Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-392-001, Status: Effective

Substitute Fifth Revised Sheet No. 268B Substitute Fifth Revised Sheet No. 268B : Effective

Superseding: Fourth Revised Sheet No. 268B

GENERAL TERMS AND CONDITIONS

23. FLOWING GAS (Continued)

23.2 Allocation Statements

The determination of the entitlement rights for each

particular party of the actual flowing gas moving across

any location is accomplished by allocating the actual flow

among the parties. Allocations are performed by the

operator of the affected location, using the pre-determined

allocation method agreed to by the parties involved. The

allocation statement is used to communicate the allocation

information to the parties involved.

Company shall support daily allocations.

The list of allocation methodology types agreed upon:

Ranked, Pro Rata, Percentage, Swing, and Operator Provided

Value. [2.3.16]

The types of allocation methodologies is a list from which

two parties may agree. If the two parties cannot agree

upon an allocation methodology, pro rata based upon

confirmed nominations shall be used as the default method.

The party responsible for custody transfer (the party

performing the measurement function) shall provide the

allocation. [2.3.18]