Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 08/28/2006, Docket: RP06-448-000, Status: Effective

Fourth Revised Sheet No. 191 Fourth Revised Sheet No. 191 : Effective

Superseding: Third Revised Sheet No. 191

RATE SCHEDULE PAL

PARK AND LOAN SERVICE

6. FAILURE BY BUYER TO RESPOND (Continued)

6.2 Loan Service (Continued)

(ii) Company's prevailing operations require Company

to notify Buyer that all or part of Buyer's

loaned quantities must be returned to Company,

and Buyer fails to comply within the specified

time frame; and/or

(iii) Subject to Subsection 2.4 herein, the PAL

account reflects a balance at the termination

date of the associated Exhibit A to an executed

PAL Agreement.

(b) If, pursuant to Subsection 6.2(a)(i), Company notifies

Buyer that deliveries of Buyer's loaned quantities must

be suspended or be reduced, only those quantities

loaned in violation of the notification shall be sold

to Buyer at 150% of the actual price.

(c) Proceeds resulting from Subsection 6.2(a)(i), (ii), and

(iii), net of costs, shall be credited to all Shippers

except for the offending Shipper. Net penalty revenue

will be credited to Shippers in the Billing Month

corresponding to the Production Month in which the

penalty was incurred. Such credit shall be allocated

on the basis of the Dekatherm-miles transported for the

Production Month in which the penalty occurred

excluding the Dekatherm-miles of the offending

Shipper(s). The credit shall be revenue net of actual

costs.

(d) No penalty will be assessed, pursuant to this

Subsection, on a remaining balance if the

Buyer-submitted nominations related to that balance to

clear the PAL transaction cannot be scheduled by the

Company, through no fault of the Buyer.