Northern Natural Gas Company

Fifth Revised Volume No. 1

Effective Date: 01/01/2004, Docket: RP00-404-007, Status: Effective

Original Sheet No. 142E Original Sheet No. 142E : Effective

RATE SCHEDULE PDD

Preferred Deferred Delivery Service

B. In the event that deferred quantities remain in Northern's system

and/or deferred quantities have not been returned to Northern's system

at the termination of any existing PDD Service Agreement Appendices,

Northern and Shipper may mutually agree to an extended time frame

and/or modify the terms of such Agreement. In the event that Shipper

and Northern are unable to come to such agreement, Northern shall

notify Shipper and Shipper shall remove the deferred quantities and/or

return the deferred quantities within the time frame specified in

Northern's notice, which in no instance shall be less than one (1)

calendar day. Any deferred quantities not removed within the time

frame specified by Northern's notice shall become the property of

Northern at no cost to Northern, free and clear of any adverse claims.

In addition, any deferred quantities not returned within the time

frame specified by Northern's notice shall be sold to Shipper at 150%

of the System Average MIP, as defined in Section 32 of this tariff

which may be modified from time to time.

C. In the event deferred quantities are not removed from Northern's system

or are sold to a shipper pursuant to (A) or (B) above, the value of the

gas will be credited to shippers in accordance with Section 57 of the

GENERAL TERMS AND CONDITIONS of this tariff.

10. OTHER CONDITIONS OF SERVICE

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

in the event that all facilities needed to render the requested service do

not exist or are not in service at the time the request is made or the time

service is commenced.

11. GENERAL TERMS AND CONDITIONS

The GENERAL TERMS AND CONDITIONS of this Tariff are hereby incorporated

into and made a part of this Rate Schedule.