Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 10/01/2005, Docket: RP05-616-000, Status: Effective

First Revised Sheet No. 265A First Revised Sheet No. 265A : Effective

Superseding: Original Sheet No. 265A

GENERAL TERMS AND CONDITIONS

16. FERC ANNUAL CHARGE ADJUSTMENT PROVISION (Continued)

16.1 (Continued)

This Subsection 16.1 provides for the calculation of an ACA

Charge on a monthly basis. Company shall compute the

Shipper's monthly ACA Charge in the following manner:

1.) Company's total transportation deliveries in Dekatherms

for the Production Month, multiplied by the FERC ACA charge

factor as shown on the Statement of Rates. The result is

Company's total FERC ACA charge for such Production Month.

2.) Company shall calculate each Shipper's ACA Charge for a

Production Month by multiplying the Company's total FERC

ACA charge for such Production Month by a fraction, the

numerator of which is Shipper's actual Dekatherm-miles

transported for such Production Month and the denominator

of which is Company's total Dekatherm-miles for all

transportation rate schedules for such Production Month.

16.2 FERC Annual Charge Adjustment: Such charge shall be that

ACA unit charge amount authorized from time to time by the

FERC for such purposes. The ACA charge shall be effective

on the applicable adjustment date provided in

Subsection 16.3 hereof without suspension, reduction or

refund obligations.

16.3 Adjustment date: The adjustment date under this Section 16

shall be the date permitted by the FERC. On and after the

adjustment date, Company shall, in accordance with the

provisions of this Section 16, increase or decrease the

charge applicable to each affected Rate Schedule so as to

include the approved ACA charge factor that shall be used

to calculate the amount to be collected during the period

preceding the next adjustment date.

16.4 Time and manner of filing and related reports: Company

shall file the initial ACA charge factor and subsequent

changes in such adjustment at least thirty (30) days prior

to the proposed effective date by means of revised tariff

sheet identified on the Statement of Rates. Such filing

shall identify the amount of said adjustment. Such filing

shall be posted as defined by the FERC and shall be served

upon each of Company's affected Shippers served under

Company's Rate Schedules and upon interested State

regulatory agencies.