Northern Natural Gas Company

Fifth Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 8-004, Status: Effective

Original Sheet No. 235 Original Sheet No. 235 : Effective

GENERAL TERMS AND CONDITIONS

2. TCR Volumetric Surcharge: The TCR Volumetric Surcharge shall be charged to all sales

and transportation volumes under all Northern's Sales and Transportation Rate

Schedules or successors thereto as contained in Northern's Volume No. 1 Tariff.

Northern may, in accordance with any applicable Commission Regulation, discount the

TCR Surcharge for transportation services. Any such discount will be offered on a

nondiscriminatory basis and subject to Commission Order 497.

3. TCR Demand Surcharge: The TCR Demand Surcharge shall be charged to the monthly

entitlement quantities of Northern's firm customers, as defined in Section 21.B.5.

4. Total Annual Billing Units: the Total Annual Billing Units include the sum of the

following entitlement units associated with Northern's traditional (i.e., pre open

access) firm sales customers:

(i) Annual firm sales entitlements; and

(ii) Annual firm transportation entitlements resulting from conversion of firm

sales entitlements.

Specifically, the total annual billing units are set forth by customer on Appendix B

of the Stipulation and Agreement of Settlement, Docket No. RP91-40-002. For purposes

of the TCR mechanism, as it pertains to GS customers, the annual billing units are

the units associated with the entitlement which existed prior to the inception of the

GS Rate Schedule as adjusted under the terms of the IGIC and GS settlements.

5. Monthly Entitlement Quantity: The monthly entitlement quantity is that quantity of

entitlement in effect during a specific month. The sum of the monthly entitlement

quantities over a one-year period equals the Total Annual Billing Units, as defined

in Section 21.B.4. above.

6. Amortization Period: The amortization period for the TCR Volumetric and Demand

Surcharges shall be a period of five (5) years from the effectuation date of June 1,

1991, through May 31, 1996.