Northern Border Pipeline Company

First Revised Volume No. 1

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

Third Revised Sheet Number 240 Third Revised Sheet Number 240 : Effective

Superseding: First Revised Sheet Number 240

GENERAL TERMS AND CONDITIONS

6. BILLING AND PAYMENT (Continued)

6.7 Receipt and Tender Deficiencies (Continued)

6.73 Application of Tender and Receipt Deficiencies

(Continued)

Tender Deficiency credits will be applied to IT-1

transportation charges first, followed by Receipt

Deficiency credits, and Tender Deficiency credits

will expire if unused at the end of the next

Production Month after which they were incurred, or

November 30, 2003, whichever is sooner.

The existing Dekatherm-mile balance of Shipper's

Receipt and Tender Deficiencies as of the end of the

month prior to the date on which this tariff sheet

becomes effective, shall be converted to US dollar

credits based on the reservation component of the

transportation rate in effect as of the date the

terms of the Stipulation at Docket No. RP99-322-000,

et al. are placed in effect, for that Rate Schedule

T-1 or T-1R contract. Any billing adjustments due

Northern Border will be deducted from the balance of

Receipt Deficiency credits.

Balances of Receipt and Tender Deficiency credits

will be maintained at a Shipper, or its designated

agent, level.

Effective on November 1, 2003, no new Tender and

Receipt Deficiencies will be granted.

All rights to utilize Tender Deficiency credits

produced through October 31, 2003 will expire

November 30, 2003.

All rights to utilize Receipt Deficiency credits

produced through October 31, 2003 will expire

April 30, 2004.

Northern Border will make a cashout payment of

50 percent of the value of the remaining Receipt

Deficiency credits on April 30, 2004.