Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 02/01/2001, Docket: RP99-322-004, Status: Effective

Fourth Revised Sheet Number 239 Fourth Revised Sheet Number 239 : Effective

Superseding: Second Revised Sheet Number 239

GENERAL TERMS AND CONDITIONS

6. BILLING AND PAYMENT (Continued)

6.7 Receipt and Tender Deficiencies (Continued)

6.72 Tender Deficiencies

If on any day prior to November 1, 2003, in any

Production Month, the quantity of gas tendered by

Shipper, adjusted for mileage, is less than such

quantity of contracted transportation capacity on a

mileage basis, the difference shall be Shipper's

Tender Deficiency quantity for such day and it shall

be used to determine Shipper's Tender Deficiency

credit for such day. Tender Deficiencies arising in

a Production Month shall be converted to a US dollar

credit amount based on the reservation component of

the transportation rate in effect for that T-1 or

T-1R contract on the day incurred.

A Shipper's Rate Schedule T-1 or T-1R Tender

Deficiency credit for a given Gas Day shall be the

product of the Shipper's Tender Deficiency quantity

and the Shipper's daily reservation component of the

transportation rate in effect on such day.

Tender Deficiency credits are transferable upon

notification to Company.

6.73 Application of Tender and Receipt Deficiencies

Tender and Receipt Deficiency credits shall be

discharged only by application to Rate Schedule IT-1

commodity transportation charges for a Shipper, or

its designated agent. A Shipper or its designated

agent have the right to notify Company, by no later

than the close of business on the second business

day of the Billing Month, of its election to defer

the application of all or a portion of its Tender

and Receipt Deficiency credits.