Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 09/16/2009, Docket: RP09-540-000, Status: Effective

Eighth Revised Sheet No. 283 Eighth Revised Sheet No. 283

Superseding: Seventh Revised Sheet No. 283

GENERAL TERMS AND CONDITIONS

27. RELEASE OF FIRM CAPACITY (Continued)

27.60 Selection of Best Bid (Continued)

27.61 Company's Bid Evaluation Methods

(a) Method A - Present Value of Bids for Capacity

Under Rate Schedule(s) T-1 and T-1B

-n

Present Value per unit = [(R * D ) + (R * D )] * [(1 - (1 + i) )/i]

1 1 2 2

Method A - Present Value of Bids for Capacity

Under Rate Schedule FCS-DP

-n

Present Value = [R ] * [(1 - (1 + i) )/i]

3

Where:

R = Reservation Rate in the Bid per

1 100 Dekatherm-miles - Port of Morgan,

MT (POM) to Ventura, IA.

R = Reservation Rate in the Bid per

2 100 Dekatherm-miles - Ventura, IA to North

Hayden, IN.

R = Reservation Rate in the Bid.

3

D = Distance in miles of that portion (if any)

1 of the Bid distance between POM and

Ventura, IA that lies between the Primary

Receipt Point and Primary Delivery Point

divided by 100.

D = Distance in miles of that portion (if any)

2 of the Bid distance between Ventura, IA

and North Hayden, IN that lies between the

Primary Receipt Point and the Primary

Delivery Point divided by 100.