Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 01/16/2008, Docket: RP08-128-000, Status: Effective

Fifth Revised Sheet No. 303 Fifth Revised Sheet No. 303 : Effective

Superseding: Fourth Revised Sheet No. 303

GENERAL TERMS AND CONDITIONS

42. DISCOUNTING (Continued)

42.1 (Continued)

6) to provide that if one rate component which was equal

to or within the applicable Maximum and Minimum Rate

at the time the discount agreement was executed

subsequently exceeds the applicable Maximum Rate or is

below the applicable Minimum Rate due to a change in

Company's Maximum Rates and/or Minimum Rates, so that

such rate component must be adjusted downward

or upward to equal the new applicable Maximum or

Minimum Rate, then other rate components may be

adjusted upward or downward to achieve the agreed-upon

overall rate, so long as none of the resulting rate

components exceed the Maximum Rate or are below the

Minimum Rate applicable to the rate component. Such

changes to rate components shall be applied

prospectively, commencing with the date a Commission

order accepts applicable revised Maximum and Minimum

Rates. However, nothing contained herein shall be

construed to alter a refund obligation under

applicable law for any period during which rates which

had been charged under a discount agreement exceeded

rates which ultimately are found to be just and

reasonable (referred to as rate component rate type);

or

7) based upon published index prices for specific receipt

and/or delivery points or other agreed-upon published

pricing reference points for price determination.

(Such discounted rate may be based upon the

differential between published index prices or arrived

at by formula and shall be referred to as index price

differential rate type.) Each service agreement

entered into pursuant to this Subsection 42.1(7)

1) shall not change the underlying rate design;

2) shall not include any minimum bill or minimum take

provision that has the effect of guaranteeing revenue;

and 3) shall define the rate component to be

discounted (referred to as index price differential

type).