or deliver gas as contemplated by this Agreement.
<PAGE>
                                       VII
                                  MISCELLANEOUS
                                   (CONTINUED)

      7.3 Unless herein provided to the contrary, any notice called for in this
Agreement shall be in writing and shall be considered as having been given if
delivered by registered mail or telex with all postage or charges prepaid, to
either PGT or Shipper at the place designated below. Routine communications,
including monthly statements and payment, shall be considered as duly delivered
when received by ordinary mail. Unless changed, the addresses of the parties are
as follows:

                 "PGT" PACIFIC GAS TRANSMISSION COMPANY
                 160 Spear Street
                 Room 1900
                 San Francisco, California 94105-1570
                 ATTENTION:  President & CEO

                 "SHIPPER"   PACIFIC GAS & ELECTRIC COMPANY
                             77 Beale Street, Room 1611
                             Mail Code B16A, P. O. Box 770000
                             San Francisco, CA 94177
                             ATTENTION:  Mgr. Gas Services Dept.

      7.4 A waiver by either party of any one or more defaults by the other
hereunder shall not operate as a waiver of any future default or defaults,
whether of a like or of a different character.

      7.5 This Agreement may only be amended by an instrument in writing
executed by both parties hereto.

      7.6 Nothing in this Agreement shall be deemed to create any rights or
obligations between the parties hereto after the expiration of the term set
forth herein, except that termination of this Agreement shall not relieve either
party of the obligation to correct any quantity imbalances or Shipper of the
obligation to pay any amounts due hereunder to PGT.

      7.7 Exhibits A and C attached hereto are incorporated herein by reference
and made a part hereof for all purposes.
<PAGE>
      IN WITNESS WHEREOF the parties have caused this Agreement to be executed
as of the day and year first above written.


                            PACIFIC GAS TRANSMISSION COMPANY

                            By:  /s/ Paula G. Rosput
                               -------------------------------------------------

                            Name:  Paula G. Rosput

                            Title:  Senior Vice President

                            Date:  October 26, 1993


                            PACIFIC GAS & ELECTRIC COMPANY

                            By:  /s/ William R. Mazotti
                               -------------------------------------------------

                            Name:  William R. Mazotti

                            Title:  Vice President - Gas Services & Operations

                            Date:  October 26, 1993
<PAGE>
                                    EXHIBIT A

                                     TO THE
                      FIRM TRANSPORTATION SERVICE AGREEMENT
                        DATED____________________BETWEEN
                        PACIFIC GAS TRANSMISSION COMPANY
                                       AND
                         PACIFIC GAS & ELECTRIC COMPANY

<TABLE>
<CAPTION>
RECEIPT               DELIVERY             MAXIMUM DAILY QUANTITY (MDQ)
POINT (1)             POINT(1)                 (DELIVERED) MMBTU/D
---------             --------             ----------------------------
                                            SUMMER(2)       WINTER(3)
                                            ---------       ---------
<S>                   <C>                   <C>             <C>
KINGSGATE             MALIN                 1,023,120(4)    1,081,990
</TABLE>

(1) Pursuant to Paragraph 29 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and delivery points as
"secondary receipt" and "secondary delivery" points. For example, Shipper may
designate Stanfield, Oregon and/or Spokane, Washington as secondary receipt
points.

(2) Summer- - months of May through October.

(3) Winter - - months of November through April,

(4) In accordance with FERC's October 1, 1993 order at Docket n. RS92-46
Shipper's firm Summer MDQ (Delivered) may exceed 1,023,120 MMBtu/d to the extent
firm capacity is available on PGT's original system. However, under no
circumstances may Shipper's firm Summer MDQ (Delivered) exceed 1,081,990
MMBtu/d.
<PAGE>
                                    EXHIBIT C

                                     TO THE
                      FIRM TRANSPORTATION SERVICE AGREEMENT
                        DATED____________________BETWEEN
                        PACIFIC GAS TRANSMISSION COMPANY
                                       AND
                         PACIFIC GAS & ELECTRIC COMPANY

Type of Replacement Service:

Replacement Shipper:

Receipt Point:

Delivery Point:

Maximum Daily Quantity:

Commencement of Credit:

Termination of Credit:

Level of Credit:            _____percent of the maximum rate defined as
                            ________________________________________________
                            ________________________________________________

                            Applicable for service under Rate Schedule FTS-1

Other Terms and Conditions:

1)__________________________________________________________________________

2)__________________________________________________________________________

3)__________________________________________________________________________

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 30
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE

1.       AVAILABILITY

         This rate schedule is available to any party (hereinafter called
         "Shipper") qualifying for service pursuant to the Commission's
         Regulations contained in 18 CFR Part 284, and who has executed a Firm
         Transportation Service Agreement with GTN in the form contained in this
         FERC Gas Tariff, Third Revised Volume No. 1-A.

2.       APPLICABILITY AND CHARACTER OF SERVICE

         This rate schedule shall apply to firm gas transportation services
         performed by GTN for Shipper pursuant to the executed Firm
         Transportation Service Agreement between GTN and Shipper. GTN shall
         receive from Shipper such daily quantities of gas up to the Shipper's
         Maximum Daily Quantity as specified in the executed Firm Transportation
         Service Agreement between GTN and Shipper plus the required quantity of
         gas for fuel and line loss associated with service under this Rate
         Schedule FTS-1 and redeliver an amount equal to the quantity received
         less the required quantity of gas for fuel and line loss. This
         transportation service shall be firm and not subject to curtailment or
         interruption except as provided in the Transportation General Terms and
         Conditions.

         Firm transportation service shall be subject to all provisions of the
         executed Firm Transportation Service Agreement between GTN and Shipper
         and the applicable Transportation General Terms and Conditions.

3.       RATES

         Shipper shall pay GTN each month the sum of the Reservation Charge,the
         Delivery Charge, plus any applicable Extension Charge, Overrun Charge
         and applicable surcharges for the quantities of natural gas delivered.
         The rate(s) set forth in GTN's current Effective Rates and Charges for
         Transportation of Natural Gas in this FERC Gas Tariff, Third Revised
         Volume No. 1-A are applied to transportation service rendered under
         this rate schedule.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 31
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

         3.1      Reservation Charge

                  The Reservation Charge shall be the sum of the Mileage and the
                  Non-Mileage Component:

                      (a)      Mileage Component

                      The Mileage Component shall be the product of the
                      currently effective Mileage Rate as set forth on Effective
                      Tariff Sheet No. 4, the distance, in pipeline miles, from
                      the Primary Point(s) of receipt to the Primary Point(s) of
                      Delivery on Mainline Facilities as set forth in Shipper's
                      Contract, and the Shipper's Maximum Daily Quantity at such
                      Point(s).

                      (b)      Non-Mileage Component

                      The Non-Mileage Component shall be the product of the
                      currently effective Non-Mileage Rate as set forth on
                      Effective Tariff Sheet No. 4 and the Shipper's Maximum
                      Daily Quantity at Primary Point(s) of Delivery on Mainline
                      Facilities.

                      (c)      Mitigation Revenue Recovery Surcharge

                      If Shipper is a Subject Shipper, the Mitigation Revenue
                      Recovery Surcharge for the Mileage and Non-Mileage
                      Components as set forth on Effective Tariff Sheet No. 4
                      shall be included in, and become a part of, the maximum
                      Mileage and Non-Mileage Base Reservation Rates used for
                      computing the Mileage and Non-Mileage Components of the
                      Reservation Charge. The Mileage Component shall be
                      designed to recover, on the basis of the mileage billing
                      determinants of the Subject Shippers underlying GTN's
                      currently effective rates, mileage mitigation revenues not
                      recovered from other shippers in accordance with Article
                      IV, Section 1(b) of the Stipulation and Agreement in
                      Docket No. RP94-149-000, et al., and the Non-Mileage
                      Component shall be designed to recover, on the basis of
                      the Non-Mileage billing determinants of the Subject
                      Shippers underlying GTN's currently effective rates,
                      Non-Mileage mitigation revenues not recovered from other
                      shippers in accordance with Article IV, Section 1(b) of
                      the Stipulation and Agreement in Docket No. RP94-149-000,
                      et al.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 32
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

3.1      Reservation Charge (Continued)

         (d)      Competitive Equalization Surcharge

         The Mileage and Non-Mileage components of the Competitive Equalization
         Surcharge as set forth on Effective Tariff Sheet No. 4 shall be
         included in, and become a part of, the maximum Mileage and Non-Mileage
         Base Reservation Rates used for computing the Mileage and Non-Mileage
         Components of the Reservation Charge of shippers that have contracted
         for service utilizing, in whole or in part, CES Capacity under a Firm
         Transportation Service Agreement having a term of one year or more and
         shippers that have obtained service rights from such shippers pursuant
         to Section 28 of the General Terms and Conditions of this FERC Gas
         Tariff. The Mileage Component shall be equal to the Mileage Component
         of the Mitigation Revenue Recovery Surcharge and the Non-Mileage
         Component shall be equal to the Non-Mileage Component of the Mitigation
         Revenue Recovery Surcharge. Shippers to which the Competitive
         Equalization Surcharge applies, other than shippers that have obtained
         service pursuant to Section 28 of the General Terms and Conditions of
         this FERC Gas Tariff, shall be identified on Effective Tariff Sheet No.
         11.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 33
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

3.1      Reservation Charge (Continued)

         (e)      Shipper's obligation to pay the Reservation Charge and
                  applicable Reservation Surcharge is independent of Shipper's
                  ability to obtain export authorization from the National
                  Energy Board of Canada, Canadian provincial removal authority,
                  and/or import authorization from the United States Department
                  of Energy, and shall begin with the execution of the Firm
                  Transportation Service Agreement by both parties. The
                  Reservation Charge and Reservation Surcharge due and payable
                  shall be computed beginning in the month in which service is
                  first available (prorated if beginning in the month in which
                  service is available on a date other than the first day of the
                  month). Thereafter, the monthly Reservation Charge and
                  Reservation Surcharge shall be due and payable each month
                  during the Initial (and Subsequent) Term(s) of the Shipper's
                  executed Firm Transportation Service Agreement and is
                  unaffected by the quantity of gas transported by GTN to
                  Shipper's delivery point(s) in any month except as provided
                  for in Paragraphs 3.10 and 3.11 of this rate schedule.

3.2      Delivery Charge

         The Delivery Charge shall be the product of the Delivery Rate as set
         forth on Effective Tariff Sheet No. 4, the quantities of gas delivered
         in the month (in Dth) (excluding Authorized Overrun) at point(s) of
         delivery on Mainline Facilities, and the distance, in pipeline miles,
         from the point(s) of receipt to point(s) of delivery on Mainline
         Facilities.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 34
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

         3.3      Extension Charge

                  If Shipper designates a Primary Point of delivery on an
                  Extension Facility, then in addition to all other charges that
                  are applicable, Shipper shall pay the Extension Charge, which
                  shall consist of a reservation and delivery component.

                  (a)      The reservation component of the Extension Charge
                           shall be the product of Shipper's Maximum Daily
                           Quantity at the Primary Point(s) of delivery on the
                           Extension Facility, the applicable Extension
                           reservation rate as set forth on Effective Tariff
                           Sheet No. 4, and the distance, in pipeline miles,
                           from the Receipt Point(s) on the Extension Facility
                           to the Primary Point(s) of delivery.

                  (b)      The delivery component of the Extension Surcharge
                           shall be the product of the quantities delivered at
                           the point(s) of delivery on the Extension Facility,
                           the applicable Extension delivery rate as set forth
                           on Effective Tariff Sheet No. 4, and the distance, in
                           pipeline miles, from the Receipt Point(s) on the
                           Extension Facility to the point(s) of delivery.

         3.4      Authorized Overrun Charge

                  Quantities in excess of Shipper's MDQ shall be transported
                  when capacity is available on the GTN system and when the
                  provision of such Authorized Overruns shall not effect any
                  Shipper's rights on the GTN System. Authorized Overruns are
                  interruptible in nature. The rate charged shall be the same as
                  the rates and charges for interruptible transportation under
                  Rate Schedule ITS-1 as set forth on effective Tariff Sheet No.
                  4, and such Authorized Overruns shall be subject to the
                  priority of service provisions of Paragraph 19 of the
                  Transportation General Terms and Conditions.

         3.5      Applicability of Surcharges

                  Shipper shall pay all reservation and usage surcharges
                  applicable to the service provided to such Shipper as set
                  forth in GTN's FERC Gas Tariff, Third Revised Volume No. 1-A.
                  such surcharges shall be deemed to be part of Shipper's
                  reservation and Delivery Charges.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 35
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

         3.6      Shipper shall pay the Maximum Reservation Charge, and the
                  Maximum Delivery Charge for service under this Rate Schedule
                  unless GTN offers to discount the Mileage Rate components or
                  the Non-Mileage Rate components of the Reservation Rate or the
                  Delivery Rate or the GRI surcharge under this rate schedule.
                  If GTN elects to discount any such rate, GTN shall, up to
                  forty-eight (48) hours prior to such discount, by written
                  notice, advise Shipper of the effective date of such charges
                  and the quantity of gas so affected; provided, however, such
                  discount shall not be anticompetitive or unduly discriminatory
                  between individual shippers. The rates for service under this
                  rate schedule shall not be discounted below the Minimum
                  Reservation Charge, the Minimum Delivery Rate, and applicable
                  ACA Surcharge.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 36
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

         3.7      Reserved

         3.8      Backhauls (as defined in Paragraph 1.30 of the Transportation
                  General Terms and Conditions) shall be subject to the same
                  charges as forward haul (as defined in Paragraph 1.29 of the
                  Transportation General Terms and Conditions) except that no
                  gas shall be retained by GTN for compressor station fuel, line
                  loss and other unaccounted-for gas. Backhauls are subject to
                  the operating conditions of GTN's pipeline and will not be
                  made available to Shipper if GTN determines, in its sole
                  discretion, that such transportation is operationally
                  infeasible or otherwise not available.

         3.9      Reserved

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 37
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.       RATES (Continued)

         3.10     Capacity Release

                  (a)      Releasing Shippers:

                           Shipper shall have the option to release capacity
                           pursuant to the provisions of GTN's capacity release
                           program as specified in the Transportation General
                           Terms and Conditions. Shipper may release its
                           capacity, up to Shipper's Maximum Daily Quantity
                           under this rate schedule, in accordance with the
                           provisions of Paragraph 28 of GTN's Transportation
                           General Terms and conditions of this FERC Gas Tariff,
                           Third Revised Volume No. 1-A. Shipper shall pay a fee
                           associated with the marketing of capacity by GTN (if
                           applicable) in accordance with Paragraph 28 of the
                           Transportation General Terms and Conditions. This fee
                           shall be negotiated between GTN and the Releasing
                           Shipper.

                  (b)      Replacement Shippers:

                           Shipper may receive released capacity service under
                           this rate schedule pursuant to Paragraph 28 of the
                           Transportation General Terms and Conditions and is
                           required to execute a service agreement in the form
                           contained for capacity release under Rate Schedule
                           FTS-1 in this Third Revised Volume No. 1-A.

                           Shipper shall pay GTN each month for transportation
                           service under this rate schedule and as set forth in
                           GTN's current Statement of Effective Rates and
                           Charges in this Third Revised Volume No. 1-A. Charges
                           to be paid shall be the sum of the Reservation
                           Charge, Delivery Charge, and other applicable
                           surcharges or penalties.

                           The rates paid by Shipper receiving capacity release
                           transportation service shall be adjusted as provided
                           on Exhibit R in the executed Transportation Service
                           Agreement For Capacity Release between GTN and
                           Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 38
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.11     Reservation Charge Credit - Malin Primary Delivery Point

         If GTN fails to deliver to Malin, Oregon ninety-five percent (95%) or
         more of the aggregate Confirmed Daily Nominations (as hereinafter
         defined) of all Shippers with a Malin primary delivery point receiving
         service under this rate schedule (hereinafter referred to as the
         "Non-Deficiency Amount") for more than twenty-five (25) days in any
         given Contract Year, then for each day during that Contract Year in
         excess of twenty-five (25) days that GTN so fails to deliver the
         Non-Deficiency Amount (a "Credit Day") Shipper, as its sole remedy,
         shall be entitled to a Reservation Charge Credit calculated in the
         manner hereinafter set forth.

         For the purpose of this Paragraph 3.10, Confirmed Daily Nomination
         shall mean for any day, the lesser of (1) Shipper's Maximum Daily
         Quantity or (2) the actual quantity of gas that the connecting pipeline
         upstream of GTN is capable of delivering for Shipper's account to GTN
         at Shipper's primary point of receipt(s) on GTN less Shipper's
         requirement to provide compressor fuel and line losses under the
         Statement of Effective Rates and Charges of GTN's FERC Gas Tariff,
         Third Revised Volume No. 1-A or (3) the quantity of gas that Pacific
         Gas And Electric Company (PG&E) is capable of accepting at Malin for
         Shipper's account or (4) Shipper's nomination to GTN.

         The Reservation Charge Credit for each Credit Day for a particular
         Shipper shall be computed as follows:

              Reservation Charge      A             B - C
              Credit for Each        -----     x    ------
              Credit Day          = (30.4 )        (  B   )

         where  A =   Shipper's Monthly Reservation Charge

                B =   Shipper's confirmed daily nomination for the
                      Credit Day

                C =   Actual quantity of gas delivered by GTN to PG&E Malin
                      for Shipper's account for the Credit Day

         Except as provided for in Paragraph 3.11 of this rate schedule, this
         Reservation Charge Credit is Shipper's sole remedy for nondelivery of
         gas by GTN.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 39
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

3.12     Reservation Charge Credit - Other than Malin Primary Delivery Point

         If GTN fails to deliver Forward-haul service on a Primary Path to a
         primary delivery point on its system other than Malin, Oregon,
         ninety-five percent (95%) or more of the aggregate Confirmed Daily
         Nominations (as hereinafter defined) of all Shippers at such primary
         delivery point other than Malin receiving service under this rate
         schedule (hereinafter referred to as the "Non-Deficiency Amount") for
         more than twenty-five (25) days in any given Contract Year, then for
         each day during that Contract Year in excess of twenty-five (25) days
         that GTN so fails to deliver the Non-Deficiency Amount (a "Credit Day")
         Shipper, as its sole remedy, shall be entitled to a Reservation Charge
         Credit calculated in the manner hereinafter set forth.

         For the purpose of this Paragraph 3.12, Confirmed Daily Nomination
         shall mean for any day, the lesser of (1) Shipper's Maximum Daily
         Quantity or (2) the quantity of gas that the connecting downstream
         pipeline(s), local distribution company pipeline(s), or end-user(s)
         is/are capable of accepting for Shipper's account at Shipper's point(s)
         of primary delivery on GTN or (3) the quantity of gas that the
         connecting pipeline upstream of GTN is capable of delivering to GTN for
         Shipper's account to GTN at Shipper's primary point of receipt(s) on
         GTN less Shipper's requirement to provide compressor fuel and line
         losses under the Statement of Effective Rates and Charges of GTN's FERC
         Gas Tariff, Third Revised Volume No. 1-A or (4) Shipper's nomination to
         GTN.

         The Reservation Charge Credit for each Credit Day for a particular
         Shipper shall be computed as follows:

            Reservation Charge      A             B - C
            Credit for Each        -----     x    ------
            Credit Day          = (30.4 )        (  B   )

          where  A =   Shipper's Monthly Reservation Charge

                 B =   Shipper's confirmed daily nomination for the
                       Credit Day

                 C =   Actual quantity of gas delivered by GTN to a Shipper's
                       primary delivery point(s) (other than Malin) for
                       Shipper's account for the Credit Day

         Except as provided for in Paragraph 3.10 of this rate schedule this
         Reservation Charge Credit is Shipper's sole remedy for nondelivery of
         gas by GTN.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 40
Third Revised Volume No. 1-A

                               Rate Schedule FTS-1
                           Firm Transportation Service
                                   (Continued)

3.       RATES (Continued)

         3.13     NEGOTIATED RATES

                  Notwithstanding any provision of GTN's Tariff to the contrary,
                  GTN and Shipper may mutually agree in writing to a Negotiated
                  Rate (including a Negotiated Rate Formula) with respect to the
                  rates, rate components, charges, or credits that are otherwise
                  prescribed, required, established, or imposed by this Rate
                  Schedule or by any other applicable provision of GTN's Tariff.

                  Such Negotiated Rate shall be set forth in Attachment B to the
                  Firm Transportation Service Agreement and GTN shall make any
                  filings with the Commission necessary to effectuate such
                  Negotiated Rate.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 41
Third Revised Volume No. 1-A

                               RATE SCHEDULE FTS-1
                           FIRM TRANSPORTATION SERVICE
                                   (Continued)

4.       FUEL AND LINE LOSS

         For all Forward Hauls, Shipper shall furnish to GTN quantities of gas
         for compressor station fuel, line loss and other utility purposes, plus
         other unaccounted for gas used in the operation of GTN's combined
         pipeline system between the International Boundary near Kingsgate,
         British Columbia and the Oregon-California boundary for the
         transportation quantities of gas delivered by GTN to Shipper, based
         upon the effective fuel and line loss percentages in accordance with
         Paragraph 37 of the General Terms and Conditions. No fuel charge shall
         apply to transactions that do not involve a forward haul movement of
         gas.

5.       TRANSPORTATION GENERAL TERMS AND CONDITIONS

         All of the Transportation General Terms and Conditions are applicable
         to this rate schedule, unless otherwise stated in the executed Firm
         Transportation Service Agreement between GTN and Shipper. Any future
         modifications, additions or deletions to said Transportation General
         Terms and Conditions, unless otherwise provided, are applicable to firm
         transportation service rendered under this rate schedule, and by this
         reference, are made a part hereof.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                            Original Sheet No. 41
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>
Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 100
Third Revised Volume No. 1-A

                  TRANSPORTATION GENERAL TERMS AND CONDITIONS
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
Paragraph No.                       Provision                               Sheet No.
<S>            <C>                                                          <C>
    1          Definitions                                                     101
    2          Gas Research Institute Charge Adjustment Provision              108
    3          Quality of Gas                                                  110
    4          Measuring Equipment                                             112
    5          Measurements                                                    114
    6          Inspection of Equipment and Records                             116
    7          Billing                                                         117
    8          Payment                                                         118
    9          Notice of Changes in Operating Conditions                       119
    10         Force Majeure                                                   120
    11         Warranty of Eligibility for Transportation                      121
    12         Possession of Gas and Responsibility                            121
    13         Indemnification                                                 121
    14         Arbitration                                                     122
    15         Governmental Regulations                                        122
    16         Miscellaneous Provision                                         123
    17         Transportation Service Agreement                                123
    18         Operating Provisions                                            125
    19         Priority of Service, Scheduling and Nominations                 142
    20         Curtailment                                                     159
    21         Balancing                                                       160
    22         Annual Charge Adjustment (ACA) Provision                        170
    23         Shared Operating Personnel and Facilities                       170
    24         Complaint Procedures                                            171
    25         Information Concerning Availability and Pricing
               of Transportation Service and Capacity Available for
               Transportation                                                  172
    26         Market Centers                                                  173
    27         Planned GTN Capacity Curtailments and Interruptions             174
    28         Capacity Release                                                175
    29         Flexible Receipt and Delivery Points                            200
    30         Gas Supply Restructuring Transition Costs                       202
    31         Negotiated Rates                                                208
    32         Equality of Transportation Service                              210
    33         Right of First Refusal Upon Termination of
               Firm Shipper's Service Agreement                                211
    34         Electronic Communications                                       216
    35         Competitive Equalization Surcharge Revenue Credit               221
    35A        Crediting of Interruptible Transportation Revenues for
               Extensions                                                      222
    36         Discount Policy                                                 225
    37         Adjustment Mechanism for Fuel, Line Loss and Other
               Unaccounted For Gas Percentages                                 227
    38         Reserved                                                        229
    39         Sales of Excess Gas                                             230
    40         Gas Industry Standards                                          231
</TABLE>

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 101
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

1.       DEFINITIONS

         1.1      Gas Day: In accordance with NAESB Standard 1.3.1, Version 1.5,
                  the term "Gas Day" shall be 9:00 a.m. to 9:00 a.m. Central
                  Clock Time (7:00 a.m. to 7:00 a.m. Pacific Clock Time).

         1.1.1    Business Day: The term "Business Day" shall mean Monday
                  through Friday, excluding U.S.Federal Banking Holidays for
                  transactions in the United States and similar holidays for
                  transactions occurring in Canada and Mexico.

         1.2      Month: The word "month" shall mean a period extending from the
                  beginning of the first day in a calendar month to the
                  beginning of the first day in the next succeeding calendar
                  month.

         1.3      Maximum Daily Quantity: The term "Maximum Daily Quantity"
                  (MDQ)shall mean the maximum daily quantity in Dth of gas which
                  GTN agrees to deliver exclusive of an allowance for compressor
                  station fuel, line loss and other unaccounted for gas and
                  transport for the account of Shipper to Shipper's point(s) of
                  delivery on each day during each year during the term of
                  Shipper's Transportation Service Agreement with GTN.

         1.4      Marketing Affiliate: The term "marketing affiliate" shall mean
                  Pacific Gas and Electric Company and CEG Energy Options Inc.

         1.5      Gas: The word "gas" shall mean natural gas.

         1.6      Cubic Foot of Gas: The term "cubic foot of gas" is defined in
                  accordance with NAESB Standard 2.3.9, Version 1.5, as that
                  quantity of gas which measures one (1) cubic foot at standard
                  conditions of 14.73 dry psia, 60 degrees F. For gas volumes
                  reported in cubic meters, the standard conditions are 101.325
                  kPa, 15 degrees C. Standard 2.3.9, Version 1.5 states in full
                  "Standardize the reporting basis for Btu as 14.73 psia and 60
                  degrees F (101.325 kPa and 15 degrees C, and dry). Standardize
                  the reporting basis for gigacalorie as 1.035646 Kg/cm2 and
                  15.6 degrees C and dry. Standardize the reporting basis for
                  gas volumes as cubic foot at standard conditions of 14.73
                  psia, 60 degrees, F and dry. For gas volumes reported in cubic
                  meters, the standard conditions are 101.325 kPa, 15 degrees C,
                  and dry."

         1.7      Mcf: The term "Mcf" shall mean one thousand (1,000) cubic feet
                  of gas and shall be measured as set forth in Paragraph 5
                  hereof. The term "MMcf" shall mean one million (1,000,000)
                  cubic feet of gas.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 102
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS

1.       DEFINITIONS (Continued)

         1.8      Dekatherm: The term "Dekatherm" (or "Dth") is the quantity of
                  heat energy equivalent to one million (1,000,000 British
                  Thermal Units (MMBtu). Dth is the standard quantity for
                  Nominations, confirmations and Scheduled Quantities in the
                  United States. For purposes of this tariff and associated
                  Service Agreements, the terms MMBtu and Dth are synonymous.

         1.9      Btu: The term "Btu" shall mean British Thermal Unit. The term
                  "MMBtu" shall mean one million (1,000,000) British Thermal
                  Units. The reporting basis for Btu shall be standardized as
                  14.73 dry psia and 60 degrees (60o) Fahrenheit (101.325 kPa
                  and 15.6 degrees C).

         1.10     Gross Heating Value. The term "gross heating value" shall mean
                  the number of Btus in a cubic foot of gas at a temperature of
                  sixty degrees (600) Fahrenheit, saturated with water vapor,
                  and at an absolute pressure equivalent to thirty (30) inches
                  of mercury at thirty-two degrees (320) Fahrenheit.

         1.11     Psig. The term "psig" shall means pounds per square inch
                  gauge.

         1.12     Releasing Shipper: A firm transportation Shipper which intends
                  to post its service to be released to a Replacement Shipper,
                  has posted the service for release, or has released its
                  service.

         1.13     Replacement Shipper: A Shipper which has contracted to utilize
                  a Releasing Shipper's service for a specified period of time.

         1.14     Posting Period: The period of time during which a Releasing
                  Shipper may post, or have posted by the pipeline, all or a
                  part of its service for release to a Replacement Shipper.

         1.15     Release Term: The period of time during which a Releasing
                  Shipper intends to release, or has released all or a portion
                  of its contracted quantity of service to a Replacement
                  Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 103
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

1.       DEFINITIONS (Continued)

         1.16     Bid Period: The period of time during which a Replacement
                  Shipper may bid to contract for a parcel which has been posted
                  for release by a Releasing Shipper.

         1.17     Parcel: The term utilized to describe an amount of capacity,
                  expressed in Dth/d, from a specific receipt point to a
                  specific delivery point for a specific period of time which is
                  released and bid on pursuant to the capacity release
                  provisions contained in Paragraph 28 of these Transportation
                  General Terms and Conditions.

         1.18     Primary Release: The term used to describe the release of
                  capacity by a Releasing Shipper receiving service under a Part
                  284 firm transportation rate schedule.

         1.19     Secondary Release: The term used to describe the release of
                  capacity by a Replacement Shipper receiving service under a
                  Part 284 firm transportation rate schedule.

         1.20     Bid Reconciliation Period: The period of time subsequent to
                  the Bid Period during which bids are evaluated by GTN.

         1.21     Match Period: The period of time subsequent to the Bid
                  Reconciliation Period and before the notification deadline for
                  awarding capacity for Prearranged Deal C during which the
                  Prearranged Shipper may match any higher bids for the Parcel.

         1.22     Mainline Facilities: The term "Mainline Facilities" shall mean
                  the 36-inch and 42-inch mains and appurtenant facilities
                  extending from the interconnection with the pipeline
                  facilities of Alberta Natural Gas Company and Foothills Pipe
                  Lines (South B.C.) Ltd., near Kingsgate, British Columbia to
                  the interconnection with the pipeline facilities of Pacific
                  Gas and Electric Company near Malin, Oregon.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 104
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

1.       DEFINITIONS (Continued)

         1.23     Extension Facilities: The term "Extension Facilities" shall
                  mean the 12-inch mains and appurtenant facilities extending
                  from GTN's mainline facilities at Milepost 304.25 and the
                  16-inch and 12-inch mains and appurtenant facilities extending
                  from GTN's Mainline Facilities at Milepost 599.20 that were
                  authorized in Docket No. CP93-618-000. The term "Extension
                  Facility" shall mean one of the Extension Facilities.

         1.24     Subject Shipper: The term "Subject Shipper" shall mean the
                  Shippers identified in Appendix G of the Stipulation and
                  Agreement in Docket No. RP94-149-000, et al., and Shippers
                  that have obtained service rights from such Shippers.

         1.25     Nominations: A "Nomination" shall be the provision of
                  information to GTN necessary to effectuate a transportation
                  transaction. Specific Nomination procedures are set forth in
                  Section 19.4 of the General Terms and Conditions of
                  Transporter's FERC Gas Tariff.

         1.26     Intraday Nomination: An "Intraday Nomination" is a Nomination
                  submitted after the Nomination deadline whose effective time
                  is no earlier than the beginning of the Gas Day and runs
                  through the end of the Gas Day.

         1.27     Gas Industry Standards Board Standards: The term "Gas Industry
                  Standards Board Standards" or "GISB Standards" shall mean the
                  standardized business practices and electronic communication
                  practices promulgated by the Gas Industry Standards Board from
                  time to time and incorporated in the Code of Federal
                  Regulations by the Federal Energy Regulatory Commission.

         1.28     CES Capacity: The term "CES Capacity" shall mean the
                  additional firm capacity on GTN's Mainline Facilities between
                  the northernmost point near Kingsgate, British Columbia, and
                  points downstream thereof that was made available for
                  subscription on a firm basis as a result of the expansion of
                  GTN's system authorized in Docket No. CP98-167.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 105
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

1.       DEFINITIONS (Continued)

         1.29     Forward Haul: The term "Forward Haul" shall refer to
                  transportation service on GTN's system in which the nominated
                  direction of flow from receipt point to delivery point is in
                  the same direction as physical gas flow on the GTN system.

         1.30     Backhaul: The term "Backhaul" shall refer to transportation
                  service on GTN's system in the opposite direction of a Forward
                  Haul as defined in Section 1.29 above.

         1.31     Primary Path: The term "Primary Path" shall mean the
                  transportation path established by the receipt and delivery
                  points as set forth in Shipper's executed Service Agreement. A
                  shipper's Primary Path may be either a Forward Haul or a
                  Backhaul as defined in Sections 1.29 and 1.30 above.

         1.32     Reverse Path: The term "Reverse Path" shall mean the
                  transportation path that is in the opposite direction of that
                  Shipper's Primary Path as defined in Section 1.31 above. A
                  shipper's Reverse Path may be either a Forward Haul or a
                  Backhaul as defined in Sections 1.29 and 1.30 above. Reverse
                  Path transactions are subject to the operating conditions of
                  GTN's pipeline and will not be made available to Shipper if
                  GTN determines, in its sole discretion, that such
                  transportation is operationally infeasible or otherwise not
                  available.

         1.33     Negotiated Rate. The term "Negotiated Rate" shall mean a rate
                  (including a Negotiated Rate Formula) that GTN and a Shipper
                  have agreed will be charged for service under Rate Schedules
                  FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 where, for all or a portion
                  of the contract term, one or more of the individual components
                  of such rate may exceed the maximum rate, or be less than the
                  minimum rate, for such component set forth in GTN's tariff for
                  the given service. Any Agreement entered into after the
                  effective date of this subsection which provides for a rate
                  under Rate Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 other
                  than the applicable maximum rate shall contain a provision
                  setting out the mutual agreement of the parties as to whether
                  the pricing terms represent a discounted rate or a negotiated
                  rate.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 106
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

1.       DEFINITIONS (Continued)

         1.34     Negotiated Rate Formula. The term "Negotiated Rate Formula"
                  shall mean a rate formula that GTN and a Shipper have agreed
                  will apply to service under a specific contract under Rate
                  Schedules FTS-1, LFS-1, ITS-1, AIS-1 or PS-1 which results in
                  a rate where, for all or a portion of the contract term, one
                  or more of the individual components of such rate may exceed
                  the maximum rate, or may be less than the minimum rate, for
                  such component set forth in GTN's Tariff for the given
                  service.

         1.35     Recourse Rate. The term "Recourse Rate shall mean the
                  applicable maximum rate that would apply to a service but for
                  the rate flexibility allowed under Section 31 of this Gas
                  Tariff.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 107
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 108
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

2.       GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION

         2.1      Purpose: GTN has joined with other gas enterprises in the
                  formation of, and participation in, the activities and
                  financing of the Gas Research Institute (GRI), an Illinois Not
                  For Profit corporation. GRI has been organized for the purpose
                  of sponsoring Research, Development and Demonstration (RD&D)
                  programs in the field of natural and manufactured gas for the
                  purpose of assisting all segments of the gas industry in
                  providing adequate, reliable, safe, economic and
                  environmentally acceptable gas service for the benefit of gas
                  consumers and the general public.

                  For the purpose of funding GRI's approved expenditures, this
                  Paragraph 2 establishes a GRI Adjustment Charge to be
                  applicable to GTN's Rate Schedules ITS-1, AIS-1, PS-1 and
                  FTS-1 in this FERC Gas Tariff, Third Revised Volume No. 1-A;
                  provided, however, such charge shall not be applicable in the
                  event gas is delivered to a downstream interstate pipeline
                  that is a member of GRI.

         2.2      Basis for the GRI Adjustment Charges: The rate schedule
                  specified in Paragraph 2.1 hereof shall include an increment
                  for a GRI Adjustment Charge for RD&D. Such GRI Adjustment
                  Charge shall be that increment, adjusted to GTN's pressure
                  base and heating value if required, which has been approved by
                  Federal Energy Regulatory Commission Orders approving GRI's
                  RD&D expenditures. The GRI Adjustment Charge shall be
                  reflected in the current Statement of Effective Rates and
                  Charges for Transportation of Natural Gas in this FERC Gas
                  Tariff, Third Revised Volume No. 1-A.

         2.3      Filing Procedure: The notice period and proposed effective
                  date of filings pursuant to this paragraph shall be as
                  permitted under Section 4 of the Natural Gas Act; provided,
                  however, that any such filing shall not become effective
                  unless it becomes effective without suspension or refund
                  obligation.

         2.4      Remittance to GRI: GTN shall remit to GRI, not later than
                  fifteen (15) days after the receipt thereof, all monies
                  received by virtue of the GRI Adjustment Charge or the Check
                  the Box procedure, less any amounts properly payable to a
                  Federal, State or Local authority relating to the monies
                  received hereunder.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 109
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

2.       GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION (Continued)

         2.5      A high load factor Shipper is a Shipper with a load factor
                  greater than fifty (50) percent. A low load factor Shipper is
                  a Shipper with a load factor equal to or less than fifty (50)
                  percent. A Shipper's load factor for each service agreement
                  shall be determined annually using the most recent twelve (12)
                  months of actual throughput available (including throughput
                  using capacity released pursuant to Paragraph 28 of the
                  Transportation General Terms and Conditions). The Shipper's
                  load factor shall remain in effect during the calendar year.
                  In the event twelve (12) months of actual data does not exist,
                  the Shipper's load factor shall be determined monthly based on
                  the latest recorded throughput data. The appropriate GRI
                  demand surcharge is applied monthly until such time as twelve
                  (12) months of actual data is accumulated. At such time the
                  Shipper's load factor shall remain in effect during the
                  calendar year.

         2.6      For the purpose of funding GRI's approved expenditures, and
                  subject to the further terms and conditions set forth in the
                  Stipulation and Agreement Concerning the Post-1993 GRI Funding
                  Mechanism and the orders approving such Stipulation and
                  Agreement found at Gas Research Institute, 62 FERC P. 61,316
                  (1993) this Paragraph 2 establishes a GRI Funding Unit which
                  shall be collected for quantities of gas transported under
                  GTN's rate schedules provided, however, such charge shall not
                  be applicable to discounted transactions except where the
                  discounted rate is less than the GRI Funding Unit. In this
                  instance GTN shall remit that portion of the GRI Funding Unit
                  actually collected. For purposes of discounted transactions,
                  any GRI Funding Unit shall be considered to be the first
                  component of rates discounted. The GRI Funding Unit may be
                  discounted to zero and shall not be applied to the same
                  quantity of gas more than once.

         2.7      Voluntary GRI Contributions. GTN has agreed to be a collection
                  agent for shippers that voluntarily choose to support GRI
                  through a "check the box" procedure on GTN's invoices. Amounts
                  collected will be remitted to GRI in accordance with the
                  requirements of Section 2.4 of this FERC Gas Tariff. The
                  amounts collected pursuant to this procedure will not be part
                  of GTN's rates.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 110
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

3.       QUALITY OF GAS

         3.1      Quality Standards: The gas which Shipper delivers hereunder to
                  GTN for transport (and the gas which GTN transports hereunder
                  for Shipper) shall be merchantable gas at all times complying
                  with the following quality requirements:

                  (a)      Heating Value: The gas shall have a gross heating
                           value of not less than nine hundred ninety-five (995)
                           Btus per standard cubic foot on a dry basis, but with
                           the consent of Shipper, GTN may deliver gas at a
                           lower gross heating value.

                  (b)      Freedom from Objectionable Matter: The gas:

                           (1)      Shall be commercially free from sand, dust,
                                    gums, crude oil, impurities and other
                                    objectionable substances which may be
                                    injurious to pipelines or which may
                                    interfere with its transmission through
                                    pipelines or its commercial utilization.

                           (2)      Shall not have a hydrocarbon dew-point in
                                    excess of fifteen degrees (15m) Fahrenheit
                                    at pressures up to eight hundred (800) psig.

                           (3)      Shall not contain more than one-quarter
                                    (1/4) grain of hydrogen sulfide per one
                                    hundred (100) standard cubic feet.

                           (4)      Shall not contain more than ten(10) grains
                                    of total sulphur per one hundred (100)
                                    standard cubic feet.

                           (5)      Shall not contain more than two percent (2%)
                                    by volume of carbon dioxide.

                           (6)      Shall not contain more than four (4) pounds
                                    of water vapor per one million (1,000,000)
                                    standard cubic feet.

                           (7)      Shall not exceed one hundred ten degrees
                                    (110m) Fahrenheit in temperature at the
                                    point of measurement.

                           (8)      Shall be as free of oxygen as it can be kept
                                    through the exercise of all reasonable
                                    precautions, and shall not in any event
                                    contain more than four-tenths of one percent
                                    (0.4%) by volume of oxygen.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 111
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

3.       QUALITY OF GAS (Continued)

         3.2      Quality Tests:

                  (a)      The quality specifications of the gas received by GTN
                           hereunder shall be determined by tests which GTN
                           shall cause to be made at the International Boundary
                           or such other locations on GTN's system if required
                           accordance with this Paragraph 3.2.

                  (b)      The gross heating value of gas delivered hereunder
                           shall be determined from read-outs of continuously
                           operating measuring instruments. The method shall
                           consist of one or more of the following:

                           (1)      calorimeter

                           (2)      gas chromatograph

                           (3)      any other method mutually agreed upon by the
                                    parties.

                           Measurement of gross heating value with the
                           calorimeters shall comply with the standards set
                           forth in the American Society for Testing and
                           Materials' ASTM D 1826. Analysis of gas with gas
                           chromatograph shall comply with the standards set
                           forth in ASTM D 1945. Calculation of the gross
                           heating value from compositional analysis by gas
                           chromatography shall comply with the standards set
                           forth in ASTM D 3588.

                           GTN or its agent shall calibrate and maintain the
                           gross heating value measurement device at intervals
                           as agreed upon by GTN and Shipper. Shipper shall have
                           access to GTN's devices and shall be allowed to
                           inspect the sevices and all charts or other records
                           of measurement at any reasonable time.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 112
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

3.       QUALITY OF GAS (Continued)

         3.2      Quality Tests (Continued)

                  (c)      Tests shall be made to determine the total sulphur,
                           hydrogen sulfide, carbon dioxide and oxygen content
                           of the gas, by approved standard methods in general
                           use in the gas industry, and to determine the
                           hydrocarbon dew-point and water vapor content of such
                           gas by methods satisfactory to the parties. Tests
                           shall be made frequently enough to ensure that the
                           gas is conforming continuously to the quality
                           requirements. Shipper shall have the right to require
                           GTN to have remedied any deficiency in quality of the
                           gas and, in the event such deficiency is not
                           remedied, the right, in addition to all other
                           remedies available to it by law, to refuse to accept
                           such deficient gas until such deficiency is remedied.

4.       MEASURING EQUIPMENT

         4.1      Installation: Unless GTN and Shippers agree otherwise, all gas
                  volume measuring equipment, devices and materials at the
                  point(s) of receipt and/or delivery shall be furnished and
                  installed by GTN at Shipper's expense including the tax-on-tax
                  effect. All such equipment, devices and materials shall be
                  owned, maintained and operated by GTN. Shipper may install and
                  operate check measuring equipment provided it does not
                  interfere with the use of GTN's equipment.

         4.2      Testing Meter Equipment: The accuracy of either GTN's or
                  Shippers measuring equipment shall be verified by test, using
                  means and methods acceptable to the other party, at intervals
                  mutually agreed upon, and at other times upon request. Notice
                  of the time and nature of each test shall be given by the
                  entity conducting the test to the other entity sufficiently in
                  advance to permit convenient arrangement for the presence of
                  the representative of the other entity. If, after notice, the
                  other entity fails to have a representative present, the
                  results of the test shall nevertheless be considered accurate
                  until the next test. If any of the measuring equipment is
                  found to be registering inaccurately in any percentage, it
                  shall be adjusted at once to read as accurately as possible.
                  All tests of such measuring equipment shall be made at the
                  expense of the entity conducting the same, except that the
                  other entity shall bear the expense of tests made at its
                  request if the inaccuracy is found to be two percent (2%) or
                  less.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 113
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

4.       MEASURING EQUIPMENT (Continued)

         4.3      Correction and Adjustment: If at any time any of the measuring
                  equipment is registering inaccurately by an amount exceeding
                  two percent (2%) at a reading corresponding to the average
                  hourly rate of flow, the previous readings of such equipment
                  shall be corrected to zero error for any period definitely
                  known or agreed upon, or if not so known or agreed upon, the
                  lesser of one-half (1/2) of the elapsed time since the last
                  test or six months from the production month with a
                  three-month rebuttal period, provided, however, that this
                  limitation shall not apply in the case of a deliberate
                  omission or misrepresentation or mutual mistake of fact. The
                  parties' other statutory or contractual rights shall not
                  otherwise be diminished by this limitation. If the measuring
                  equipment is out-of-service, the volume of gas delivered
                  during such period shall be determined:

                  (a)      By using the data recorded by any check measuring
                           equipment accurately registering; or

                  (b)      If such check measuring equipment is not registering
                           accurately but the percentage of error is
                           ascertainable by a calibration test, by using the
                           data recorded, corrected to zero error; or

                  (c)      If neither of the methods provided in (a) and (b)
                           above can be used, by estimating the quantity
                           delivered, by reference to deliveries under similar
                           conditions during a period when the equipment was
                           registering accurately.

                           No correction shall be made in the recorded volumes
                           of gas delivered hereunder for measuring equipment
                           inaccuracies of two percent (2%) or less, and in no
                           event shall inaccuracies less than 25 Mcf be
                           considered for adjustment.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 114
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

5.       MEASUREMENTS

         5.1      Metering: The gas shall be metered by one or more orifice,
                  turbine, ultrasonic, displacement or other-type meters, at the
                  discretion of GTN. All meters shall be installed and
                  maintained, and volumes shall be measured,in accordance with
                  applicable A.G.A. standards for the meter in question.

         5.2      Specific Gravity: The specific gravity of the gas delivered
                  hereunder shall be determined from the read-outs of
                  continuously operating measuring instruments. The method shall
                  consist of one of the following:

                  (a)      gravitometer

                  (b)      gas chromatography

                  (c)      other instruments acceptable to both parties

                  Analysis of chromatograph shall comply with the standards set
                  forth in ASTM D 1945. Calculation of the specific gravity from
                  compositional analysis by gas chromatography shall comply with
                  the standards set forth in ASTM D 3588. Measurement of the
                  specific gravity with a gravitometer shall comply with the
                  standards set forth in ASTM D 1070.

         5.3      Flowing Temperature: Flowing gas temperature shall be
                  continuously measured and used in flow calculations.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 115
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 116
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

6.       INSPECTION OF EQUIPMENT AND RECORDS

         6.1      Inspection of Equipment and Data: GTN and Shipper shall have
                  the right to inspect equipment installed or furnished by the
                  other, and the charts and other measurement or test data of
                  the other, at all times during business hours; but the
                  reading, calibration and adjustment of such equipment and
                  changing of charts shall be done only by the entity installing
                  or furnishing same. Unless GTN and Shipper otherwise agree,
                  each shall preserve all original test data, charts and other
                  similar records in such party's possession, for a period of at
                  least six (6) years.

         6.2      Information for Billing: When information necessary for
                  billing by GTN is in the control of Shipper, Shipper shall
                  furnish such information, estimated if actual is not
                  available, to GTN on or before the third (3rd) working day of
                  the month following the month transportation service was
                  rendered. If shipper furnishes estimated information, the
                  actual information shall be furnished to GTN on or before the
                  fifth (5th) working day of the month following the month
                  transportation service was rendered.

         6.3      Verification of Computations: GTN and Shipper shall have the
                  right to examine at reasonable times the books, records and
                  charts of the other to the extent necessary to verify the
                  accuracy of any statement, charge or computation made pursuant
                  to these Transportation General Terms and Conditions and to
                  the rate schedules to which they apply, within twelve (12)
                  months of any such statement, charge or computation. The time
                  limitation for disputing allocations shall be six (6) months
                  from the date of initial month-end allocation with a
                  three-month rebuttal period, provided, however, that this
                  limitation shall not apply in the case of a deliberate
                  omission or misrepresentation or mutual mistake of fact, and
                  shall not diminish the parties' other statutory or contractual
                  rights. In accordance with NAESB Standard 2.3.11, Version 1.5,
                  a meter adjustment or correction becomes a prior period
                  adjustment after the fifth (5th) business day following the
                  Business Month. Any measurement of prior period adjustments
                  are taken back to the production month. These provisions are
                  in accordance with NAESB Standard 2.3.7, Version 1.5, which
                  establishes a cutoff for the closing of measurement of 5
                  business days after business month.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003
<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 117
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

6.   INSPECTION OF EQUIPMENT AND RECORDS (Continued)

     6.3  Verification of Computations: (Continued)

          In accordance with NAESB Standard 2.3.14, Version 1.5, measurement
          data corrections should be processed within 6 months of the production
          month with a 3-month rebuttal period. However, it is recognized that
          this latter standard shall not apply in the case of deliberate
          omission or misrepresentation or mutual mistake of fact. Parties'
          other statutory or contractual rights shall not be diminished by this
          standard.

7.   BILLING

     7.1  Billing under all Rate Schedules: On or before the ninth (9th)
          business day of each month, GTN shall render a bill to each Shipper
          under all applicable Rate Schedules for the service(s) rendered during
          the preceding month, which is in accordance with NAESB Standard
          3.3.14, Version 1.5, which provides that the imbalance statement
          should be rendered prior to or with the invoice, and the
          transportation invoice should be prepared on or before the 9th
          business day after the end of the production month. Rendered is
          defined as postmarked, time-stamped, and delivered to the designated
          site.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 118
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

8.   PAYMENT

     8.1  Payment under all Rate Schedules: On or before the tenth day following
          the date GTN's bill is rendered in accordance with Paragraph 7.1 of
          these General Terms and Conditions, each Shipper under all applicable
          Rate Schedules shall pay to or upon the order of GTN in lawful money
          of the United States at GTN's office in Portland, Oregon, the amount
          of the bill rendered by GTN. In accordance with NAESB Standard 3.3.17,
          Version 1.5, party making payment should submit supporting
          documentation; party receiving payment should apply payment per
          supporting documentation provided by the paying party; and if payment
          differs from invoiced amount, remittance detail should be provided
          with the payment except when payment is made by electronic funds
          transfer (EFT), in which case, the remittance detail is due within two
          Business Days of the payment due date. Shipper shall identify invoice
          numbers on all payments. In the event a Shipper disputes any portion
          of the invoice, Shipper shall pay that portion of the invoice not in
          dispute and provide supporting documentation identifying the basis for
          the dispute.

     8.2  Interest on Unpaid Amounts: Should Shipper fail to pay the amount of
          any bill rendered by GTN when such amount is due, interest thereon
          shall accrue from the due date until paid at the rate of interest
          effective from time to time under 18 CFR Section 154.67.

     8.3  Remedies for Failure to Pay: If a Shipper's failure to pay the
          undisputed portion of an invoice continues for thirty (30) days after
          payment is due, GTN, in addition to any other remedy it may have, may
          suspend further delivery of gas until such amount is paid.

          If Shipper's failure to pay extends beyond thirty (30) days after
          payment is due, in addition to suspending service under Shipper's
          Transporation Service Agreement(s), Transporter shall have the right
          to terminate service. To the extent that Transporter seeks to
          terminate a Shipper's Transportation Service Agreement, Transporter
          will provide written notice to Shipper, the Commission, and any
          Replacement Shipper(s) that has obtained temporary release capacity
          from Shipper, that if Shipper fails to make payment within fifteen
          (15) days, Transporter will terminate Shipper's Transportation Service
          Agreement(s) and may exercise any other remedy available to
          Transporter hereunder, at law or in equity.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 119
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

8.   PAYMENT (Continued)

     8.3  Remedies for Failure to Pay: (Continued)

          However, if Shipper, in good faith, disputes the amount of any bill or
          part thereof by providing written notice of its dispute including
          documentation identifying the basis of the dispute and 1) promptly
          pays to Transporter the undisputed amount, and 2) furnishes to
          Transporter a good and sufficient letter of credit in an amount and
          with surety satisfactory to Transporter, or provides other assurance
          acceptable to Transporter guaranteeing payment to Transporter of the
          amount ultimately found due upon the bill after a final determination
          that may be reached either by agreement or by judgement of the courts,
          as may be the case, then Transporter shall not be entitled to
          automatically suspend or terminate service under the Transportation
          Service Agreement(s) unless and until a default is made in the
          conditions of the letter of credit or other assurance; provided
          further that should Shipper prevail on the dispute, Transporter shall
          reimburse Shipper up to the reasonable and customary costs of the
          letter of credit or other assurance provided.

     8.4  Late Billing: If presentation of a bill by GTN is delayed after the
          date specified in Paragraph 7.1 hereof, then the time for payment
          shall be extended correspondingly unless Shipper is responsible for
          such delay.

     8.5  Adjustment of Billing Error: In accordance with NAESB Standard 3.3.15,
          Version 1.5, prior period adjustment time limits should be 6 months
          from the date of the initial transportation invoice and 7 months from
          date of initial sales invoice with a 3-month rebuttal period,
          excluding government-required rate changes. This standard shall not
          apply in the case of deliberate omission or misrepresentation or
          mutual mistake of fact. Parties' other statutory or contractual rights
          shall not otherwise be diminished by this standard.

9.   NOTICE OF CHANGES IN OPERATING CONDITIONS

     GTN and Shipper shall each ensure that the other is notified from time to
     time as necessary of expected changes in the rates of delivery or receipt
     of gas, or in the pressures or other operating conditions, and the reason
     for such expected changes, so that they may be accommodated when they
     occur.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 120
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

10.  FORCE MAJEURE

     10.1 If either party shall fail to perform any obligation imposed upon it
          by these Transportation General Terms and Conditions or by an executed
          Transportation Service Agreement, and such failure shall be caused, or
          materially contributed to, by force majeure which means any acts of
          God, strikes, lockouts, or other industrial disturbances, acts of
          public enemies, sabotage, wars, blockades, insurrections, riots,
          epidemics, landslides, lightning, earthquakes, floods, storms, fires,
          washouts, extreme cold or freezing weather, arrests and restraints of
          rulers and people, civil disturbances, explosions, breakage of or
          accident to machinery or lines of pipe, hydrate obstructions of lines
          of pipe, inability to obtain pipe, materials or equipment,
          legislative, administrative or judicial action which has been resisted
          in good faith by all reasonable legal means, any acts, omissions or
          causes whether of the kind herein enumerated or otherwise not
          reasonably within the control of the party invoking this paragraph and
          which by the exercise of due diligence such party could not have
          prevented, the necessity for making repairs to, replacing, or
          reconditioning machinery, equipment, or pipelines not resulting from
          the fault or negligence of the party invoking this paragraph, such
          failure shall be deemed not to be a breach of the obligation of such
          party, but such party shall use reasonable diligence to put itself in
          a position to carry out its obligations. Nothing contained herein
          shall be construed to require either party to settle a strike or
          lockout by acceding against its judgment to the demands of the
          opposing parties.

     10.2 No such cause as described in Paragraph 10.1 affecting the performance
          of either party shall continue to relieve such party from its
          obligation after the expiration of a reasonable period of time within
          which by the use of due diligence such party could have remedied the
          situation preventing its performance, nor shall any such cause relieve
          either party from any obligation unless such party shall give notice
          thereof in writing to the other party with reasonable promptness; and
          like notice shall be given upon termination of such cause.

     10.3 No cause whatsoever, including without limitation the failure of GTN
          to perform including the causes specified in Paragraph 10.1, shall
          relieve Shipper from its obligations to make payments due, including
          the payments of reservation charges for the duration of such cause
          except as provided for in Paragraphs 3.10 and 3.11 of Rate Schedule
          FTS-1.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 121
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

11.  WARRANTY OF ELIGIBILITY FOR TRANSPORTATION

     Any Shipper transporting gas on the GTN system under this FERC Gas Tariff,
     Third Revised Volume No. 1-A warrants for itself, its successors and
     assigns, that it will have at the time of delivery of the gas to GTN
     hereunder good title to such gas and that all gas delivered to GTN for
     transportation hereunder is eligible for the requested transportation in
     interstate commerce under applicable rules, regulations or orders of the
     FERC, or other agency having jurisdiction. Shipper will indemnify GTN and
     save it harmless from all suits, actions, damages, costs, losses, expenses
     (including reasonable attorney fees) costs connected with regulatory
     proceedings, arising from breach of this warranty.

12.  POSSESSION OF GAS AND RESPONSIBILITY

     GTN shall be deemed to be in control and possession of, and responsible
     for, all gas delivered from the time that such gas is received by it at the
     point of receipt to the time that it is delivered at the point of delivery.

13.  INDEMNIFICATION

     Shipper agrees to indemnify and hold harmless GTN, its officers, agents,
     employees and contractors against any liability, loss or damage whatsoever
     occurring in connection with or relating in any way to the executed
     Transportation Service Agreement, including costs and attorneys' fees,
     whether or not such liability, loss or damage results from any demand,
     claim, action, cause of action, or suit brought by Shipper or by any
     person, association or entity, public or private, that is not a party to
     the executed Transportation Service Agreement, where such liability, loss
     or damage is suffered by GTN, its officers, agents, employees or
     contractors as a direct or indirect result of any breach of the executed
     Transportation Service Agreement or sole or concurrent negligence or gross
     negligence or other tortious act(s) or comission(s) by Shipper, its
     officers, agents, employees or contractors.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 122
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

14.  ARBITRATION

     Any arbitration provided for or agreed to by Shipper and GTN shall be
     conducted in accordance with the following procedures and principles: Upon
     the written demand of either GTN or Shipper and within ten (10) days from
     the date of such demand, each entity shall appoint an arbitrator and the
     two arbitrators so appointed shall promptly thereafter appoint a third. If
     either GTN or Shipper shall fail to appoint an arbitrator within ten (10)
     days from the date of such demand, then the arbitrator shall be appointed
     by a Superior Court of the State of California in accordance with the
     California Code of Civil Procedure. If the two arbitrators shall fail
     within ten (10) days from their appointment to agree upon and appoint the
     third arbitrator, then upon the application of either GTN or Shipper such
     third arbitrator shall be appointed by a Superior Court of the State of
     California in accordance with the California Code of Civil Procedure.

     The arbitrators shall proceed immediately to hear and determine the matter
     in controversy. The award of the arbitrators, or a majority of them, shall
     be made within forty-five (45) days after the appointment of the third
     arbitrator, subject to any reasonable delay due to unforeseen
     circumstances. The award of the arbitrators shall be drawn up in writing
     and signed by the arbitrators, or a majority of them, and shall be final
     and binding on both GTN and Shipper, and GTN and Shipper shall abide by the
     award and perform the terms and conditions thereof. Unless otherwise
     determined by the arbitrators, the fees and expenses of the arbitrator
     named for each party shall be paid by that party and the fees and expenses
     of the third arbitrator shall be paid in equal proportion by both GTN and
     Shipper.

15.  GOVERNMENTAL REGULATIONS

     These Transportation General Terms and Conditions, the rate schedules to
     which they apply, and any executed Transportation Service Agreement are
     subject to valid laws, orders, rules and regulations of duly constituted
     authorities having jurisdiction.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 123
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

16.  MISCELLANEOUS PROVISION

     16.1 Waiver of Default: No waiver by either GTN or Shipper of any default
          by the other in the performance of any provisions of an executed
          Transportation Service Agreement shall operate as a waiver of any
          continuing or future default, whether of a like or different
          character.

     16.2 Assignability: An executed Transportation Service Agreement shall bind
          and inure to the respective successors and assignees of GTN and
          Shipper thereto, but no assignment shall release either party thereto
          from such party's obligations without the written consent of the other
          party, which consent shall not be unreasonably withheld; provided,
          however, nothing contained herein shall give Shipper the right to
          reassign or broker its right to ship the quantities of gas specified
          in the Transportation Service Agreement on GTN's system to others.
          Further, nothing contained herein shall prevent either party from
          pledging, mortgaging or assigning its rights as security for its
          indebtedness and either party may assign to the pledgee or mortgagee
          (or to a trustee for the holder of such indebtedness) any money due or
          to become due under any service agreement.

     16.3 Effect of Headings: The headings used throughout these Transportation
          General Terms and Conditions, the rate schedules to which they apply,
          and the executed Transportation Service Agreements are inserted for
          reference purposes only and are not to be considered or taken into
          account in construing the terms and provisions of any paragraph nor to
          be deemed in any way to qualify, modify or explain the effects of any
          such terms or provisions.

17.  TRANSPORTATION SERVICE AGREEMENT

     17.1 Form: Shipper shall enter into a contract with GTN utilizing GTN's
          appropriate standard form of Transportation Service Agreement.

     17.2 Term: The term of the Transportation Service Agreement shall be agreed
          upon between Shipper and GTN at the time of the execution thereof.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 124
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 125
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18   OPERATING PROVISIONS

     18.0 Requests For Service:

     (A)  A prospective shipper desiring service on GTN's system must fully
          complete the Service Request Form set out in GTN's EBB. Alternatively,
          a prospective shipper may request a hard-copy of the Service Request
          Form by contacting GTN's Service and Contract Coordinator at the
          following location:

              Gas Transmission Northwest Corporation
              Services and Contract Coordinator
              1400 SW Fifth Avenue, Suite 900
              Portland, OR 97201
              Phone: 503/833-4300, Option 2

     (B)  If Shipper requests service under Section 311(a), Shipper must provide
          a certification that the service qualifies under 18 C.F.R. Section
          284.102. To enable GTN to verify that the requested transportation
          service will qualify under 18 C.F.R. Section 284.102, the
          certification must provide facts showing that:

               (a)  the "On Behalf Of" party will have physical custody of and
                    transport the natural gas at some point; or

               (b)  the "On Behalf Of" party will hold title to the natural gas
                    at some point, which may occur prior to, during, or after
                    the time that the gas is transported by GTN, for a purpose
                    related to the "On Behalf Of" party's status and function as
                    an intrastate pipeline or its status and function as a local
                    distribution company; or

               (c)  the gas will be delivered to a customer that is either
                    located in the "On Behalf Of" party's service area, if the
                    "On Behalf Of" party is a local distribution company, or is
                    physically able to receive direct deliveries of gas from the
                    "On Behalf Of" party, if the "On Behalf Of" party is an
                    interstate pipeline, and that "On Behalf Of" party has
                    certified that it is on its behalf that GTN will be
                    providing the requested transportation service.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 126
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18   OPERATING PROVISIONS (Continued)

     18.0 Requests For Service (Continued)

     (C)  Submission of this Service Request Form will allow GTN to begin
          processing Shipper's Request For Service, but does not guarantee
          service will be available. GTN will not provide service until Shipper
          has executed a service contract. Shipper also shall be required to
          meet other provisions of this FERC Gas Tariff, including the credit
          requirements set out in Section 18.3 of this Tariff. Standard form
          service contracts for each service offered by GTN are set out in the
          Form of Service Agreement portion of this Tariff.

          Shipper shall not be entitled to receive transportation service under
          this FERC Gas Tariff, Third Revised Volume No. 1-A if Shipper is not
          current in its payments to GTN for any charge, rate or fee authorized
          by the Commission for transportation service; provided, however, if
          the amount not current pertains to a bona fide dispute, including but
          not limited to force majeure claims relating to this FERC Gas Tariff,
          Shipper shall be entitled to receive or continue to receive
          transportation service if Shipper posts a bond satisfactory to GTN to
          cover the payment due GTN.

18.1 Firm Service

          The provisions of this Paragraph 18.1 shall be applicable to firm
          transportation service under Rate Schedules FTS-1 and LFS-1 contained
          in this Third Revised Volume No. 1-A. Firm transportation service
          under this Third Revised Volume No. 1-A shall be provided when, and to
          the extent that, GTN determines that firm capacity is available on
          GTN's existing facilities. GTN shall not be required to provide firm
          transportation service in the event firm capacity is unavailable or to
          construct new facilities to provide firm service.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 127
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.1 Firm Service (Continued)

          For capacity that becomes available other than through the
          circumstances identified in Paragraphs 28 and 33, requests for firm
          capacity shall be accommodated in the following manner and subject to
          the following conditions and limitations:

          (a)  In order to be eligible for firm capacity, a party requesting
               service (requestor) must be deemed credit-worthy per Paragraph
               18.3 and submit a valid request in accordance with the provisions
               herein.

          (b)  Pre-Arranged Capacity: GTN may enter into a pre-arranged service
               agreement with any party for available unsubscribed capacity or
               capacity that will become available and is not subject to a right
               of first refusal; provided that GTN will post the terms of the
               pre-arranged transaction and other parties will have an
               opportunity to bid on the capacity. One year prior to the
               commencement date of a pre-arranged agreement, GTN will post a
               notice on its website that the pre-arranged capacity will be
               subject to the bidding process. GTN will commence open bidding no
               later than 3 months prior to the in-service date of the
               pre-arranged agreement. If another party submits a bid with a
               higher incremental economic value, the pre-arranged Shipper will
               have a one-time right to match the higher bid in order to retain
               the capacity. If the pre-arranged Shipper elects not to match a
               higher competing bid, the capacity will be awarded to the highest
               creditworthy bidder in accordance with Paragraph 18.1(e). If
               there is an open season ongoing for certain capacity, GTN will
               not enter into a pre-arranged deal for that capacity during the
               open season.

               GTN will not enter into pre-arranged service agreements with
               commencement dates more than three years, or thirty-six months,
               into the future. GTN will separately identify on its Internet
               website all capacity that is anticipated to become available
               within the next thirty-six months. GTN will not enter into any
               pre-arranged deals for capacity that has not previously been
               posted on its Internet website.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 128
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS

18.  OPERATING PROVISIONS (Continued)

     18.1 Firm Service (Continued)

          (c)  Available Capacity:

               GTN will post available capacity on its Internet website. A
               requestor that submits a valid request may submit a bid via the
               website for the available capacity subsequent to GTN's posting of
               such capacity on the website. The Bid Period will be a minimum of
               1 business day for capacity available for up to 1 month; a
               minimum of 3 business days for capacity available for greater
               than one month but less than one year; and a minimum of 5
               business days for capacity available for one year or more. All
               bids not withdrawn prior to the close of the Bidding Period shall
               be binding. At the end of the Bidding Period, GTN will evaluate
               the bids and determine the bid(s) having the greatest economic
               value as determined in Paragraph 18.1(e).

               If GTN determines that no bids satisfy the open season criteria,
               GTN will post the capacity on its website as available
               unsubscribed capacity. GTN will award such capacity on a
               first-come, first-served basis to shippers that offer the maximum
               recourse rate or an acceptable discounted or negotiated rate.

               In addition to posting all currently available capacity, GTN will
               separately identify on its Internet website all capacity that is
               anticipated to become available within the next thirty-six
               months.

          (d)  After the close of the Bidding Period, GTN may tender a Service
               Agreement for execution to the requestor(s) submitting the bid(s)
               having the greatest economic value for the capacity available,
               subject to the provisions of Paragraph 18.1(f).

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 129
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.1 Firm Service (Continued)

          (e)  Valuation of Bids

               Unless otherwise specified in its open season posting, the bid(s)
               with the greatest economic value will be the bid(s) with the
               highest net present value ("NPV") based on the reservation charge
               and any proposed usage charge revenues guaranteed by a minimum
               volume commitment or otherwise that requestor(s) would pay at the
               rates the requestor(s) has bid, over the term of service
               specified in the request. If the economic values of separate bids
               are equal, then service shall be offered to such requestors on a
               pro-rata basis. The NPV is the discounted cash flow of the bid
               according to the following formula, net of revenues lost or
               affected by the requests for service:

                                                      (1 + i)(n) -1
               Present Value per    =       P * R *   -------------
                                                      i (1 + i)(n)

               where: P = percent of the rate or charge that the Shipper is
                                     willing to pay.

                      R = Rate or charge calculated as: The applicable maximum
                          authorized reservation charge(s) per Dth in effect at
                          the time of the bid for service.

                      i = FERC's annual interest rate divided by 12.

                      n = number of periods for which the bidder wishes
                          to contract.

               The NPV formula will be affected by the term and rate requested.
               In the event GTN intends to entertain bids for service under
               index-based or other Negotiated Rate Formulae, the future value
               of which cannot be determined at the time of the bidding, GTN
               shall estimate the future revenues to be received under the
               Negotiated Rate Formula using currently available data.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 130
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.1 Firm Service (Continued)

          (e)  Valuation of Bids (Continued)

               The specific bid evaluation methodology to be used, including,
               where appropriate, the data to be used for evaluation of
               Negotiated Rate Formula bids, will be included as part of GTN's
               open season posting under Paragraph 18.1(c) with sufficient
               specificity to allow a prospective shipper to calculate the value
               of its bid and duplicate GTN's results.

               Irrespective of whether a bid(s) has the highest NPV of the bids
               received, GTN may reject bids for service that (i) may
               detrimentally impact the operational integrity of Transporter's
               system; (ii) do not satisfy all the terms of the specified
               posting; or (iii) contain terms and conditions other than those
               set forth in GTN's FERC Gas Tariff.

               If the NPV of any Negotiated Rate revenues would exceed the NPV
               of the revenue stream produced by paying the Maximum Rate over
               the same period of time, then the Shipper bidding the Negotiated
               Rate shall be considered to be paying the Maximum Rate for
               purposes of determining the bid with the greatest economic value.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 131
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.1 Firm Service (Continued)

          (f)  If GTN accepts the winning bid(s) and tenders a Service
               Agreement, requestor(s) shall complete and return the Service
               Agreement within thirty (30) days.

          (g)  Except as provided in Paragraph 28, GTN shall not be obligated to
               tender or execute a Service Agreement for service at any rate
               less than the Maximum Rate set forth in the Statement of
               Effective Rates and Charges applicable to the service requested.

          (h)  A Shipper receiving service under FTS-1 shall not lose its
               priority for purposes of Paragraph 19 by the renewal or extension
               of term of that service; provided, however, any renewal or
               extension must be pursuant to a rollover or evergreen provision
               of the Service Agreement. Shipper's preexisting priority shall
               not apply, however, to any increase in transportation quantity or
               new primary point of delivery.

     18.2 Interruptible Service

          The provisions of this Paragraph 18.2 shall be applicable to
          interruptible transportation service under Rate Schedule ITS-1
          contained in this Third Revised Volume No. 1-A.

          (a)  Interruptible transportation service under this Third Revised
               Volume No. 1-A shall be provided when, and to the extent that,
               capacity is available in GTN's existing facilities, which
               capacity is not subject to a prior claim under a pre-existing
               agreement pursuant to Rate Schedule FTS-1 or under another class
               of firm service.

          (b)  In the event where natural gas tendered by Shipper to GTN at the
               receipt point(s) for transportation, or delivered by GTN to
               Shipper (or for Shipper's account) at the delivery point(s), is
               commingled with other natural gas at the time of measurement, the
               determination of deliveries applicable to Shipper shall be made
               in accordance with operating arrangements satisfactory to
               Shipper, GTN and any third party transporting to or from GTN's
               system.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 132
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.2 Interruptible Service (Continued)

          (c)  GTN shall process requests for interruptible transportation
               service on a non-discriminatory basis. Available interruptible
               capacity shall be allocated by GTN first to the Shipper(s) paying
               the highest rate, followed by a pro-rata tie breaker, as provided
               for in Paragraph 19 of these General Terms and Conditions.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 133
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.3 Credit-worthiness

          (A)  Credit-worthiness for Firm Transportation Service

               (1)  GTN shall not be required to perform or to continue
                    transportation service under this FERC Gas Tariff, Third
                    Revised Volume 1-A on behalf of any Shipper who is or has
                    become insolvent or who, after GTN's request, fails within a
                    reasonable period to establish or confirm credit-worthiness.
                    Shippers shall provide, initially and on a continuing basis,
                    financial statements, evidence of debt and/or credit
                    ratings, and other such information as is reasonably
                    requested by GTN to establish or confirm Shipper's
                    qualification for service. Credit limits will be established
                    based on the level of requested service and Shipper
                    credit-worthiness as established by the following:

                    (a)  Credit-worthiness must be evidenced by at least a long
                         term bond (or other senior debt) rating of BBB or an
                         equivalent rating.

                         Such rating may be obtained in one of three ways:

                         (i)  The rating will be determined by Standard and
                              Poors or another recognized U.S. or Canadian debt
                              rating service;

                         (ii) If Shipper's debt is not rated by a recognized
                              debt rating service, an equivalent rating as
                              determined by GTN, based on the financial rating
                              methodology, criteria and ratios for the industry
                              of the Shipper as published by the above rating
                              agencies from time to time. In general, such
                              equivalent rating will be based on the audited
                              financial statements for the Shipper's two most
                              recent fiscal years, all interim reports, and any
                              other relevant information;

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 134
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.  OPERATING PROVISIONS (Continued)

     18.3   (A)   Credit-worthiness for Firm Transportation Service (Continued)

                              (iii) Shipper may, at its own expense, obtain a
                                    private rating from a recognized debt rating
                                    service, or request that an independent
                                    accountant or financial advisor, mutually
                                    acceptable to GTN and the Shipper, prepare
                                    an equivalent evaluation based on the
                                    financial rating methodology, criteria, and
                                    ratios for the industry of the Shipper as
                                    published by the above rating agencies from
                                    or

                        (b)   Approval by GTN's lenders; or

                        (c)   If Shipper is requesting credit to bid on a parcel
                              that is for one year (365 days) or less of service
                              through GTN's Capacity Release Program contained
                              in Paragraph 28, and this option is selected by
                              the Releasing Shipper, Shipper may demonstrate
                              credit-worthiness by providing two years of
                              audited financial statements for itself, or for
                              its parent company if it is a subsidiary which is
                              consolidated with its parent company and does not
                              issue stand-alone financial statements,
                              demonstrating adequate financial strength to
                              justify the amount of credit to be extended. GTN
                              shall apply consistent evaluation practices to
                              determine credit-worthiness.

                  (2)   If Shipper does not establish or maintain
                        credit-worthiness as described above, Shipper has the
                        option of receiving transportation service under this
                        FERC Gas Tariff by providing to GTN one of the following
                        alternatives:

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 135
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.         OPERATING PROVISIONS (Continued)

      18.3  (A)   Credit-worthiness for Firm Transportation Service (Continued)

                        (a)   A guarantee of Shipper's financial performance in
                              a form satisfactory to GTN and for the term of the
                              Gas Transportation Agreement from a corporate
                              affiliate of the Shipper or a third party either
                              of which meets the credit-worthiness standard
                              discussed above.

                        (b)   Other security acceptable to GTN's lenders.

      18.3  (B)   Credit-worthiness for Interruptible Transportation Service

                  (1)   GTN shall not be required to perform or to continue
                        interruptible transportation service under this FERC Gas
                        Tariff, Third Revised Volume No. 1-A on behalf of any
                        Shipper who is or has become insolvent or who, at GTN's
                        request, fails within a reasonable period to demonstrate
                        credit-worthiness. Shipper's credit-worthiness shall be
                        determined by providing proof of least two of the items
                        listed below:

                        (a)   A long-term bond or commercial paper rating from
                              Standard and Poors or Moody's equivalent to a "Ba"
                              or better, or a commercial paper rating from
                              Standard and Poors or Moody's equivalent to
                              Prime-3 or better.

                        (b)   Audited financial statements for itself, or for
                              its parent company if it is a subsidiary which is
                              consolidated with its parent company and does not
                              issue stand-alone financial statements, for the
                              two preceding years showing good financial
                              strength.

                        (c)   An estimated financial strength rating by Dun and
                              Bradstreet sufficient to cover the credit to be
                              extended and a corresponding Dun and Bradstreet
                              composite credit appraisal of "fair" or better.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 136
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.         OPERATING PROVISIONS (Continued)

      18.3  (B)   Credit-worthiness for Interruptible Transportation Service
                  (Continued)

                  (d)   A demonstration by the Shipper that the Company has
                        sufficient financial capacity or backing to warrant an
                        extension of credit. This demonstration could include
                        proof of banking relationships sufficient to cover the
                        service agreement, or a detailed listing of credit
                        references within the industry, exhibiting a good credit
                        history.

            (2)   If Shipper does not demonstrate credit-worthiness, Shipper has
                  the option of receiving interruptible transportation service
                  under this FERC Gas Tariff, Third Revised Volume No. 1-A if
                  Shipper provides GTN a letter of credit in an amount equal to
                  the cost of performing the maximum level of service requested
                  for a three (3) month period of time. The letter of credit
                  must be from a credit worthy financial institution and be in
                  place before the Transportation Service Agreement can be
                  signed. The Shipper also has the option of receiving
                  transportation service if Shipper prepays for transportation
                  services on a month-to-month basis pursuant to the following
                  terms:

                  (a)   For a calendar month in which transportation service is
                        desired (delivery month), Shipper must notify GTN no
                        later than eight (8) business days prior to the
                        commencement of delivery month (estimation date) of its
                        estimation of the maximum, cumulative gas deliveries
                        (monthly estimation) desired for the delivery month.
                        (For Shipper's initial monthly estimation, the delivery
                        month, or remaining portion thereof, shall commence
                        eight (8) days after the estimation date.) Notice of
                        monthly estimation may be telephonic or written;
                        telephonic notices must be confirmed in writing and
                        received by GTN within five (5) business days. GTN will
                        advise Shipper within forty-eight (48) hours of the
                        estimation date of the exact dollar amount of the
                        prepayment. Shipper shall not deliver or receive gas in
                        excess of the monthly estimation during delivery
                        month.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 137
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.         OPERATING PROVISIONS (Continued)

      18.3  (B)   Credit-Worthiness for Interruptible Transportation Service
                  (Continued)

                        (b)   No later than three (3) business days (settlement
                              date) prior to commencement of delivery month,
                              Shipper shall pay to GTN and GTN shall have
                              received from Shipper lawful money of the United
                              States in an amount equal to the prepayment amount
                              provided to Shipper by GTN described above.

                        (c)   On or before the twentieth (20th) day following
                              delivery month, GTN shall provide statement to
                              Shipper detailing the transportation service
                              provided during the delivery month. The statement
                              will reconcile the amount prepaid in accordance
                              with the monthly estimation, credit to Shipper, if
                              applicable. Any such credit will be deducted from
                              the prepayment for the following month. Should the
                              Shipper elect not to receive transportation
                              services for the following month, Shipper shall so
                              notify GTN in writing; GTN will issue a check to
                              the Shipper within seven (7) business days
                              following receipt by GTN of such notice.

      18.3  (C)   Credit-worthiness for Firm and Interruptible Transportation
                  Service

                  For purposes of this FERC Gas Tariff, Third Revised Volume No.
                  1-A the insolvency of a Shipper shall be evidenced by the
                  filing by such Shipper or any parent entity thereof
                  (hereinafter collectively referred in this paragraph to as
                  "the Shipper") of a voluntary petition in bankruptcy or the
                  entry of a decree or order by a court having jurisdiction in
                  the premises adjudging the Shipper as bankrupt or insolvent,
                  or approving as properly filed a petition seeking
                  reorganization, arrangement, adjustment or composition of or
                  in respect of the Shipper under the Federal Bankruptcy Act or
                  any Act or any other applicable federal or state law, or
                  appointing a receiver, liquidator, assignee, trustee,
                  sequestrator (or other similar official) of the Shipper

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 138
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.         OPERATING PROVISIONS (Continued)

      18.3  (C)   Credit-worthiness for Firm and Interruptible Transportation
                  Service (Continued)

                  or composition of or in respect of the Shipper under the
                  Federal Bankruptcy Act or any Act or any other applicable
                  federal or state law, or appointing a receiver, liquidator,
                  assignee, trustee, sequestrator (or other similar official) of
                  the Shipper or of any substantial part of its property, or the
                  ordering of the winding-up liquidation of its affairs, with
                  said order or decree continuing unstayed and in effect for a
                  period of sixty (60) consecutive days.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 139
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

18.   OPERATING PROVISIONS (Continued)

      18.4  Upon request of GTN, Shipper shall from time to time submit
            estimates of daily, monthly and annual quantities of gas to be
            transported, including peak day requirements.

      18.5  GTN shall not be obligated to install additional facilities, other
            than those specified in Paragraph 4.1 herein, that are required to
            provide service under this FERC Gas Tariff, Third Revised Volume No.
            1-A; provided, however, GTN may install or Shipper may pay all of
            the expenses incurred for installing additional facilities on a
            nondiscriminatory basis and under terms that are mutually agreeable.
            In the event GTN incurs the cost of installing additional facilities
            on behalf of a Shipper, Shipper shall pay, in addition to the
            rate(s) stated in the applicable rate schedule, the prorated (based
            on Transportation Contract Demand) cost of service attributable to
            any such additional facilities until such time as a different
            allocation procedure is specified by Commission order.

      18.6  Reserved

      18.7  Reserved

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                             Sheet Nos. 140 - 141
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 142
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING, AND NOMINATIONS

      19.1  Priority of Firm Service

            Firm service shall have the highest priority on GTN's System. From
            time to time, GTN may not have sufficient capacity to accommodate
            all nominations for firm service through a given segment of its
            pipeline, Receipt Point, or Delivery Point. In that event, GTN shall
            schedule firm service using the following priorities.

      19.1A FIRM SCHEDULING PRIORITIES THROUGH PIPELINE SEGMENTS.

            GTN shall first schedule nominations for service within a shipper's
            Primary Path. In the event GTN has insufficient capacity to schedule
            all nominations for service within Shippers' Primary Paths, GTN
            shall schedule service to Shippers nominating for service along
            Primary Paths on a pro rata basis in accordance with each shipper's
            MDQ.

            GTN will next schedule nominations for service within a shipper's
            Reverse Path. In the event GTN has insufficient capacity to schedule
            all nominations for service within Shippers' Reverse Paths, GTN
            shall schedule service to Shippers nominating for service along
            Reverse Paths on a pro rata basis in accordance with each shipper's
            MDQ.

      19.1B FIRM SCHEDULING PRIORITIES THROUGH RECEIPT POINTS.

            First, GTN shall schedule service to those shippers for whom the
            constrained receipt point is a Primary Receipt Point, up to each
            shipper's MDQ at that point (plus an allowance for fuel). In the
            event full service cannot be provided to shippers holding Primary
            Receipt Point rights, service will be scheduled on a pro rata basis
            based on each shipper's primary MDQ at that point.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 143
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.1B FIRM SCHEDULING PRIORITIES THROUGH RECEIPT POINTS. (Continued)

      GTN shall then schedule service to those shippers for whom the constrained
      receipt point is a Secondary Receipt Point. In the event full service
      cannot be provided, service will be scheduled on a pro rata basis based on
      each shipper's MDQ.

      19.1C FIRM SCHEDULING PRIORITIES THROUGH DELIVERY POINTS.

      GTN shall first schedule service to those shippers for whom the
      constrained Delivery point is a Primary Delivery Point, up to each
      shipper's MDQ at that point. In the event full service cannot be provided
      to shippers holding Primary Delivery Point rights, service will be
      scheduled on a pro rata basis based on each shipper's MDQ at that point.

      GTN shall then schedule service to those shippers for whom the constrained
      Delivery point is a Secondary Delivery Point. In the event full service
      cannot be provided, service will be scheduled on a pro rata basis based on
      each shipper's MDQ.

      19.1D SCHEDULING PRIORITY FOR CAPACITY RELEASE

      The Scheduling Priorities set out in this Section 19.1 also apply for
      capacity released under GTN's capacity release program, and are subject to
      the terms and conditions as specified in an executed firm service
      agreement between GTN and Shipper. All service under the capacity release
      program shall be considered firm for purposes of priority of service.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 144
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.2  PRIORITY OF INTERRUPTIBLE SERVICE

            Interruptible transportation service under this FERC Gas Tariff,
            Third Revised Volume No. 1-A, shall be provided when and to the
            extent that capacity is available in GTN's existing facilities,
            subject to the priorities of service set forth herein. GTN will
            provide interruptible transportation service first to the Shipper(s)
            paying the highest rate. (Shippers paying a Negotiated Rate that
            exceeds the maximum applicable tariff rate shall be considered to be
            paying the maximum applicable tariff rate.) For the purposes of
            Section 19.2, the term "highest rate" shall be determined by
            multiplying the distance in pipeline miles (from the receipt point
            to the delivery point) by the mileage component(s) of the ITS-1 rate
            (including applicable surcharges), and then adding the non-mileage
            component(s) of the ITS-1 rate (including applicable surcharges). In
            the event of a tie, GTN shall allocate interruptible capacity among
            interruptible Shippers on a pro-rata basis based on confirmable
            nominations.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 145
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.3  Priority of Authorized Overrun Service

            Authorized overrun service shall have a priority lower than firm or
            interruptible as defined above. Priority within the overrun class
            shall be determined using a first-come, first-serve procedure.

      19.4  Nominations

            19.4(a) Information to be Provided with Nomination

                  A Shipper may nominate for transportation service on GTN
                  electronically in accordance with Section 34 of the General
                  Terms and Conditions of this Tariff. In accordance with NAESB
                  Standard 1.3.5, Version 1.5, all nominations should include
                  Shipper-defined begin dates and end dates. All nominations
                  excluding intraday nominations should have roll-over options.
                  Specifically, Shippers should have the ability to nominate for
                  several days, months, or years, provided the nomination begin
                  and end dates are within the term of Shipper's contract.

                  All nominations shall include, at a minimum:

                  a daily quantity of gas to be transported (expressed in
                  Dekatherms);

                  previously approved and valid receipt and delivery points; and

                  shipper defined begin dates and end dates.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 146
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(a) Information to be Provided with Nomination (Continued)

                  Shipper shall provide as a component of its nomination such
                  business conditional data sets as may be required by GTN to
                  enable it to identify, confirm, and schedule the nomination.
                  Shipper shall also prioritize nominated receipts and
                  deliveries when there is more than one supplier and more than
                  one Shipper customer, respectively. Shipper designated
                  priorities will be used to allocate gas when upstream and
                  downstream nominations vary from GTN's Shipper nominations.

                  Shipper may nominate for any period of days, provided the
                  nomination begin and end dates are within the term of the
                  Shipper's Transportation Service Agreement or exhibit. Such
                  nominations shall be deemed "Standing Nominations." All types
                  of Nominations must be clearly and separately identified so
                  that priorities of service can be distinguished. As required
                  by NAESB Standard 1.3.19, Version 1.5, overrun quantities
                  should be requested on a separate transaction.

                  The receipt of the nomination is notice that all necessary
                  regulatory approvals have been received and that valid
                  upstream and downstream transportation and other contractual
                  arrangements are in place.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 147
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(b) Nomination Cycles

                  In accordance with NAESB Standard 1.3.2, Version 1.5, GTN will
                  utilize the following standard nomination cycles:

                  (i) THE TIMELY NOMINATION CYCLE:

                  11:30 a.m. (CCT) (9:30 a.m. PCT) nominations leave control of
                  the nominating party;

                  11:45 a.m. (CCT) (9:45 a.m. PCT) receipt of nominations by GTN
                  (including from Title Transfer Tracking Service Providers
                  (TTTSPs));

                  12:00 noon (CCT) (2:00 p.m. PCT) GTN sends Quick Response;

                  3:30 p.m. (CCT) (1:30 p.m. PCT) receipt of completed
                  confirmations by GTN from upstream and downstream connected
                  parties;

                  4:30 p.m. (CCT) (2:30 p.m. PCT) receipt of scheduled
                  quantities by shipper and point operator (central clock time
                  on the day prior to flow).

                  (ii) THE EVENING NOMINATION CYCLE:

                  6:00 p.m. (CCT) (4:00 p.m. PCT) nominations leave control of
                  the nominating party;

                  6:15 p.m. (CCT) (4:15 p.m. PCT) receipt of nominations by GTN
                  (including from TTTSPs);

                  6:30 p.m. (CCT) (4:30 p.m. PCT) GTN sends Quick Response;

                  9:00 p.m. (CCT) (7:00 p.m. PCT) receipt of completed
                  confirmations by GTN from upstream and downstream connected
                  parties;

                  10:00 p.m. (CCT) (8:00 p.m. PCT) GTN provides scheduled
                  quantities to affected shippers and point operators, and
                  provides scheduled quantities and notice to bumped parties.
                  Advance notice to bumped parties shall be provided by
                  telephone, facsimile, or electronic mail, at the shipper's
                  option.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 148
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4      Nominations (Continued)

            19.4(b) Nomination Cycles (continued)

            Scheduled quantities resulting from an Evening Nomination will be
            effective at 9:00 a.m. (CCT) (7:00 a.m. PCT) on gas day.

      (iii) THE INTRADAY 1 NOMINATION CYCLE:

            10:00 a.m. (CCT) (8:00 a.m. PCT) nominations leave control of the
            nominating party;

            10:15 a.m. (CCT) (8:15 a.m. PCT) receipt of nominations by GTN
            (including from TTTSPs);

            10:30 a.m. (CCT) (8:30 a.m. PCT) GTN sends Quick Response;

            1:00 p.m. (CCT) (11:00 a.m. PCT) receipt of completed confirmations
            by GTN from upstream and downstream connected parties;

            2:00 p.m. (CCT) (12:00 noon PCT) GTN provides scheduled quantities
            to affected shippers and point operators, and provides scheduled
            quantities and notice to bumped parties. Advance notice to bumped
            parties shall be provided by telephone, facsimile, or electronic
            mail, at the shipper's option.

            Scheduled quantities resulting from Intraday 1 Nominations should be
            effective at 5:00 p.m. (CCT) (3:00 P.M. PCT) on gas day.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 149
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(b) Nomination Cycles

      (iv)  THE INTRADAY 2 NOMINATION CYCLE:

            5:00 p.m. (CCT) (3:00 p.m. PCT) nominations leave control of the
            nominating party;

            5:15 p.m. (CCT) (3:15 p.m. PCT) receipt of nominations by GTN
            (including from TTTSPs);

            5:30 p.m. (CCT) (3:30 p.m. PCT) GTN sends Quick Response;

            8:00 p.m. (CCT) (6:00 p.m. PCT) receipt of completed confirmations
            by GTN from upstream and downstream connected parties;

            9:00 p.m. (CCT) (7:00 p.m. PCT) GTN provides scheduled quantities to
            affected shippers and point operators.

            Scheduled quantities resulting from Intraday 2 Nominations should be
            effective at 9:00 p.m. (CCT) (7:00 p.m. PCT) on gas day.

            Firm intraday nominations during the Intraday 2 Nomination Cycle may
            not bump nominated and scheduled interruptible volumes.

      (v)   For purposes of GISB Standards 1.3.2 ii, iii, and iv (reflected in
            Paragraphs 19.4(b)(ii) through 19.4(b)(iv) above), "provide" shall
            mean, for transmittals pursuant to GISB Standards 1.4.x, receipt at
            the designated site, and for purposes of other forms of transmittal,
            it shall mean send or post.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 150
Third Revised Volume No. 1-A

                                   [TIME LINE]

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 151
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(b)     Scheduling Timelines (Continued)

                        Transporter shall, at the end of each business day, make
                        available to each Shipper information containing
                        scheduled quantities including scheduled intraday
                        nominations and any other scheduling changes.

                        GTN shall have the discretion to accept nominations at
                        such later times as operating conditions permit and
                        without detrimental impact to other shippers and upon
                        confirmation that corresponding upstream and downstream
                        arrangements in a manner satisfactory to GTN have been
                        made. In the event later nominations are accepted, GTN
                        will schedule those nominations after the nominations
                        received before the nominations deadline, which is in
                        accordance with NAESB Standard 1.3.6, Version 1.5, that
                        states nominations received after nomination deadline
                        should be scheduled after the nominations received
                        before the nomination deadline.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 152
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(c)     Changes to Nominations

                        (1)   Changes to Standing Nominations

                              In accordance with NAESB Standard 1.3.7, Version
                              1.5, all nominations should be considered original
                              nominations and should be replaced to be changed.
                              When a nomination for a date range is received,
                              each day within that range is considered an
                              original nomination. When a subsequent nomination
                              is received for one or more days within that
                              range, the previous nomination is superseded by
                              the subsequent nomination only to the extent of
                              the days specified. The days of the previous
                              nomination outside the range of the subsequent
                              nomination are unaffected. Nominations have a
                              prospective effect only. A nomination for a period
                              within the start and end dates of a Standing
                              Nomination replaces the Standing Nomination for
                              the specific gas day(s) only and does not replace
                              the remainder of the Standing Nomination.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 153
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(c) Changes to Nominations (Continued)

                    Such nominations must be received by GTN's Transportation
                    Department in accordance with the scheduling timelines set
                    out in Section 19.4(b).

                    In the event GTN does not receive information of upstream or
                    downstream adjustments, GTN shall use the lesser of the new
                    nomination or the previous nomination.

                    (2)   Intraday Nominations

                          In accordance with NAESB Standard 1.3.8, Version 1.5,
                          all transportation service providers should allow for
                          intraday nominations. Requests to amend previously
                          scheduled nominations may be accepted during the gas
                          day, subject to operational conditions and, further
                          that corresponding upstream and downstream adjustments
                          in a manner satisfactory to GTN can be confirmed. In
                          accordance with NAESB Standard 1.3.11, Version 1.5,
                          such intraday Nominations can be used to request
                          increases or decreases in total flow, changes to
                          receipt points, or changes to delivery points of
                          scheduled gas. A request to increase a nomination for
                          firm transportation up to the MDQ specified in the
                          Service Agreement will be accommodated to the extent
                          operating conditions permit. Firm intraday nominations
                          other than during the Intraday 2 Nomination Cycle
                          shall have priority over nominated and scheduled
                          interruptible volumes. A request to increase a
                          nomination for interruptible transportation shall be
                          permitted only to the extent that capacity is
                          available and that no displacement of other
                          interruptible transportation occurs. Such changes will
                          become effective only when system operating
                          conditions, as determined by GTN, permit changes to
                          occur.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 154
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(c)     Changes to Nominations (Continued)

                        Intraday Nominations do not have roll-over options and
                        will replace the Standing Nomination only for the
                        duration of the Gas Day. Quantities for Intraday
                        Nominations will be expressed in Dekatherms, and
                        represent the total quantities to be delivered prior to
                        the end of the effective Gas Day.

                        (3)   In accordance with NAESB Standard 1.3.9, Version
                              1.5, all nominations, including Intraday
                              Nominations, should be based on a daily quantity;
                              thus, an Intraday Nominator need not submit an
                              hourly nomination. Intraday nominations should
                              include an effective date and time. The
                              interconnected parties should agree on the hourly
                              flows of the Intraday Nomination, if not otherwise
                              addressed in transporter's contract or tariff.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 155
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.4  Nominations (Continued)

            19.4(d)     Information Reliability

                        GTN shall be allowed to rely conclusively on the
                        information submitted as part of the nomination in
                        confirming the nomination for scheduling and allocation.
                        Shipper must provide electronically to GTN Shipper's
                        current designated contact, after hours and emergency
                        telephone numbers. Such information must be updated as
                        often as changes to such information occurs. GTN may
                        rely solely upon the information provided by Shipper and
                        will not be liable to Shipper if Shipper's contact
                        information is outdated and communication attempts with
                        such Shipper are unsuccessful.

            19.4(e)     Uniform Hourly Rates

                        Scheduled quantities will be received and delivered at a
                        uniform hourly rate of confirmed quantity divided by 24,
                        unless as determined by GTN, variance from the hourly
                        rate will not be detrimental to the operation of the
                        pipeline or adversely affect other GTN Shippers.

            19.4(f)     North American Energy Standards Board Standards:

                        Nominations for service on GTN shall be further governed
                        by the following standards adopted by the North American
                        Energy Standards Board. Unless otherwise specified, all
                        standards are Version No. 1.5:

                        1.3.13; 1.3.14; 1.3.16; 1.3.22; and 1.3.23.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 156
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

19.   PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued)

      19.5  Priority of Parking and Authorized Imbalance Service

            Parking and Authorized Imbalance Service shall have the lowest
            priority on GTN's system. All other transportation service,
            including rectification of imbalances, have superior priority to
            these services.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                             Sheet Nos. 157 - 158
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 159
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

20.   CURTAILMENT

      GTN shall have the right to curtail, interrupt, or discontinue
      Transportation Service on any portion of its system at any time for
      reasons of Force Majeure or when capacity, supply, or operating conditions
      so require or it is necessary or desirable to make modifications, repairs,
      or operating changes to its system. GTN shall provide notice of such
      occurrences as is reasonable under the circumstances.

      Capacity may become constrained at individual receipt points, delivery
      points or on segments of the pipeline. GTN shall exercise this curtailment
      provision only at the point(s) or segment(s) of the pipeline affected by
      the constraint. When capacity is constrained or otherwise insufficient to
      serve all the transportation requirements which are scheduled to receive
      service, GTN shall curtail Authorized Imbalance Service; followed by
      Interruptible Service, and finally Firm service.

      Curtailment of Authorized Imbalance Service, if necessary, shall be
      performed in the opposite order of scheduling as set forth in Section 19.3
      of this Tariff.

      Curtailment of Interruptible Service, if necessary, will be performed in
      the opposite order of scheduling set forth in Section 19.2 of this Tariff

      Curtailment of firm service if necessary, will be performed pro rata based
      on the MDQ across the contracts scheduled to use the capacity at the
      applicable receipt points, delivery point(s)or mainline segment(s) of
      pipeline.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 160
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

21.   BALANCING

      Balancing of thermally equivalent quantities of gas received and delivered
      by GTN shall be achieved as nearly as feasible on a daily basis, with any
      cumulative imbalance accounted for on a monthly basis. Correction of
      imbalances shall be the responsibility of the Shipper whether or not
      notified by GTN at the time of incurrence of the imbalance. Correction of
      imbalances shall be scheduled with GTN using the nomination process as
      soon as an imbalance is known to exist based on the best available current
      data. Nominations to correct imbalances shall have the lowest priority for
      scheduling purposes and shall be subject to the availability of capacity
      and other operational constraints for imbalance correction. If on any day
      capacity is insufficient to schedule all imbalance nominations, all such
      nominations shall be prorated accordingly. To maintain the operational
      integrity of its system, GTN shall have the right to balance any Shipper's
      account as conditions may warrant.

      Imbalances shall exist as defined below and be subject to the applicable
      charges and penalties if not corrected.

      a)    Actual delivered quantity exceeds MDQ

            An imbalance shall exist if the actual delivered quantity on any day
            exceeds the MDQ and the delivered quantity in excess of the MDQ has
            not been authorized by GTN (authorized Overrun).

            Penalty: A Shipper shall be assessed $5/Dth for the quantity that is
            greater than 10% of the MDQ or 1000 Dth, whichever is greater.

            In addition, the quantity delivered in excess of the MDQ shall be
            charged the Authorized Overrun charge as provided in the applicable
            rate schedule of Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 161
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

21.   BALANCING (Continued)

      (b)   Actual delivered quantity exceeds receipt quantity

            A net positive imbalance shall exist if the difference between the
            delivered quantity and the quantity received, taking into account
            the reduction in quantity for compressor fuel use, yields a positive
            result. Commencing upon notification by GTN of the existence of the
            imbalance, Shipper shall have 3 days to correct the imbalance.

            Penalty: If, at the end of the 3 day period the difference between
            the actual delivered quantity and the receipt quantity is in excess
            of 10% of the delivered quantity or 1000 Dth, whichever is greater,
            the Shipper shall be assessed a charge of $5/Dth applied to the
            excess quantities. If the imbalance is not corrected within 45 days
            of GTN's notice of an imbalance, the Shipper shall be assessed an
            additional charge of $5/Dth, applied to the net imbalance remaining
            at the end of the 45 day balancing period.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 162
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

21.   BALANCING (Continued)

      (c)   Actual quantity received exceeds delivered quantity

            A net negative imbalance shall exist if the difference between the
            delivered quantity and the quantity received taking into account the
            reduction in quantity for compressor fuel use, yields a negative
            result. Commencing upon notification by GTN of the existence of the
            imbalance, Shipper shall have 3 days to correct the imbalance.

            Penalty: If, at the end of the 3 day period the difference between
            the actual quantity received and the delivered quantity is in excess
            of 10% of the delivered quantity or 1000 Dth, whichever is greater,
            the Shipper shall be assessed a penalty of $2/Dth applied to the
            excess quantity. If the imbalance is not corrected within 45 days of
            GTN's notice of an imbalance, GTN shall be able to retain the
            remaining imbalance quantity without compensation to the Shipper and
            free and clear of any adverse claim.

      (d)   Scheduled delivery quantity exceeds actual delivered quantity

            An imbalance shall exist when the quantity scheduled (nominated and
            confirmed) for delivery exceeds the actual delivered quantity.

            Penalty: When the difference between the scheduled delivery quantity
            and actual delivered quantity is in excess of 10% of the actual
            deliveries, or 1000 Dth, whichever is greater, the Shipper shall be
            assessed the maximum applicable interruptible transportation rate
            applied to the excess quantities.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 163
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

21.   BALANCING (Continued)

      (e)   Actual delivered quantity exceeds scheduled delivery quantity

            An imbalance shall exist when the quantity delivered exceeds the
            quantity scheduled (nominated and confirmed).

            Penalty: When the difference between the actual delivered quantity
            and the scheduled delivery quantity is in excess of 10% of the
            scheduled quantity or 1000 Dth whichever is greater, the Shipper
            shall be assessed a charge of $5/Dth applied to the excess quantity.

            Imbalance determinations as described above will be performed on a
            daily basis and each daily occurrence will constitute a separate
            incident. It is recognized and understood that more than one penalty
            provision may apply to each imbalance incident.

            In the event that any penalty would otherwise be applicable under
            these provisions as a direct consequence of any action or failure to
            take action by GTN or the failure of any facility under GTN's
            control, or an event of force majeure as defined in these
            Transportation General Terms and Conditions, said penalty shall not
            apply.

            Interruptible Shippers will be notified whether penalties will apply
            on the day their volumes are reduced. GTN shall waive non-critical
            penalties for bumped shippers on the day of the bump. Waiver of
            non-critical penalties shall not relieve the shipper from the
            obligation to take corrective action to eliminate ongoing
            imbalances.

            The payment of a penalty in dollars pursuant to Paragraph 21 shall
            under no circumstances be considered as giving any Shipper the right
            to deliver or take overrun quantities.

            Upon termination of a Service Agreement, Shipper shall have 60 days
            to correct any remaining imbalances. After his period has elapsed,
            GTN shall have the right to retain any negative imbalance quantity
            without compensation to the Shipper and shall assess a charge of
            $5/Dth for any positive imbalance quantity as applicable.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 164
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 165
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

21.   BALANCING (Continued)

(f)   Imbalance Netting: A Shipper may net imbalances between its service
      agreements, provided that GTN will be reimbursed for any transportation
      and fuel necessary to effectuate such netting. Resolution of imbalances by
      netting the Shipper's service agreements shall be scheduled with GTN using
      the nomination process.

(g)   Imbalance Trading:

      (1)   A Shipper, or its agent, may trade imbalances with other Shippers,
            their agents or other third-party firms that may conduct imbalance
            trading for Shippers, provided that GTN will be reimbursed for any
            transportation and fuel necessary to effectuate such trading.
            Resolution of imbalances by trading imbalances between Shippers
            shall be scheduled with GTN using the nomination process.

      (2)   Any trading of imbalances must result in each Shipper's imbalance
            decreasing.

      (3)   GTN shall process all imbalance trades at no additional
            administrative charge.

(h)   Posting Imbalance Trades:

      (1)   GTN shall provide free of charge an "Imbalance Trading" location on
            its Internet website to allow posting of imbalances to facilitate
            trading.

      (2)   GTN shall post a Shipper's imbalance if the Shipper provides written
            authorization to GTN authorizing it to post such imbalance
            information on the "Imbalance Trading" section of its Internet
            website.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                             Sheet Nos. 166 - 169
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 170
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

22.   ANNUAL CHARGE ADJUSTMENT (ACA) PROVISION

      22.1  Purpose: GTN shall recover from Shippers the annual charge assessed
            to GTN by the Federal Energy Regulatory Commission for budgetary
            expenses pursuant to Section 154.38(d)(6) of the Commission's
            regulations and Order No. 472 issued May 29, 1987. GTN shall recover
            this charge by means of an Annual Charge Adjustment (ACA); a per
            unit rate equivalent to the unit rate assessed against GTN by the
            Commission shall be included in GTN's transportation rates. (During
            the period that this ACA provision is in effect, GTN shall not
            recover in a Natural Gas Act Section 4 rate case annual charges
            recorded in FERC Account No. 928 assessed to GTN by the Commission
            pursuant to Order No. 472.)

      22.2  Filing Procedure: The notice period and proposed effective date of
            filings pursuant to this paragraph shall be as permitted under
            Section 4 of the Natural Gas Act; provided, however, that any such
            filing shall not become effective unless they become effective
            without suspension or refund obligation.

      22.3  ACA Unit Rate Adjustment: GTN's ACA unit rate shall be the unit rate
            used by the Commission to determine the annual charge assessment to
            GTN, and shall be reflected in the Statement of Effective Rates and
            Charges of this FERC Gas Tariff, Third Revised Volume No. 1-A.

      22.4  Affected Rate Schedules: The ACA provision shall apply to all rate
            schedules contained in GTN's FERC Gas Tariff, Third Revised Volume
            No. 1-A.

23.   SHARED OPERATING PERSONNEL AND FACILITIES

            GTN does not share any operating personnel or facilities with its
            Marketing Affiliates. To the extent PG&E elects service under Rate
            Schedule USS-1, GTN employees involved with the implementation of
            USS-1 service will operate independently from GTN's pipeline
            operating employees.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 171
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

24.   COMPLAINT PROCEDURES

      24.1  Any Shipper or potential Shipper may register a complaint regarding
            requested or provided transportation service. The complaint may be
            communicated to GTN primarily by use of GTN's Electronic Bulletin
            Board (EBB) and secondarily either orally, and/or in writing. Oral
            complaints should be made to GTN's Manager of Gas Transportation and
            Services, telephone (503) 833-4300. Written complaints should be
            sent via registered or certified mail, facsimile (FAX No. (503)
            833-4395), or hand delivered to:

            Gas Transmission Northwest Corporation
            1400 SW Fifth Avenue, Suite 900
            Portland, OR 97201
            Attention: Manager of Gas Transportation and Services

            Oral, written and EBB-submitted complaints must contain the
            following minimum information:

            -     Shipper or potential Shipper's name, address, and FAX and
                  telephone numbers;

            -     Shipper or potential Shipper's contact representative;

            -     A clear, concise statement of the complaint.

            Each complaint will be recorded in GTN's Transportation Service
            Complaint Log maintained by GTN's Gas Transportation and Services
            Department located in Portland. Complaints will be logged by date
            and time received by GTN.

      24.2  GTN will initially respond to each complaint within forty- eight
            (48) hours after GTN receives it. GTN will provide a written
            response to each complaint within thirty (30) days after GTN
            receives it. GTN's written response will be sent to Shipper or
            potential Shipper by certified or registered mail. If the complaint
            was filed by the EBB, then GTN shall respond via the EBB. A copy of
            all complaints will be filed in the Transportation Service Complaint
            Log.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 172
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

25.   INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE
      AND CAPACITY AVAILABLE FOR TRANSPORTATION

      25.1  Any affiliated or nonaffiliated Shipper or potential Shipper may
            obtain information concerning the availability and pricing of GTN's
            transportation services and the pipeline capacity available for
            transportation by:

            (a)   Contacting GTN at:
                  Gas Transmission Northwest Corporation
                  Marketing and Transportation Department
                  1400 SW Fifth Avenue, Suite 900
                  Portland, OR 97201
                  Telephone: (503) 833-4300

                  Inquiries may be made orally or in writing. Upon request, GTN
                  will provide to any Shipper or potential Shipper a copy of its
                  FERC Gas Tariff, Third Revised Volume No. 1-A, as well as any
                  published notices concerning discounts then available to
                  existing Shippers on the GTN system.

            (b)   Subscribing to GTN's twenty-four (24) hour Electronic Bulletin
                  Board by calling 1-503-833-4310. The Electronic Bulletin Board
                  provides current information concerning the availability and
                  pricing of transportation service on the GTN system, including
                  all effective rates and discount notices, and capacity
                  available for transportation.

            (c)   Accessing GTN's Internet Web site through
                  WWW.PGE-NW.COM/OPERATIONS. This web site provides the same
                  information as available on GTN's Electronic Bulletin Board.

      25.2  The procedures to be followed by a potential Shipper requesting
            transportation service from GTN or by an existing Shipper requesting
            an amendment to its existing service or additional service from GTN
            are specified in Paragraph 18 of these Transportation General Terms
            and Conditions.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003
<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 173
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

25.   INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE
      AND CAPACITY AVAILABLE FOR TRANSPORTATION (Continued)

      25.3  The procedures to be followed by Shippers for submitting nominations
            for transportation service are specified in Paragraph 19 of these
            Transportation General Terms and Conditions.

26.   MARKET CENTERS

      The Market Center is defined as a point of interconnection between GTN and
      other pipelines and local distribution companies. GTN shall provide for
      Market Centers on GTN. Parties wishing to use Market Centers on the GTN
      system shall contact GTN for this service. At these Market Centers,
      entities may trade gas quantities without actively shipping the gas either
      upstream or downstream of the Market Center. Such entities must nominate
      for the gas transactions in accordance with the nomination procedures of
      the Transportation General Terms and Conditions of Third Revised Volume
      No. 1-A. An entity's nomination for upstream supply and downstream
      delivery must match the corresponding upstream Shipper nomination and the
      downstream customer request.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 174
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

27.   PLANNED GTN CAPACITY CURTAILMENTS AND INTERRUPTIONS

      27.1  When GTN needs to temporarily curtail or interrupt service to any
            Shipper hereunder for the purpose of making planned alterations or
            repairs, GTN shall give Shipper as much notice as possible of the
            process so that each Shipper's firm transportation requirements are
            taken into account in the planning process.

      27.2  In the spring of each year GTN shall publish on its Internet Web
            Site and its electronic bulletin board (EBB) to all Shippers a
            schedule of planned major maintenance and repairs which affect
            system capacity. The schedule shall show the estimated delivery
            point capacity for the next 12 months.

      27.3  On a daily basis GTN shall post, on its Internet Web Site and its
            EBB, capacity for each forthcoming gas day plus the estimated
            capacity for the next two gas days.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 175
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE

      28.1  Eligibility to Release

                  Any firm Shipper which contracts for firm transportation
                  service under Part 284 of the Commission's regulations
                  (Releasing Shipper) is eligible to release all or part of its
                  capacity (Parcel) for use by another party (Replacement
                  Shipper). Any Replacement Shipper which has previously
                  contracted for a Parcel may also release its capacity to
                  another party as a secondary release subject to the terms and
                  conditions described herein.

                  Upon releasing a Parcel, consistent with the terms and
                  conditions described herein, all Releasing Shippers shall
                  remain ultimately liable for all reservation charges billable
                  for the originally contracted service. The Releasing Shipper,
                  whether a primary or secondary capacity holder, must post the
                  capacity it seeks to release on GTN's Electronic Bulletin
                  Board (EBB) prior to the close of the Posting Period defined
                  herein.

                  A Releasing Shipper may release all or a portion of its
                  capacity for the remainder of the term of its contract and
                  extinguish its contractual obligations to GTN with respect to
                  that portion provided that: 1) the Replacement Shipper for
                  this capacity is creditworthy pursuant to GTN's credit
                  standards; and 2) that the rate paid by the Replacement
                  Shipper be no less than the rate contracted between the
                  Releasing Shipper and GTN for the maximum volume, for the
                  remaining term of the contract or the Releasing Shipper's
                  maximum tariff rate. The release may be structured such that
                  the right of first refusal may transfer to the Replacement
                  Shipper even if the release has recall provisions and has been
                  recalled by the Releasing Shipper at the end of the service
                  agreement.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 176
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITION
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.2  Types of Release

            A Releasing Shipper may release a Parcel for a term (Release Term)
            up to or equivalent to the remaining term under its service
            agreement with GTN. Types of releases include:

            NON-PREARRANGED - BIDDING REQUIRED

                  (1)   Greater than or equal to one day, is not prearranged and
                        requires bidding.

            PREARRANGED RELEASES - BIDDING REQUIRED

                  (1)   Greater than thirty-one days at a rate less than the
                        maximum applicable tariff rate. This type of release is
                        prearranged, allows for bidding up to the maximum
                        applicable tariff rate and allows for the right of first
                        refusal. Bidding is pursuant to the methodology selected
                        by the Releasing Shipper.

            PREARRANGED RELEASES - BIDDING NOT REQUIRED

                  (1)   Less than or equal to thirty-one days at a rate less
                        than the maximum applicable tariff rate. This type of
                        release is prearranged and does not require bidding.
                        This release cannot be rolled-over, renewed or otherwise
                        extended beyond the term described above unless the
                        Releasing Shipper follows the posting and bidding
                        procedures that apply to the particular term sought
                        contained in this Paragraph 28. The Releasing Shipper
                        may not re-release this Parcel to the same Replacement
                        Shipper until 28 days after the term of the initial
                        release has ended. Rollovers are permitted without
                        bidding or a waiting period provided the Prearranged
                        Shipper agrees to pay the maximum rate and meet all the
                        other terms and conditions of the release.

                  (2)   Greater than or equal to one day at the maximum
                        applicable tariff rate. This type of release is
                        prearranged and does not require bidding.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 177
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.3  Notice Requirements

            Any Releasing Shipper electing to release capacity shall submit a
            notice via GTN's EBB that it elects to release firm capacity. The
            notice shall set forth the following information:

            (a)   Releasing Shipper's legal name, contract number, and the name,
                  title, address, telephone number, and fax number of the
                  individual responsible for authorizing the release of
                  capacity.

            (b)   Rate schedule of the Releasing Shipper.

            (c)   In accordance with NAESB Standard 5.3.26, Version 1.5,
                  Releasing Shipper has choice to specify dollars and cents or
                  percents of maximum tariff rate in the denomination of bids
                  and all transportation service providers should support this.
                  Once the choice is made by the Releasing Shipper, the bids
                  should comport with the choice. In accordance with NAESB
                  Standard 5.3.27, Version 1.5, for purposes of bidding and
                  awarding, maximum/minimum rates specified by the Releasing
                  Shipper should include the tariff reservation rate and all
                  demand surcharges, as a total number or as stated separately.
                  If a volumetric rate is used, Releasing Shipper must indicate
                  whether bids on a reservation charge basis will be accepted as
                  well and if so must specify the method of evaluating the two
                  types of bids. Releasing Shipper also should indicate whether
                  bids will be accepted on a dollar basis or as a percentage of
                  the Releasing Shipper's as-billed rate.

            (d)   Daily quantity of capacity to be released, expressed in Dth/d,
                  at the designated delivery point(s). (This must not exceed
                  Releasing Shipper's maximum contract demand available for
                  capacity release and shall state the minimum quantity
                  expressed in Dth/d acceptable for release.)

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 178
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.3  Notice Requirements (Continued)

            (e)   The term of the release, identifying the date release is to
                  begin and terminate. The minimum release term acceptable to
                  GTN shall be one day.

            (f)   Whether the Releasing Shipper is willing to consider release
                  for a shorter period of time than that specified in (e) above
                  and if so, the minimum acceptable period of release.

            (g)   The receipt and delivery point.

            (h)   Whether Option 1, 2, or 3 shall be used to determine the
                  highest valued bid (see Section 28.7(a) for a description of
                  bid evaluation options 1, 2 and 3).

            (i)   Whether the Releasing Shipper wants GTN to market its released
                  capacity.

            (j)   Whether the Releasing Shipper requests to waive the
                  creditworthiness requirements and agrees in such event to
                  remain liable for all charges, or, if the release is for one
                  year (365 days) or less, whether Releasing Shipper requests
                  that the creditworthiness provisions of Paragraph
                  18.3(A)(1)(c) shall apply.

            (k)   Whether Releasing Shipper is a marketing or other affiliate of
                  GTN.

            (l)   If release is a prearranged release, the Prearranged Shipper
                  must be qualified pursuant to the criteria of Paragraph
                  28.6(a) unless waived above. Releasing Shipper shall include
                  the Prearranged Shipper bid information pursuant to Paragraph
                  28.6(b) with its release information and shall indicate
                  whether the Prearranged Shipper is affiliated with GTN or the
                  Releasing Shipper.

            (m)   Any special nondiscriminatory terms and conditions applicable
                  to the release.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 179
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.3  Notice Requirements (Continued)

            (n)   Tie-breaker method preferred: (1) pro rata, (2) lottery, (3)
                  order of submission (first-come/first-serve). If none are
                  selected, the system defaults to pro rata.

            (o)   Recall provisions. These provisions must be objectively
                  stated, nondiscriminatory, applicable to all bidders,
                  operationally and administratively feasible as determined by
                  GTN and in accordance with GTN's tariff.

            (p)   The minimum rate (percentage of: reservation charge or a
                  volumetric equivalent of the maximum reservation charge
                  applicable to the Parcel on a 100% load-factor basis)
                  acceptable to Releasor for this Parcel. Releasing Shipper also
                  should indicate whether bids will be accepted on a dollar
                  basis or as a percentage of the Releasing Shipper's as-billed
                  rate.

            (q)   Whether the Releasing Shipper is willing to accept contingent
                  bids that extend beyond the close of the Bid Period and, if
                  so, any nondiscriminatory terms and conditions applicable to
                  such contingencies including the date by which such
                  contingency must be satisfied (which date shall not be later
                  than the last day upon which GTN must award capacity) and
                  whether, or for what time period, the next highest bidder(s)
                  will be obligated to acquire the capacity should the winning
                  contingent bidder be unable to satisfy the contingency
                  specified in its bid.

            (r)   Whether the Releasing Shipper wants to specify a longer
                  bidding period for its Parcel than specified at Paragraph
                  28.8.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 180
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.4  Marketing of Capacity Fee

            GTN may act as a facilitator between a Releasing Shipper and a
            Replacement Shipper(s) that wishes to contract for that Releasing
            Shipper's capacity. All such Parcels must be posted on the EBB
            initially. A posting of a Parcel facilitated by GTN will include
            both the Parcel by the Releasing Shipper and the bid by the
            Prearranged Shipper. A marketing of capacity fee shall be negotiated
            between GTN and Releasing Shipper in a nondiscriminatory manner.
            Such a fee will apply when: a Releasing Shipper requests GTN to
            market released capacity, GTN actively markets such capacity beyond
            posting on the EBB, and such marketing results in capacity being
            released to a Replacement Shipper.

      28.5  Posting of a Parcel

            The posting of a Parcel constitutes an offer to release the capacity
            provided a willing Replacement Shipper submits a valid bid
            consistent with GTN's Transportation General Terms and Conditions.
            The posting must contain the information contained in Paragraph
            28.3. Any specific conditions posted by the Releasing Shipper must
            be operationally feasible, nondiscriminatory to other shippers, and
            in conformance with GTN's tariffs. If the Parcel is being released
            as a secondary release, then any recall provisions included in the
            primary release which may affect the re-release of this capacity
            must be included in the terms and conditions of the secondary
            release. Each Parcel will be reviewed by GTN prior to posting on the
            EBB for bidding The receipt of a valid release will be acknowledged
            by the issuance of a release confirmation to the Releasing Shipper's
            EBB mailbox by GTN.

            It is the Releasing Shipper's sole responsibility to provide release
            and Prearranged Shipper bid information in advance of the close of
            the Posting Period.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 181
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.5  Posting of a Parcel (Continued)

            Releasing Shippers who elect to release capacity based on
            nondiscriminatory recall provisions and/or special terms and
            conditions are required to submit their request to release capacity
            by at least two business days before the close of the Posting Period
            as stated in Section 28.8. This is to ensure adequate time for GTN
            to review and validate that any recall and/or special terms and
            conditions are not discriminatory.

            All Prearranged Shipper bids are subject to the Prearranged
            Shipper(s) meeting the preliminary qualifications as defined in
            Paragraph 28.6(a) for Replacement Shippers.

            A Parcel may be revised or withdrawn by the Releasing Shipper at any
            time prior to the close of the Posting Period. A Parcel cannot be
            revised after the close of the Posting Period. In accordance with
            NAESB Standard 5.3.14, Version 1.5 offers should be binding until
            written or electronic notice of withdrawal is received by the
            capacity release service provider. Parcels may be withdrawn
            subsequent to the close of the Posting Period and up until the close
            of the Bid Period only in situations where the Releasing Shipper has
            an unanticipated need for the capacity. In such instances, Releasing
            Shipper shall notify GTN electronically of its need to withdraw the
            Parcel due to an unanticipated need for the capacity. The withdrawal
            or revision of a Parcel will terminate all bids submitted for that
            Parcel to date. Replacement Shippers will need to resubmit their
            bids for the Parcel if the Parcel is resubmitted for release.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 182
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 183
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.6  Bidding for a Parcel

            (a)   Preliminary Qualification

                  Replacement Shippers are encouraged to pre-qualify in advance
                  of any postings on GTN's EBB as credit requirements will take
                  differing amounts of time to process depending on the
                  particular financial profile of Replacement Shippers. The
                  pre-qualification process will authorize a pre-set maximum
                  monthly financial exposure level for the Replacement Shipper.
                  Such exposure levels may be adjusted by GTN periodically
                  re-evaluating a Replacement Shipper's credit-worthiness.

                  Releasing Shippers may exercise their option to waive the
                  credit requirements for any Replacement Shipper wishing to bid
                  on a Parcel posted by that Releasing Shipper. Such waiver must
                  be made on a nondiscriminatory basis. GTN must be informed of
                  such waiver via the EBB before it will authorize such
                  Replacement Shipper's participation with respect to that
                  particular Parcel. In this instance, no pre-set maximum
                  monthly financial exposure level is applicable.

                  Should a Releasing Shipper waive the credit requirements for a
                  Replacement Shipper, the Releasing Shipper shall be liable for
                  all charges incurred by the Replacement Shipper in the event
                  such Replacement Shipper defaults on payment to GTN for such
                  capacity release service.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 184
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.6  Bidding for a Parcel (Continued)

            (a)   Preliminary Qualification (Continued)

                  Any potential Replacement Shipper may submit a bid for parcels
                  posted for release. GTN will determine the highest valued bid,
                  based on the bid evaluation method selected by the Releasing
                  Shipper, and verify that the Shipper placing the bid meets
                  GTN's credit requirements before awarding the parcel. Upon
                  notification by GTN of an award of a Parcel, GTN shall
                  complete a new FTS-1 or LFS-1 contract with the particulars of
                  the awarded Parcel and Replacement Shipper shall execute this
                  new contract electronically through the use of an
                  authorization code procedure on the EBB.

                  Once a Replacement Shipper has acquired capacity, authority is
                  granted to the Replacement Shipper to release that capacity,
                  unless the Releasing Shipper has specified that the Parcel
                  cannot be re-released.

                  The execution of the FTS-1 or LFS-1 service agreement will
                  constitute an obligation on the part of the Replacement
                  Shipper to be bound by the terms and conditions of GTN's
                  capacity release program as set forth in these Transportation
                  General Terms and Conditions.

            (b)   Submitting a Bid

                  All bids must be submitted through the use of GTN's EBB. Such
                  bids shall be "open" for all participants to review. The
                  particulars of all bids will be available for review but not
                  the identity of bidders. GTN will post the identity of the
                  winning bidder(s) only.

                  A Replacement Shipper cannot request that its bid be "closed",
                  nor can a Releasing Shipper specify that "closed" bids be
                  submitted on its releases. A Replacement Shipper may submit
                  only one bid per Parcel posted at any one point in time. Bids
                  received after the close of the Bid Period shall be invalid.
                  The Replacement Shipper may bid for no more than the quantity
                  of the Parcel posted by the Releasing Shipper. Simultaneous
                  bids for more than one Parcel are permitted.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 185
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.6  Bidding for a Parcel (Continued)

            (b)   Submitting a Bid (Continued)

                  A valid bid to contract for a Parcel must contain the
                  following information:

                  (1)   Replacement Shipper's legal name, address, telephone and
                        fax numbers and the name and title of the individual
                        responsible for authorizing the bid.

                  (2)   The identification of the Parcel bid on.

                  (3)   Term of service requested. The term of service must not
                        exceed the term included in the Parcel.

                  (4)   Percentage of the applicable maximum rate, as identified
                        in the Parcel, that Replacement Shipper is willing to
                        pay, or price in dollars and cents per Dth/d, that the
                        Replacement Shipper is willing to pay. A Replacement
                        Shipper may not bid below the minimum applicable charge
                        or rate.

                  (5)   The quantity desired not to exceed the quantity
                        contained in the Parcel, expressed on a Dth/d delivered
                        basis and greater than the minimum quantity acceptable
                        to Replacement Shipper.

                  (6)   Whether or not Replacement Shipper is an affiliate of
                        the Releasing Shipper.

                  (7)   A statement as to whether or not Replacement Shipper is
                        an affiliate of the Releasing Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 186
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.6  Bidding for a Parcel (Continued)

            (b)   Submitting a Bid (Continued)

                  (8)   An affirmative statement that Replacement Shipper agrees
                        to be bound by the terms and conditions of Rate Schedule
                        FTS-1 and GTN's capacity release provisions in its
                        tariff.

                  (9)   Whether the bid is a contingent bid and the
                        contingencies which must be satisfied by the date
                        specified by the Releasing Shipper in its posting of the
                        Parcel.

            (c)   Confirmation of Bids

                  The receipt of a valid bid by GTN will be Shipper's EBB
                  mailbox by GTN. It is the Replacement Shipper's sole
                  responsibility to verify the correctness of the submitted bid
                  and to take any corrective action necessary by resubmitting a
                  bid when notified of an invalid or incomplete bid by GTN via
                  the EBB. This must be done before the close of the Bid Period.

            (d)   Withdrawn or Revision of Bids

                  A previously submitted bid may be withdrawn or revised and
                  resubmitted at any time prior to the close of the Bid Period
                  with no obligation on the Replacement Shipper's part. In
                  accordance with NAESB Standard 5.3.15, Version 1.5, bids
                  cannot be withdrawn after the bid period ends. Resubmitted
                  bids must be equal to or greater in value than the initial
                  bids. Lower valued bids will be invalid. In accordance with
                  NAESB Standard 5.3.13, Version 1.5, bids should be binding
                  until written or electronic notice of withdrawal is received
                  by the capacity release service provider.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 187
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.7  Allocation of Parcels

            (a)   Primary Allocation

                  In accordance with NAESB Standard 5.3.3, Version 1.5, winning
                  bids for Parcels shall be awarded based on one of the
                  following three (3) options to be selected by the Releasing
                  Shipper when posting a Parcel:

                  Option 1 - Highest Rate Equivalent

                  Bids will be given priority based on the maximum rate bid as
                  represented by (1) a Replacement Shipper's bid of the
                  percentage of the maximum authorized reservation charge or a
                  volumetric equivalent of the maximum reservation charge
                  applicable to the Parcel on a 100% load factor basis, or (2) a
                  Replacement Shipper's bid in terms of absolute dollars and
                  cents per Dth. A bid queue will be maintained for each
                  individual Parcel.

                  Option 2 - Present Value

                  Bids will be given priority based on the net present value of
                  the bid according to the following formula:

                                               (1 + i) (n) -1
                  Present Value per = P * R *  --------------
                                                i (1 + i) (n)

                  where: P = percent of the rate or charge that the Replacement
                             Shipper is willing to pay.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 188
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.7  Allocation of Parcels (Continued)

            (a)   Primary Allocation (Continued)

                  R = Rate or charge calculated as: The applicable maximum
                  authorized reservation charge(s) per Dth (or a volumetric
                  equivalent of the maximum reservation charge(s) applicable to
                  the Parcel on a 100% load factor basis) in effect at the time
                  of the bid for service from the same receipt point to the same
                  delivery point under the Releasing Shipper's rate schedule.

                  i = FERC's annual interest rate divided by 12.

                  n = number of periods for which the bidder wishes to contract,
                  not to exceed the maximum periods to be released by the
                  Releasing Shipper. For releases greater than or equal to one
                  month, the period is the number of months. For releases less
                  than one month the period is the number of days.

                  A bid queue will be maintained for each individual Parcel.

                  Option 3 - Net Revenue. Bids will be given priority based on
                  the net revenue for the term of the bid.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 189
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.7  Allocation of Parcels (Continued)

            (a)   Primary Allocation (Continued)

                  If Releasing Shipper does not specify an option for
                  determining best bid, Option 2 will be the default option
                  used.

                  Under all options, GTN will evaluate and rank all bids for
                  Parcels.

            (b)   Right of First Refusal

                  In the case of a Prearranged Shipper's bid for a Parcel with a
                  term equal to one month or greater, at a rate other than at
                  the highest valued bid, pursuant to the methodology specified
                  by the Releasing Shipper, if the bid submitted by a subsequent
                  Replacement Shipper exceeds the value of the Prearranged
                  Shipper's bid, the Prearranged Shipper will be allowed to
                  match the higher valued bid. The Prearranged Shipper will be
                  allowed a match period, as specified in Section 28.8, to match
                  the higher valued bid, otherwise, the allocation will be
                  awarded to subsequent Replacement Shipper(s) in accordance
                  with the primary and secondary allocation mechanisms.

            (c)   Secondary Allocation

                  To the extent there is more than one Replacement Shipper
                  submitting a winning bid, the Parcel shall be allocated based
                  on one of the following tie-breaker methodologies to be
                  selected by the Releasing Shipper: pro rata, lottery, or order
                  of submission (first come/first serve).

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 190
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.7  Allocation of Parcels (Continued)

            (d)   Confirmation of Allocation

                  Upon each completion of an allocation, the successful
                  Replacement Shipper(s) will be notified of the terms under
                  which they have contracted for the awarded Parcel. The
                  notification will be provided in the form of an e-mail to the
                  Replacement Shipper(s). The notice will include the
                  Replacement Shipper's Rate Schedule FTS-1 or LFS-1 service
                  agreement number and the pertinent terms of the Replacement
                  Shipper's bid as well as any additional terms specified by the
                  Releasing Shipper. The Releasing Shipper will be notified of
                  the terms under which its Parcel has been awarded. The
                  notification will be provided in the form of an e-mail to the
                  Releasing Shipper. The notification will include all of the
                  pertinent terms of the Releasing Shipper's parcel.

            (e)   Purging of Expired Bids

                  All unfulfilled bids, as well as any unfulfilled portions of
                  bids which receive a partial award, will become ineffective as
                  of the completion of bid reconciliation and the close of the
                  Bid Period. Each unsuccessful Replacement Shipper which has
                  bid shall receive a notice by e-mail indicating the
                  ineffectiveness of the bid.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 191
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.7  Allocation of Parcels (Continued)

            (e)   Purging of Expired Bids (Continued)

                  Information regarding all bids for all Parcels shall be
                  archived off-line before being purged from the system.

      28.8  Scheduling of Parcels, Bids and Notifications

            In accordance with NAESB Standard 5.3.2, Version 1.6, the following
            timelines apply to capacity release transactions.

            For   biddable releases (less than 1 year):

              -   offers should be tendered by 12:00 P.M. CCT (10:00 A.M. PCT)
                  on a Business Day;

              -   open season ends no later than 1:00 P.M. CCT (11:00 A.M. PCT)
                  on a Business Day (evaluation period begins at 1:00 P.M. CCT
                  (11:00 A.M. PCT) during which contingency is eliminated,
                  determination of best bid is made, and ties are broken);

              -   evaluation period ends and award posting if no match required
                  at 2:00 P.M. CCT (12:00 P.M. PCT);

              -   match or award is communicated by 2:00 P.M. CCT (12:00 P.M.
                  PCT);

              -   match response by 2:30 P.M. CCT (12:30 P.M. PCT);

              -   where match is required, award posting by 3:00 P.M. CCT (1:00
                  P.M. PCT);

              -   contract issued within one hour of award posting (with a new
                  contract number, when applicable); nomination possible
                  beginning at the next available nomination cycle for the
                  effective date of the contract.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 192
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.8  Scheduling of Parcels, Bids and Notifications (Continued)

            For biddable releases (1 year or more):

                  -     offers should be tendered by 12:00 P.M. CCT (10:00 A.M.
                        PCT) four Business Days before award;

                  -     open season ends no later than 1:00 P.M. CCT (11:00 A.M.
                        PCT) on the Business Day before timely nominations are
                        due (open season is three Business Days);

                  -     evaluation period begins at 1:00 P.M. CCT (11:00 A.M.
                        PCT) during which contingency is eliminated,
                        determination of best bid is made, and ties are broken;

                  -     evaluation period ends and award posting if no match
                        required at 2:00 P.M. CCT (12:00 P.M. PCT);

                  -     match or award is communicated by 2:00 P.M. CCT (12:00
                        P.M. PCT);

                  -     match response by 2:30 P.M. CCT (12:30 P.M. PCT);

                  -     where match required, award posting by 3:00 P.M. CCT
                        (1:00 P.M. PCT);

                  -     contract issued within one hour of award posting (with a
                        new contract number, when applicable); nomination
                        possible beginning at the next available nomination
                        cycle for the effective date of the contract.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 193
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.8  Scheduling of Parcels, Bids and Notifications (Continued)

            For non-biddable releases:

            Timely Cycle

                  -     posting of prearranged deals not subject to bid are due
                        by 10:30 A.M. CCT (12:30 P.M. PCT);

                  -     contract issued within one hour of award posting (with a
                        new contract number, when applicable); nomination
                        possible beginning at the next available nomination
                        cycle for the effective date of the contract.

            Evening Cycle

                  -     posting of prearranged deals not subject to bid are due
                        by 5:00 P.M. CCT (3:00 P.M. PCT);

                  -     contract issued within one hour of award posting (with a
                        new contract number, when applicable); nomination
                        possible beginning at the next available nomination
                        cycle for the effective date of the contract.

            Intraday 1 Cycle

                  -     posting of prearranged deals not subject to bid are due
                        by 9:00 A.M. CCT (7:00 A.M. PCT);

                  -     contract issued within one hour of award posting (with a
                        new contract number, when applicable); nomination
                        possible beginning at the next available nomination
                        cycle for the effective date of the contract.

            Intraday 2 Cycle

                  -     posting of prearranged deals not subject to bid are due
                        by 4:00 P.M. CCT (2:00 P.M. PCT);

                  -     contract issued within one hour of award posting (with a
                        new contract number, when applicable); nomination
                        possible beginning at the next available nomination
                        cycle for the effective date of the contract.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 194
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.9  Capacity Recall and Reput

            28.9(a)     Capacity Recall

                        Releasing Shipper(s) may, to the extent permitted as a
                        condition of capacity release, recall released capacity
                        (scheduled or unscheduled) at the Timely Nomination
                        cycle and the Evening Nomination cycle, and recall
                        unscheduled released capacity at the Intra-Day 1 and
                        Intra-Day 2 Nomination cycles by providing notice to the
                        Transporter by the following times for each cycle: 8:00
                        A.M. CCT (6:00 A.M. PCT) for the Timely Nomination
                        cycle; 5:00 P.M. CCT (3:00 P.M. PCT) for the Evening
                        Nomination cycle; 8:00 A.M. (6:00 A.M. PCT) for the
                        Intra-Day 1 Nomination cycle; and 3:00 P.M. (1:00 P.M.
                        PCT) for the Intra-Day 2 Nomination cycle. Notification
                        to replacement shippers shall be provided by Transporter
                        within one hour of receipt of recall notification.

            28.9(b)     Capacity Reput

                        In accordance with NAESB Standard 5.3.7, Version 1.5,
                        capacity that has been recalled by the Releasing Shipper
                        may be reput to the Replacement Shipper in accordance
                        with the reput provisions of the release (See Section
                        28.3(o)). Shipper seeking to reput capacity shall notify
                        GTN of the reput by 8:00 A.M. Central Clock Time (6:00
                        A.M. PCT). It is the Releasing Shipper's obligation to
                        notify and secure any necessary agreement by the
                        Replacement Shipper to accept the reput under the terms
                        of the release prior to notifying GTN.

            28.9(c)     In accordance with NAESB Standard 5.3.8, Version 1.5,
                        reput method and rights should be specified at the time
                        of the deal. Reput method and rights are individually
                        negotiated between the Releasing Shipper and Replacement
                        Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 195
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.10 Crediting, Billing Adjustments and Refunds

            (a)   Eligibility

                  GTN shall provide revenue credits to any Releasing Shipper
                  which releases capacity to a Replacement Shipper pursuant to
                  the provisions of Paragraph 28. GTN and Shipper may, in
                  connection with a Negotiated Rate Agreement under a firm rate
                  schedule, agree upon payment obligations and crediting
                  mechanisms in the event of a capacity release that vary from,
                  or are in addition to, those set forth in this Section 28.10;
                  provided, however, that terms and conditions of service may
                  not be negotiated.

            (b)   Monthly Crediting Procedure

                  Revenue credits for released capacity shall be credited
                  monthly as an offset to a Releasing Shipper's reservation
                  charge (or the volumetric equivalent of the reservation charge
                  on a 100% load-factor basis applicable to the Releasing
                  Shipper. This shall also be referred to in this Paragraph 28.9
                  as the equivalent volumetric rate) payable to GTN under the
                  applicable rate schedule for the service that has been
                  released. GTN shall credit each month to the Releasing
                  Shipper's account 100% of the revenues from the charges
                  invoiced to the Replacement Shipper(s) for the reservation
                  charge (or equivalent volumetric rate).

            (c)   Billing Adjustments

                  GTN shall apply the revenues received from Replacement
                  Shippers first to the reservation charge (or equivalent
                  volumetric rate), next to the GRI reservation surcharge.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 196
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.10 Crediting, Billing Adjustments and Refunds (Continued)

            (c)   Billing Adjustments (Continued)

                  Should Replacement shipper default on payment to GTN of the
                  reservation charge (or equivalent volumetric rate) GTN shall
                  bill Releasing Shipper for such unpaid charges and apply
                  interest to such adjustments in accordance with the provisions
                  of Paragraph 8 of the Transportation General Terms and
                  Conditions.

            (d)   Excess Revenue Credits

                  Releasing Shipper is entitled to excess revenue credits
                  resulting when the reservation charge (or equivalent
                  volumetric rate) revenues actually received by GTN from the
                  Replacement Shipper(s) exceed the reservation charge (or
                  equivalent volumetric rate) revenues which would have been
                  received by GTN from the Releasing Shipper if capacity was not
                  released.

            (e)   Refunds

                  GTN shall track all changes in its rates approved by the
                  Commission. In the event the Commission orders refunds of any
                  such rates charged by GTN and previously approved, GTN shall
                  make corresponding refunds to all affected Shippers including
                  Shippers receiving capacity release service

                  In such instances when rates to Replacement Shippers are
                  reduced, GTN shall make corresponding adjustments to the
                  crediting of revenues to Releasing Shippers for the period
                  such refunds are payable.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 197
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.10 Crediting, Billing Adjustments and Refunds (Continued)

            (f)   In the event Releasing Shipper's Transportation Service
                  Agreement is terminated pursuant to these Transportation
                  General Terms and Conditions, and thirty (30) days notice has
                  been provided to Replacement Shipper(s), a Replacement Shipper
                  that currently holds temporary release capacity has the right
                  to elect to contract with GTN at the Replacement Shipper's MDQ
                  for the remaining term of its release contract and at the
                  lesser of (1) the Releasing Shipper's original contract rate,
                  or (2) the maximum recourse rate, provided that the
                  Replacement Shipper meets GTN's credit-worthiness standards
                  for Firm Transportation Service. The Replacement Shipper shall
                  make its election by the end of the thirty (30) day notice
                  period.

                  If a Replacement Shipper does not elect to contract with GTN
                  at its replacement MDQ for the remaining term of its release
                  contract and at the rate level that the Releasing Shipper
                  originally contracted for, GTN shall have the right to
                  terminate the Replacement Shipper's Transportation Service
                  Agreement following the election period and offer such
                  capacity through an open season posting that will subject the
                  capacity to competitive bidding. In the event Transporter
                  terminates service, Transporter may exercise all remedies
                  available to it hereunder, at law or in equity.

                  Replacement Shippers with prospective claims to temporary
                  release capacity will not have rights to such capacity.
                  Prospective claims to permanent releases of capacity will be
                  honored to the extent that a Replacement Shipper meets GTN's
                  credit-worthiness standards for Firm Transportation Service.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 198
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

28.   CAPACITY RELEASE (Continued)

      28.11 Adoption of NAESB Capacity Release Standards

            The following NAESB Standards are adopted by, and clarify, the
            capacity release provisions set forth in this Section 28. Unless
            otherwise specified, all standards are Version 1.5:

            5.3.1, 5.3.4; 5.3.5; 5.3.9; 5.3.11; 5.3.12; 5.3.16; and 5.3.19.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 199
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 200
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

29.   FLEXIBLE RECEIPT AND DELIVERY POINTS

      29.1  Firm Service

            (a)   Addition of a Receipt Point

                  Any firm Shipper receiving service under Part 284 of the
                  Commission's regulations is entitled to use the receipt point
                  specified in its service agreement as a primary receipt point.
                  A firm Shipper may add a secondary receipt point at any time
                  during the life of the contract provided that secondary
                  receipt point is within the Shipper's Primary Path.

                  Firm Shippers who are billed under a reservation charge and a
                  delivery rate will continue to be billed reservation charges
                  based on the primary receipt point while delivery rates,
                  including fuel, will be calculated on the receipt point
                  actually used.

                  To the extent additional meter station capacity or other
                  facilities are required to effect the receipt point change,
                  GTN will construct the additional capacity consistent with
                  Paragraph 18.5.

            (b)   Changing a Receipt Point

                  A firm Shipper may change primary receipt points to a
                  different receipt point within its Original Primary Path but
                  will continue to be billed reservation charges based on the
                  original primary receipt point. Changes in receipt points will
                  be permitted provided sufficient receipt point capacity exists
                  at the receiving meter station and subject to any operating
                  constraints. To the extent additional meter station capacity
                  or other facilities are required to effect the receipt point
                  change, GTN will construct the additional capacity at the firm
                  Shipper's expense consistent with Paragraph 18.5.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 201
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

29.   FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)

      29.1  Firm Service (Continued)

            (c)   Addition of a Delivery Point

                  Each firm Shipper is entitled to an allocation of its MDQ to a
                  delivery point(s) as its primary delivery point(s).

                  A firm Shipper may add secondary delivery points at any time
                  during the life of the contract provided that the secondary
                  delivery points are within the Shipper's Primary Path. In this
                  case, the firm Shipper will continue to be billed any
                  applicable reservation charges based on the primary delivery
                  point; however, delivery rates, including fuel, will be
                  calculated based on the delivery point actually used.

                  A firm Shipper with primary deliveries allocated to a minor
                  delivery point may add secondary delivery points to its
                  contract provided that the addition of the secondary delivery
                  point does not materially impact service to other firm
                  Shippers.

                  To the extent additional meter station capacity is required to
                  effect the delivery point(s) change, and subject to any
                  operating constraints GTN will construct the additional
                  capacity consistent with Paragraph 18.5.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 202
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

29.   FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)

      29.1  Firm Service (Continued)

            (d)   Changing a Delivery Point

                  A firm Shipper may change primary delivery points to a
                  different delivery point within its Primary Path but will
                  continue to be billed reservation charges based on the
                  original primary delivery point. A firm shipper may not change
                  its Primary Delivery Point to a location that would change the
                  direction of flow of the Shipper's Primary Path as defined in
                  Section 1.31 of this Gas Tariff. Changes in delivery points
                  will be permitted provided sufficient delivery point capacity
                  exists at the delivery meter station. To the extent additional
                  meter station and subject to any operating constraints
                  capacity is required to effect the delivery point change, GTN
                  will construct the additional capacity at the firm Shipper's
                  expense consistent with Paragraph 18.5.

                  A firm Shipper with primary deliveries allocated to a minor
                  delivery point may change primary delivery points in its
                  contract provided that the change of primary delivery point
                  does not materially impact service to other firm Shippers.

      29.2  Interruptible Service

            (a)   Change of a Receipt/Delivery Point

                  Interruptible Shippers will have the right to flexible receipt
                  and delivery points, at a lower priority than firm or released
                  services.

            (b)   Addition of a Receipt or Delivery Point

                  Except as otherwise provided in this paragraph, Shippers
                  receiving service under any Part 284 interruptible
                  transportation rate schedule shall be deemed to have access to
                  all receipt and delivery points available under the
                  interruptible transportation rate schedule under which that
                  Shipper is taking service.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                             Sheet Nos. 203 - 207
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 208
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

31.   NEGOTIATED RATES

      31.1  Availability. Notwithstanding anything to the contrary contained in
            this Tariff, including the provisions of the rate schedules
            contained herein, GTN and Shipper may mutually agree to a Negotiated
            Rate under any Agreement, provided that Shipper has not acquired its
            capacity on a temporary basis under the capacity release provisions
            of Paragraph 28 of these Transportation General Terms and
            Conditions. If a portion of the capacity under any existing
            Agreement is agreed to be priced at Negotiated Rates, the existing
            maximum or discounted tariff rates will continue to apply to the
            capacity not subject to the Negotiated Rates. As a recourse to the
            Negotiated Rates, any Shipper may receive service at applicable
            maximum tariff rates, including surcharges. The Negotiated Rate may
            be less than, equal to, or greater than the maximum and minimum
            applicable tariff rate; may be based on a rate design other than
            straight-fixed variable; and may include a minimum quantity. GTN's
            Recourse Rates shall be available to any Shipper that does not agree
            to a Negotiated Rate. Recourse Rates are set forth on the Rate
            Sheets within this Tariff.

            GTN and a Shipper may agree to a Negotiated Rate for the entire term
            of a Transportation Service Agreement, or may agree to a Negotiated
            Rate for some portion of the term of a Transportation Agreement. GTN
            and Shipper may agree to apply the Negotiated Rate to all or a
            portion of capacity under Shipper's Firm Transportation Service
            Agreement.

            During the period a Negotiated Rate is in place, the Negotiated Rate
            shall govern and apply to the Shipper's service under the Negotiated
            Rate Agreement and the otherwise applicable rate, rate component,
            charge or credit which the parties have agreed to replace with the
            Negotiated Rate shall not apply to, or be available to, the Shipper.
            Only those rates, rate components, charges or credits identified by
            GTN and Shipper in writing as being superceded by a Negotiated Rate
            shall be ineffective during the period that the Negotiated Rate is
            effective; all other rates, rate components, charges, or credits
            prescribed, required, established or imposed by this Rate Schedule
            or Tariff shall remain in effect. At the end of the period during
            which the Negotiated Rate is in effect, the otherwise applicable
            tariff rates or charges shall govern any service provided to
            Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 209
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

31.   NEGOTIATED RATES (Continued)

      31.2  Filing requirement. Unless GTN executes and files a non-conforming
            agreement, GTN will submit to the Commission on or before the
            commencement of service under a Negotiated Rate Contract a tariff
            sheet stating the exact legal name of the Shipper, Negotiated Rate,
            the rate schedule, the receipt and delivery points, the contract
            quantities and, where applicable, the Negotiated Rate Formula
            underlying a Negotiated Rate for any Negotiated Rate Agreement. The
            filing will contain a provision that the Negotiated Rate Agreement
            does not deviate any material respect from the Form of Agreement in
            the tariff for the applicable rate schedule.

      31.3  Rate Treatment. GTN shall have the right to seek in future general
            rate proceedings discount-type adjustments in the design of its
            rates related to Negotiated Rate Agreements that were converted from
            pre-existing discount Agreements to Negotiated Rate Agreements. In
            those situations, GTN may seek a discount-type adjustment based upon
            the greater of: (a) the Negotiated Rate revenue received; or (b) the
            discounted tariff rate revenues which otherwise would have been
            received.

      31.4  Limitations. This Paragraph 31 does not authorize GTN to negotiate
            terms and conditions of service.

      31.5  Capacity Release. Negotiated Rates do not apply as the price cap for
            capacity release transactions. Further, capacity release bids must
            conform to GTN's applicable tariff rates, as further described in
            Section 28.6(b)(4) of these Transportation General Terms and
            Conditions.

      31.6  Accounting Treatment. GTN shall maintain separate records for all
            revenues associated with Negotiated Rate transactions. Transactions
            related to Negotiated Rate Agreements which originated as a
            pre-existing discounted service and were subsequently converted will
            be recorded separately from those originating as Negotiated Rate
            Agreements. GTN shall record each volume transported, billing
            determinants, rate component, surcharge, and the revenue associated
            with its Negotiated Rates so that this information can be filed,
            separately identified, and separately totaled, as part of and in the
            format of Statements G, I, and J in GTN's next general rate change
            application.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 210
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITION
                                   (Continued)

32.   EQUALITY OF TRANSPORTATION SERVICE

      GTN hereby states that the terms and conditions of service for all
      unbundled sales and transportation services provided in GTN's FERC Gas
      Tariff, Third Revised Volume No. 1-A, are provided on a basis that is
      equal in quality for all Shippers. All Shippers can access all sellers of
      gas and receive the same quality of service on GTN whether their gas
      supplies are purchased from GTN or any other seller. Furthermore, no
      preference is accorded to any affiliate of GTN for sales and
      transportation services provided by GTN.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 211
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

33.   RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
      AGREEMENT

      Firm Shippers (original capacity holders) under GTN's firm transportation
      rate schedules of Third Revised Volume No. 1-A who hold capacity for terms
      greater than or equal to one year at the maximum authorized reservation
      charge or rate shall have the right of first refusal at the expiration of
      their service agreements, subject to the following procedures. Original
      capacity holders must notify GTN one year prior to the primary expiration
      date of their service agreements whether they elect to terminate or not to
      terminate the service agreements.

      One year prior to the expiration of the service agreement, GTN will post a
      notice on its EBB that the original capacity holder's service agreement
      will expire and whether the original capacity holder has either elected or
      not elected to terminate.

      33.1  In the event original capacity holder elects termination, GTN shall
            subject this capacity to a bidding process. GTN will commence open
            bidding no later than 3 months prior to the service agreement
            expiration. The bid period will be no less than 5 business days in
            duration. GTN will announce the bid winner(s) as soon as practicable
            after the close of the bid period, provided, however, that GTN will
            have no obligation to accept any bid(s) at rates less than the
            maximum applicable rate in effect. Tied bids will be awarded on a
            pro rata basis. Winning Shipper(s) and GTN must execute a new firm
            transportation service agreement prior to service commencement. New
            long-term Shippers will be subject to the highest incremental fuel
            rate on the GTN system where such fuel rate otherwise applies to
            expansion Shippers on the GTN system.

      33.2  In the event original capacity holder does not elect termination,
            GTN will commence open bidding no later than 3 months prior to the
            service agreement expiration. The bid period will be no less than 5
            business days in duration. GTN will notify the original capacity
            holder of the highest bid(s) as soon as practicable, provided,
            however, that GTN will have no obligation to accept any bid(s) at
            rates less than the maximum applicable rate in effect. In the event
            that GTN does not receive any acceptable bids, the original capacity
            holder shall not be entitled to continue to receive transportation
            service upon the expiration of its contract except by agreeing to
            pay the maximum applicable tariff rate. If GTN accepts any bid(s)
            the original capacity holder will have 2 weeks from the date of
            notice

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 212
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

33.   RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
      AGREEMENT (Continued)

      33.2  (Continued)

            to match the highest bid(s), provided that the original capacity
            holder shall not have to match any bid rate higher than the maximum
            applicable rate and shall not be subject to the highest incremental
            rate on the GTN system. GTN will announce the winning bid(s) as soon
            as practicable after the close of the match period. If the original
            capacity holder matches the highest bid(s), the capacity is awarded
            to the original capacity holder. If the original capacity holder
            does not match the highest bid(s), the capacity shall be awarded to
            the highest acceptable bid(s). If there is more than one winning
            bid, GTN shall award capacity on a pro rata basis. New long-term
            Shippers will be subject to the highest incremental fuel rate on the
            GTN system where such fuel rate otherwise applies to expansion
            shippers on the GTN system. New Shippers must execute a firm
            transportation service agreement with GTN prior to service
            commencement. Original capacity holder is allowed to retain a
            portion of its capacity by matching price and term according to the
            procedure outlined in this provision, provided that the original
            contract path is maintained.

      33.3  Bids shall be evaluated on the net present value incorporating price
            and term. The net present value of revenues to be received from a
            Shipper bidding a Negotiated Rate shall be calculated using the
            proposed reservation charge revenues and any proposed usage charge
            revenues guaranteed by a minimum volume commitment or otherwise.
            Where the Negotiated Rate is based on a Negotiated Rate Formula, the
            future value of which cannot be determined at the time of the
            bidding, GTN shall estimate the future revenues to be received under
            the Negotiated Rate Formula using currently available data.

      33.4  If there are no competing bids other than that of the original
            capacity holder, the rate and terms of continuing service is to be
            negotiated between existing capacity holder and GTN. In addition, in
            this instance, if the existing capacity holder agrees to pay the
            maximum authorized rate, the existing capacity holder may determine
            the term it desires and GTN must extend its contract to the existing
            capacity holder accordingly.

      33.5  Shippers who terminate their service agreements are not liable for
            any reservation charges or other charges applicable to the new
            Shipper contracting for this capacity.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                      First Revised Sheet No. 213
Third Revised Volume No. 1-A                                         Superseding
                                                          Original Sheet No. 213

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

33.   RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE
      AGREEMENT (Continued)

      33.6  Only bona fide bids will be accepted. A bona fide bid offer shall
            be: (a) submitted via GTN's EBB; (b) accepted in principle; and (c)
            pursuant to an arms-length transaction. If the Service Agreement is
            not executed within 30 days, the request for capacity shall expire
            without prejudice to the prospective Shipper's right to submit a new
            request for capacity. GTN shall then notify the Shipper via the EBB
            of the acceptable offer, if any, having the next greatest economic
            value in accordance with the provisions of this Paragraph. If there
            is no other acceptable offer, the Shipper may continue service in
            accordance with this Paragraph.

      33.7  Right of first refusal rights held by Shipper continue to apply
            following an election of termination pursuant to existing evergreen
            language contained in Shipper's Firm Transportation Service
            Agreement. A Shipper that holds evergreen rights in addition to a
            right of first refusal under a Firm Transportation Service Agreement
            must first elect termination under the evergreen provision in order
            to initiate the right of first refusal process. When either GTN or
            Shipper elects termination under an evergreen provision, GTN shall
            not be obligated to continue Shipper's evergreen rights on a
            contract extended through the right of first refusal process.
            Shippers may exercise their right of first refusal rights consistent
            with this Paragraph 33.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 22, 2003                      Effective on: November 21, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                             Sheet Nos. 214 - 215
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 216
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

34.   ELECTRONIC COMMUNICATIONS

    34.1  Electronic Bulletin Board

      GTN shall maintain an Electronic Bulletin Board (EBB) which will provide a
      range of electronic pipeline services and information to all parties on a
      nondiscriminatory basis. The EBB is available to any party that has
      compatible equipment for electronic communication and transmission of
      data. Access to the EBB is obtained by contacting GTN's EBB Administrator
      at 503/833-4310 and requesting a user identification. The EBB will operate
      24 hours a day; however, certain functions may be limited to specific
      operating times during the business day. There is no usage fee associated
      with or charged by GTN for using the EBB.

      GTN shall exercise reasonable efforts to ensure the accuracy and security
      of information presented on the EBB.

    34.2  Services Available through the EBB.

      GTN's EBB provides information and services to allow shippers to perform a
      variety of business functions on GTN's system. Information and services
      include:

      (a)   Capacity Release

            The EBB provides the functionality for all capacity release
            activities, allowing a Shipper to post capacity for release, review
            capacity available for release, bid on capacity posted for release,
            and similar activities. Capacity Release activities include:

                  -     Posting capacity release offers

                  -     Bidding on posted capacity release offers

                  -     Review/download available parcel data

                  -     Review/download historic capacity release data.

      (b)   Nominations and Confirmations

            The EBB provides the functionality for a shipper to create or modify
            a nomination, receive confirmations, and gain information about the
            status of the shipper's account.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 217
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

34.   ELECTRONIC COMMUNICATIONS (Continued)

34.2  Services Available Through the EBB (Con't).

      (c)   Shipper Account Information

            The EBB allows a shipper to obtain a variety of information about
            its account.

      (d)   Operations, Information and Bulletins

            The EBB provides operational bulletins and maintenance schedules,
            capacity availability, and credit information.

      (e)   Want Adds

            The EBB provides a forum for Shippers to solicit interest in
            acquiring or releasing capacity.

      (f)   Requests For Service

            The EBB provides the transportation service request form. This form
            must be completed in order for a shipper to request new service or
            receive authorization to bid for capacity posted for release.

      (g)   Tariff and Rates

            The EBB provides GTN's Tariff in searchable form, as well as a
            summary of GTN's rates for service at major paths.

      (h)   Available Firm Service

            The EBB provides information about GTN's available firm service.

      (i)   Marketing Affiliate Information

            The EBB provides the marketing affiliate information required by the
            Commission's regulations.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 218
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

34.   ELECTRONIC COMMUNICATIONS (Continued)

      34.2  Services Available Through the EBB (Con't)

            (j)   Complaint Procedures

                  The EBB outlines procedures for filing complaints.

            (k)   File Download Area

                  The EBB allows a shipper to directly download a variety of
                  information, as required by Commission Regulations or as
                  otherwise made available by GTN from time to time.

            (l)   Help & Contact Information

                  The EBB provides help and contact information.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 219
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

34.   ELECTRONIC COMMUNICATIONS (Continued)

      34.3  Historical Information

            GTN will back up daily transaction information on the EBB. This
            historical information shall be kept for a three-year period and may
            be archived off-line. Information that may be accessed includes
            Parcel information and bid information associated with that Parcel,
            including the identity of the winning bid and bidder.

            GTN will provide access to historical data in one of the following
            manners:

            (a)   Direct access by parties via the EBB. In such cases, data may
                  be viewed, down loaded to a computer or printed by the party.

            (b)   GTN may elect to archive historical data off-line. Parties may
                  access this data by sending a written or an electronic mail
                  request to the GTN Capacity Release System Administrator
                  requesting such historical data. GTN will make such
                  information available to Shippers.

      34.4  GTN Internet Web Site

            GTN maintains an Internet Web Site at WWW.PGE-NW.COM.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 220
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

34.   ELECTRONIC COMMUNICATIONS (Continued)

      34.5  Electronic Data Interface

            GTN shall maintain an electronic data interface ("EDI") as required
            by the standards for electronic delivery mechanisms promulgated by
            GISB and incorporated in Paragraph 40 of this tariff. EDI is
            available to any party with access to compatible equipment for
            electronic communication and transmission of data in accordance with
            the GISB standards. Access to GTN's EDI system is obtained by
            contacting GTN's Gas Transportation Department at 503-833-4300.

      35.   Reserved

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 221
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

35.   Competitive Equalization Surcharge Revenue Credit

      (a)   Applicability. Competitive Equalization Surcharge ("CES") revenues
            received by GTN will be credited to Eligible Shippers as set forth
            below.

      (b)   Eligible Shippers. A Shipper shall be eligible to receive a credit
            of CES revenues if it takes service under Rate Schedule FTS-1,
            LFS-1, or ITS-1.

      (c)   Timing of Credits. Within 45 days after November 1st of each year,
            GTN shall determine the total amount of the CES revenues received
            during the previous 12-month period and the portion of such amount
            to be credited to each Eligible Shipper as described below. Such
            revenue credits shall be reflected as a credit billing adjustment on
            the next bills rendered to the Eligible Shippers. In the event that
            such credit billing adjustment would result in a net credit on the
            total bill to any Shipper, or in the event the Eligible Shipper no
            longer is a shipper on GTN's system, GTN will pay to such Shipper
            its share of the CES revenues within 15 days after determination of
            the amount of the credit due to the Shipper.

      (d)   Allocation Method. CES revenues shall be credited to each Eligible
            Shipper based on the proportion of the revenues received during the
            12-month period from each Eligible Shipper for service rendered
            under Rate Schedules FTS-1, LFS-1 and ITS-1 (exclusive of service
            rendered on the Extensions) divided by the total revenue received
            from Eligible Shippers during such period.

      (e)   Payment of Interest. GTN shall pay interest to Eligible Shippers on
            any revenue credits from the date such credits accrue. Such interest
            shall be calculated based upon the methodology of interest specified
            in Section 154.501(d) of the Commission's Regulations.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 222
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

35A.  CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS

      (1)   Interruptible Transportation Revenue Credits on Coyote Springs
            Extension

            (a)   Applicability. Revenue credits from interruptible
                  transportation revenues received by GTN from Rate Schedule
                  ITS-1 (E-3) Shippers shall be provided to GTN's firm Shippers
                  under Rate Schedules FTS-1 (E-3) ("Eligible Shippers"),
                  excluding Shippers receiving service under a Capacity Release
                  Service Agreement.

            (b)   Crediting Percentage. GTN shall credit to Eligible Shippers 90
                  percent of interruptible transportation revenues received
                  during each 12-month period, commencing November 1st of each
                  year, but only to the extent that such transportation revenues
                  exceed the amount of fixed costs which were allocated to
                  interruptible transportation (Cost Allocation Amount) by GTN
                  as part of designing GTN's effective transportation rates
                  during such 12-month period. To the extent that GTN is
                  required to provide interruptible transportation revenue
                  credits during any period during which this Paragraph 35A
                  shall be or shall have been in effect for less than 12
                  months,a "Short Period", GTN shall pro rate the Cost
                  Allocation Amount by the number of days during such Short
                  Period as compared to the total number of days in such 12
                  months. To calculate the interruptible transportation
                  revenue credit due under the provisions of this paragraph,
                  where applicable, such pro rated Cost Allocation Amount shall
                  be compared to GTN's actual interruptible revenues for the
                  Short Period.

            (c)   Timing of Credits. Within 45 days after November 1st of each
                  12-month period or after the end of a Short Period, if
                  applicable, GTN shall determine the total amount of the
                  applicable Rate Schedule ITS-1 (E-3) revenues received during
                  the 12-month period or Short Period and the distribution of
                  the interruptible revenue credits due to Eligible Shippers as
                  described below. Such revenue credits shall be reflected as a
                  credit billing adjustment in the next invoices rendered to the
                  Eligible Shippers. In the event that such credit billing
                  adjustment would result in a credit total invoice to any
                  Shipper, GTN will refund the excess credit billing adjustment
                  to the Shipper in cash within 15 days after determination of
                  the amount of the credit due to the Shipper.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 223
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

35A.  CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS
      (Continued)

      (1)   Interruptible Transportation Revenue Credits on Coyote Springs
            Extension (Continued)

            (d)   Exclusion. Revenue credits shall not be awarded for that
                  portion of interruptible revenues that are attributable to:
                  (1) the recovery by GTN of variable costs, which portion shall
                  be equal to the minimum usage charge for Rate Schedule ITS-1
                  (E-3), and (2) relate to other volumetric surcharges such as
                  GRI and ACA.

            (e)   Distribution Method. Interruptible transportation revenue
                  credits shall be credited to each Eligible Shipper on a pro
                  rata basis in proportion to the reservation revenues received
                  during the 12-month period or Short Period from each Eligible
                  Shipper divided by the total reservation revenue for each
                  Eligible Shipper received during such period. The reservation
                  revenues shall include the reservation charges which the
                  Eligible Shippers actually pay prior to the distribution of
                  all revenue credits, and including reservation charges
                  applicable to capacity which was released into GTN's Capacity
                  Release Programs during the 12-month period year or Short
                  Period by the Eligible Shipper.

            (f)   GTN shall pay interest to Eligible Shippers on any revenue
                  credits from the date such credits accrue. Such interest shall
                  be calculated based upon the rate of interest specified in
                  Section 154.67(c) of the Commission's regulations.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 224
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

35A.  CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS
      (Continued)

      (2)   Interruptible Transportation Revenue Credits on Medford Extension

            (a)   Applicability. Revenue credits from interruptible
                  transportation revenues received by GTN from Rate Schedule
                  ITS-1 (E-1) Shippers shall be credited to the deferred account
                  for Washington Water Power Company's WP Natural Gas subsidiary
                  in accordance with the mechanism approved by Order of June 1,
                  1995, 71 FERC Paragraph 61,268.

            (b)   Crediting Percentage. GTN shall credit to the deferred account
                  90 percent of interruptible transportation revenues received
                  during each 12-month period, commencing November 1st of each
                  year, but only to the extent that such transportation revenues
                  exceed the amount of fixed costs which were allocated to
                  interruptible transportation (Cost Allocation Amount) by GTN
                  as part of designing GTN's effective transportation rates
                  during such 12-month period. To the extent that GTN is
                  required to provide interruptible transportation revenue
                  credits during any period during which this Paragraph 35A
                  shall be or shall have been in effect for less than 12 months,
                  a "Short Period", GTN shall pro rate the Cost Allocation
                  Amount by the number of days during such Short Period as
                  compared to the total number of days in such 12 months. To
                  calculate the interruptible transportation revenue credit due
                  under the provisions of this paragraph, where applicable, such
                  pro rated Cost Allocation Amount shall be compared to GTN's
                  actual interruptible revenues for the Short Period.

            (c)   Exclusion. Revenue credits shall not be awarded for that
                  portion of interruptible revenues that are attributable to the
                  recovery by GTN of variable costs, which portion shall be
                  equal to the minimum usage charge for Rate Schedule ITS-1
                  (E-1).

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 225
Third Revised Volume No. 1-A

                   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 first be
      applied to the GRI Surcharge and last 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:

      1)    achievement of a specified quantity levels (including quantity
            levels above, below, or equal to a specified level);

      2)    specified time periods;

      3)    specified points of receipt, points of delivery, supply areas,
            defined geographic areas; or transportation paths; or

      4)    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).

      In all circumstances the discounted rate shall be between the maximum rate
      and the minimum rate applicable to the service provided.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                                    Sheet No. 226
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 227
Third Revised Volume No. 1-A

                          GENERAL TERMS AND CONDITIONS
                                   (Continued)

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

      The effective fuel and line loss percentages under Rate Schedules FTS-1
      and ITS-1 shall be adjusted downward to reflect reductions and may be
      adjusted upward to reflect increases in fuel usage and line loss in
      accordance with this Section 37.

      37.1  Computation of Effective Fuel and Line Loss Percentage

            The effective fuel and line loss percentage shall be the sum of the
            current fuel and line loss percentage and the fuel and line loss
            surcharge percentage.

      37.2  The Current Fuel and Line Loss Percentage

            (a)   For each month, the current fuel and line loss percentage
                  shall be determined in accordance with Section 37.2(c) hereof.
                  The current fuel and line loss shall be effective from the
                  first day of such month and shall remain in effect for the
                  month.

            (b)   The current fuel and line loss percentage to be applicable for
                  the month shall be posted on GTN's Electronic Bulletin Board
                  not less than seven (7) days prior to the beginning of the
                  month.

            (c)   The current fuel and line loss percentage for the month shall
                  be determined on the basis of (1) the estimated quantities of
                  gas to be received by GTN for the account of Shippers during
                  such month and (2) the projected quantities of gas that shall
                  be required for fuel and line loss during such month, adjusted
                  for overrecoveries or underrecoveries of fuel and line loss
                  during such month preceding the month in which the current
                  fuel and line loss percentage is posted; provided, that the
                  percentage shall not exceed the maximum current fuel and line
                  loss percentage and shall not be less than the minimum current
                  fuel and line loss percentage set forth on the Statement of
                  Effective Rates and Charges.

                                                                     (Continued)

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 228
Third Revised Volume No. 1-A

                          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 July 1 and January 1, GTN
                  shall file with the Commission schedules supporting the
                  current fuel and line loss percentages applicable during the
                  six (6) months ending April 30 and October 31, respectively.

      37.3  The Fuel and Line Loss Surcharge Percentage

            (a)   For each six (6) month period beginning July 1 and 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
                  July 1 and January 1 and shall remain in effect for the six
                  (6) month period ending December 31 and June 30, respectively.

            (b)   At least thirty (30) days prior to each July 1 and 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.

            (c)   The fuel and line loss percentage shall be computed by (i)
                  determining GTN's actual fuel and line loss for the six (6)
                  month period ending April 30, if the effective date is July 1,
                  or October 31, if the effective date is January 1, (ii)
                  subtracting the actual quantities retained by GTN during such
                  six (6) month period, and (iii) dividing the result by the
                  estimated quantities of gas to be delivered by GTN for the
                  account of Shippers during the six month period beginning with
                  the effective date of the fuel and line loss surcharge
                  percentage. If the percentage so determined is 0.0001% or
                  less, the fuel and line loss surcharge percentage shall be
                  deemed to be zero.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 229
Third Revised Volume No. 1-A

                          GENERAL TERMS AND CONDITIONS
                                   (Continued)

38.   INCREMENTAL FUEL REALLOCATION MECHANISM

      When at least one incremental fuel surcharge is currently in effect on the
      GTN system under this FERC Gas Tariff, new Shippers, taking either
      long-term firm (LTF) capacity that is available on the GTN system or LTF
      capacity that is permanently released pursuant to Paragraph 28 of these
      General Terms and Conditions, will be subject to the highest incremental
      fuel rate where such fuel rate otherwise applies to expansion Shippers on
      the GTN system. LTF capacity that is available on the GTN system includes,
      but is not limited to: capacity that is subject to the right of first
      refusal process where the existing Shipper has elected to terminate its
      contract pursuant to Paragraph 33.1 of these General Terms and Conditions;
      capacity that is subject to the right of first refusal process where the
      existing Shipper elects not match the highest bid(s) pursuant to Paragraph
      33.2; and capacity that has returned to the pipeline because of Shipper
      default or other contract termination.

      The fuel rate that applies to new LTF Shipper(s) will be determined by the
      following formula, where Incremental Fuel represents the fuel assumption
      (in Dth) supporting the original incremental fuel rate associated with a
      particular expansion project and Incremental Dth-miles represents all
      capacity currently subject to the associated incremental fuel surcharge.

                             Incremental Fuel (Dth)
                -------------------------------------------------
                Incremental Dth-miles + New LTF Shipper Dth-miles

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 230
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

39.   SALES OF EXCESS GAS

      GTN may from time to time purchase or sell gas on an interruptible basis
      at its Stanfield or Kingsgate receipt points as necessary to manage system
      pressure and maintain system integrity Prior to purchasing or selling gas
      pursuant to this section, GTN shall post notice of its intent to purchase
      or sell gas through its EBB. Purchase or sale of gas shall be made on a
      nondiscriminatory basis.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 231
Third Revised Volume No. 1-A

                   TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                   (Continued)

40.   Gas Industry Standards

      In addition to the NAESB standards incorporated within the text of other
      provisions of this FERC Gas Tariff, GTN incorporates by reference the
      following standards. NAESB Standards 1.3.54, 1.3.61, 1.3.63, and 2.3.34
      are Version 1.4. NAESB Datasets 1.4.6, 5.4.1, 5.4.2, 5.4.3, 5.4.4, 5.4.7,
      5.4.8, 5.4.9, 5.4.13, 5.4.14, 5.4.15, 5.4.18, and 5.4.19 are Version 1.5.
      Unless otherwise specified, all other standards listed below are Version
      1.6:

      0.3.1; 1.2.13; 1.2.14; 1.2.15; 1.2.16; 1.2.17; 1.2.18; 1.2.19; 1.3.3;
      1.3.4; 1.3.15; 1.3.17; 1.3.18; 1.3.20; 1.3.21; 1.3.24; 1.3.25; 1.3.26;
      1.3.27; 1.3.28; 1.3.29; 1.3.30; 1.3.31; 1.3.32; 1.3.33; 1.3.34; 1.3.35;
      1.3.36; 1.3.37; 1.3.38; 1.3.39; 1.3.40; 1.3.41; 1.3.42; 1.3.43; 1.3.44;
      1.3.45; 1.3.46; 1.3.47; 1.3.48; 1.3.49; 1.3.50; 1.3.51; 1.3.52; 1.3.53;
      1.3.54; 1.3.55; 1.3.56; 1.3.57; 1.3.58; 1.3.59; 1.3.60; 1.3.61; 1.3.62;
      1.3.63; 1.3.64; 1.3.65; 1.3.66; 1.3.67; 1.3.68; 1.3.69; 1.3.70; 1.3.71;
      1.3.72; 1.3.73; 1.3.74; 1.3.75; 1.3.76; 1.3.77; 1.3.78; 1.3.79; 1.4.1;
      1.4.2; 1.4.3; 1.4.4; 1.4.5; 1.4.6; 1.4.7; 2.1.5; 2.2.2; 2.2.3; 2.3.1;
      2.3.2; 2.3.3; 2.3.4; 2.3.5; 2.3.6; 2.3.8; 2.3.10; 2.3.12; 2.3.13; 2.3.15;
      2.3.16; 2.3.17; 2.3.18; 2.3.19; 2.3.20; 2.3.21; 2.3.22; 2.3.23; 2.3.24;
      2.3.25; 2.3.26; 2.3.27; 2.3.28; 2.3.31; 2.3.32; 2.3.33; 2.3.34; 2.3.35;
      2.3.36; 2.3.37; 2.3.38; 2.3.39; 2.3.40; 2.3.41; 2.3.42; 2.3.43; 2.3.44;
      2.3.45; 2.3.46; 2.3.47; 2.3.48; 2.3.49; 2.3.50; 2.4.1; 2.4.3; 2.4.4;
      2.4.5; 2.4.6; 2.4.7; 2.4.8; 2.4.9; 2.4.10; 2.4.11; 2.4.12; 2.4.13; 2.4.14;
      2.4.15; 2.4.16; 3.3.1; 3.3.2; 3.3.3; 3.3.4; 3.3.5; 3.3.6; 3.3.7; 3.3.8;
      3.3.9; 3.3.10; 3.3.11; 3.3.12; 3.3.13; 3.3.16; 3.3.18; 3.3.19; 3.3.20;
      3.3.21; 3.3.22; 3.3.23; 3.3.24; 3.3.25; 3.3.26; 3.4.1; 3.4.2; 3.4.4;
      4.2.20; 4.3.1; 4.3.2; 4.3.3; 4.3.5; 4.3.6; 4.3.7; 4.3.8; 4.3.9; 4.3.10;
      4.3.11; 4.3.12; 4.3.13; 4.3.14; 4.3.15; 4.3.16; 4.3.17; 4.3.18; 4.3.19;
      4.3.20; 4.3.21; 4.3.22; 4.3.23; 4.3.24; 4.3.25; 4.3.26; 4.3.27; 4.3.28;
      4.3.29; 4.3.30; 4.3.31; 4.3.32; 4.3.33; 4.3.34; 4.3.35; 4.3.36; 4.3.37;
      4.3.38; 4.3.39; 4.3.40; 4.3.41; 4.3.42; 4.3.43; 4.3.44; 4.3.45; 4.3.46;
      4.3.47; 4.3.48; 4.3.49; 4.3.50; 4.3.51; 4.3.52; 4.3.53; 4.3.54; 4.3.55;
      4.3.56; 4.3.57; 4.3.58; 4.3.59; 4.3.60; 4.3.61; 4.3.62; 4.3.63; 4.3.64;
      4.3.65; 4.3.66; 4.3.67; 4.3.68; 4.3.69; 4.3.70; 4.3.71; 4.3.72; 4.3.73;
      4.3.74; 4.3.75; 4.3.76; 4.3.78; 4.3.79; 4.3.80; 4.3.81; 4.3.82; 4.3.83;
      4.3.84; 4.3.85; 4.3.86; 4.3.87; 4.3.88; 5.3.10; 5.3.17; 5.3.18; 5.3.20;
      5.3.21; 5.3.22; 5.3.23; 5.3.24; 5.3.25; 5.3.28; 5.3.29; 5.3.30; 5.3.31;
      5.3.32; 5.3.33; 5.3.34; 5.3.35; 5.3.36; 5.3.37; 5.3.38; 5.3.39; 5.3.40;
      5.3.41; 5.3.42; 5.3.43; 5.3.44; 5.3.45; 5.3.46; 5.3.47; 5.3.48; 5.3.49;
      5.3.50; 5.3.51; 5.3.52; 5.3.53; 5.3.54; 5.3.55; 5.3.56; 5.3.57; 5.3.58;
      5.4.1; 5.4.2; 5.4.3; 5.4.4; 5.4.5; 5.4.6; 5.4.7; 5.4.8; 5.4.9; 5.4.10;
      5.4.12; 5.4.13; 5.4.14; 5.4.15; 5.4.16; 5.4.17; 5.4.18 and 5.4.19.

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

<PAGE>

Gas Transmission Northwest Corporation
FERC Gas Tariff                                           Original Sheet No. 231
Third Revised Volume No. 1-A

                             Reserved For Future Use

Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: October 7, 2003                         Effective on: October 6, 2003

</TEXT>
</DOCUMENT>
