Northern Border Pipeline Company

First Revised Volume No. 1

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

Second Revised Sheet No. 266A Second Revised Sheet No. 266A : Suspended

Superseding: First Revised Sheet No. 266A

GENERAL TERMS AND CONDITIONS

17. RECEIPT AND DELIVERY POINT FLEXIBILITY/SEGMENTATION (Continued)

17.3 Segmentation Rights (Continued)

17.32 Segmentation via Capacity Release (Continued)

Subject to the availability of firm point capacity

on Company's system in the direction of flow

specified in a Releasing or Replacement Shipper's

Transportation Path resulting from a capacity

release, such Shipper shall have the ability to

elevate the scheduling rights from secondary to

primary at one or more Points of Receipt or Delivery

within its Transportation Path up to a total

quantity of gas equal to the Shipper's Total/Agreed

Maximum Receipt Quantity.

Such Shipper may submit a request to Company to

elevate its scheduling rights no later than

1:00 p.m. CCT on the day before nominations are due.

Company shall elevate the secondary capacity rights

to primary capacity scheduling rights to the extent

that firm point capacity exists at the Point(s) of

Receipt or Delivery requested by Replacement or

Releasing Shipper and when no generally available

capacity exists pursuant to Subsection 17.22.

Company shall notify Replacement/Releasing Shipper of

its ability or inability to elevate the scheduling

rights. Such notification shall be made at least one

hour before the timely cycle nominations are due.

The use of segmentation shall not result in an

increase in Shipper's contracted rights.

Company will not permit a Shipper to segment capacity

via the capacity release process when the

Transportation Path segments requested by the Shipper

exceed the Total/Agreed Maximum Receipt Quantity of

the underlying Service Agreement at any pipeline

location, within or outside of its Transportation

Path, or when such request at any Point of Receipt or

Delivery exceeds the Total/Agreed Maximum Receipt

Quantity of the underlying Service Agreement.