Northern Border Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 260D.01 Original Sheet No. 260D.01 : Superseded

GENERAL TERMS AND CONDITIONS

10. NOMINATIONS/CONFIRMATIONS/SCHEDULING/INTERRUPTION OF SERVICE

(Continued)

10.6 Interruption of Service (Continued)

10.63 Service Reduction Due to an Operational Flow Order

(Continued)

(ii) Net penalty revenue will be credited to

all 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.

(i) Liability of Company

Company shall not be liable for any costs

incurred by Shipper in complying with an OFO.

Company shall not be responsible for any damages

that result from any interruption in Shipper's

service that is a result of a Shipper's failure

to comply promptly and fully with an OFO, and

the noncomplying Shipper shall indemnify Company

against any claims of responsibility. However,

Company shall use reasonable efforts to minimize

any such costs or damages, and nothing herein

shall exempt Company from liability in the event

of Company's negligence or willful misconduct.