Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/2004, Docket: RP04-205-000, Status: Effective

Original Sheet No. 195 Original Sheet No. 195 : Effective

RATE SCHEDULE TPB

THIRD PARTY BALANCING SERVICE

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

2.2 Character of Service (Continued)

2.24 Predetermined Allocation Methodology

In the event more than one Balancing Provider is

providing balancing service to a Variable Load Point

Customer at the same Variable Load Point, the

operator of that Variable Load Point shall provide

Company with a predetermined allocation method

(agreed to by Variable Load Point Customer and the

Balancing Providers).

2.25 Operational Imbalances

The Balancing Provider shall be responsible for

managing any operational imbalance created under

this Rate Schedule. Daily allocated measured

quantities of natural gas at the various physical

interconnection(s) comprising the Balanced Point

shall be totaled with the total daily allocated

measured quantity at the Variable Load Point to

serve as the aggregated metered quantity for the

Balanced Point for that day. The difference between

the total scheduled quantity at the Balanced Point

for a given day and the corresponding aggregate

metered quantity shall be treated as an operational

imbalance for such Gas Day.

2.26 Responsibility of Balancing Provider

Balancing Provider is responsible for ensuring it

has sufficient quantities of gas scheduled at the

Balanced Point at any point in time during the Gas

Day on Company's system to meet the balancing

requirements under the Agreement.