Northern Border Pipeline Company

First Revised Volume No. 1

Effective Date: 09/01/2003, Docket: RP03-554-000, Status: Effective

Fourth Revised Sheet No. 123 Fourth Revised Sheet No. 123 : Effective

Superseding: Third Revised Sheet No. 123

RATE SCHEDULE T-1

FIRM SERVICE

5. RIGHT OF FIRST REFUSAL (Continued)

5.2 Posting/Bid Procedures (Continued)

5.23 Selection of Best Bid (Continued)

five days after the Bid Close Date of the Best

Bid(s) or if no acceptable Bids were received.

(d) In order for a Shipper to retain its capacity,

Shipper shall notify Company in writing within

twenty (20) business days that Shipper elects

to match the contract term(s) and rate(s)

contained in the Best Bid for all or a portion

of the capacity. If the Best Bid contains a

Negotiated Rate, Shipper may retain certain

capacity by choosing one of the options for

rate pursuant to Subsection 38.23 of the

General Terms and Conditions.

(e) In the event there is capacity remaining after

Shipper's election in Subsection 5.23(d), the

Person(s) submitting the Best Bid(s) will be

notified within one business day following

receipt of Shipper's notice to Company except

as noted in Subsection 5.22(c).

(f) In the event there is capacity remaining after

Shipper's election in Subsection 5.23(d) and

there is more than one Best Bid, the firm

capacity shall be allocated in the sequence

which they are drawn from a bowl in which all

the names of the potential shippers submitting

a Best Bid are placed. Names will continue to

be drawn until all the firm capacity has been

allocated. The drawing will be conducted by a

separate impartial entity not affiliated with

Company and will be completed within two

business days of the Bid Closing Date.