Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 07/09/2007, Docket: RP07-483-000, Status: Effective

Fourth Revised Sheet No. 142A Fourth Revised Sheet No. 142A : Effective

Superseding: Third Revised Sheet No. 142A

RATE SCHEDULE PDD

Preferred Deferred Delivery Service

1. AVAILABILITY

This Rate Schedule is available to any Shipper for Preferred Interruptible

Deferred Delivery Service (PDD) on a not unduly-discriminatory basis:

(1) subject to Northern's availability to provide the service; and

(2) provided the service requested sets forth the specific receipt and

delivery terms and months in an Appendix A to the PDD Service Agreement;

(3) at the sole discretion of Northern when Shipper and Northern have

executed a PDD Service Agreement in the form contained in Northern's FERC

Gas Tariff ("Tariff").

Northern shall not be required to provide service under this Rate Schedule

that would require Northern to construct or acquire any new facilities or

would prevent Northern from providing any other firm service.

2. APPLICABILITY AND CHARACTER OF SERVICE

Service under this Rate Schedule shall be provided on an interruptible

basis as follows:

PDD is a preferred interruptible service which provides for: (a) the

agreement by Shipper and Northern of the specified months of service and

specific receipt and delivery terms specified in an Appendix A; (b) the

receipt or delivery by Northern of gas quantities that have been delivered

by Shipper to the Deferred Delivery point(s) designated in an Appendix A of

an executed PDD Service Agreement between Shipper and Northern;

(c) Northern holding or being owed the deferred gas quantities at such Deferred

Delivery point(s); and (d) the return of the gas quantities to Northern or

the Shipper at mutually agreed upon Deferred Delivery point(s) subject to

Section 5 of this Rate Schedule. Northern shall defer quantities of gas

for the Shipper up to the maximum total quantity as specified in the

Appendix of an executed PDD Service Agreement.

Service under this Rate Schedule shall be provided for a minimum of one (1)

day and a maximum term as established by the mutual agreement of Shipper

and Northern. The terms of each PDD Service Agreement Appendix shall be

attached to the executed PDD Service Agreement between Shipper and

Northern.

In the event that a PDD transaction is terminated prior to its expiration or the contract

total quantity is reduced thereunder, Northern may, on a not unduly discriminatory basis,

agree with the Shipper on a termination fee. The termination fee shall take into account

the remaining value of the transaction's service parameters.

Service under this Rate Schedule shall be subject to interruption under the terms of the

upstream or downstream Firm or Interruptible Throughput Service Agreement with Northern.

Any limitations imposed by such Throughput Service Agreement shall have precedence over

Shipper's rights to service herein.

To the extent allowed by the PDD transaction terms of the Shippers' PDD accounts, Shippers

may, upon advising Northern, transfer its account balances (1) among different Shippers'

PDD Accounts, and/or, (2) between its own PDD accounts with no additional injection or

withdrawal fees, and no transportation fees provided that the Shippers' accounts are held

at the same Storage point. Transfer of account balances between Storage points, either on

one account or between multiple accounts, shall not be charged injection or withdrawal

fees but will be charged the applicable transportation fees.