Northern Border Pipeline Company

First Revised Volume No. 1

Effective Date: 09/11/2006, Docket: RP06-434-000, Status: Effective

Fourth Revised Sheet No. 302 Fourth Revised Sheet No. 302 : Effective

Superseding: Third Revised Sheet No. 302

GENERAL TERMS AND CONDITIONS

42. DISCOUNTING

42.1 From time to time Shipper or Buyer and Company may agree in

writing on a level of discount of the otherwise applicable

rates and charges in addition to a basic discount from the

stated Maximum Rates.

In all circumstances the discount provided shall not change

the underlying rate design and the resulting discounted

rate shall be between the Maximum Rate and the Minimum Rate

applicable to the service provided.

For example, Company may provide a specific discounted

rate:

1) to certain specified quantities under the Agreement

(referred to as quantity rate type); or

2) if specified quantity levels are actually achieved or

with respect to quantities above or below a specified

level (referred to as quantity level rate type; or

3) during specified time periods (referred to as time

period rate type or contract rate type); or

4) to points of receipt (referred to as point rate type),

points of delivery (referred to as point rate type,

transportation paths (referred to as point to point

rate type) or defined geographical areas (referred to

as zone rate type); or

5) in a specified relationship to the quantities actually

transported (i.e., that the rates shall be adjusted in

a specified relationship to quantities actually

transported) (referred to as relationship rate type);