Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2003, Docket: RP00-403-002, Status: Suspended

Original Sheet No. 256A Original Sheet No. 256A : Suspended

GENERAL TERMS AND CONDITIONS

10. NOMINATIONS/CONFIRMATIONS/SCHEDULING/INTERRUPTION OF SERVICE

(Continued)

10.4 Capacity Allocation and Confirmation Process (Continued)

10.42 Allocation of Constrained Backhaul Capability

(Continued)

Pro rata allocation of capacity within

this nomination class, if necessary, will

be based on Shipper's validated

nomination quantity.

10.43 Allocation of Point Capacity

In those instances in which the aggregate net

quantity of all validated nominations exceed

Company's physical capacity to receive gas at a

specific Point of Receipt or deliver gas at a

specific Point of Delivery, Company will allocate

capacity to the validated nominations at the

constrained point location in the following order:

(a) Shipper imbalance.

(b) Quantities nominated in the opposite direction

of the net nominated quantity at the

constrained point location. Such nominations

will be initially allocated capacity given that

they potentially add capacity at the point in

the direction of the constraint.

Nominations within this nomination class will

be prioritized based on the following order:

(i) Primary scheduling rights firm

nominations.

Pro rata allocation of capacity within

this nomination class, if necessary, will

be based on Shipper's primary scheduling

rights at such location.