Northern Natural Gas Company

Original Volume No. 2

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Effective Date: 12/13/1992, Docket: RP91-181-005, Status: Effective

Second Revised Sheet No. 1I.2A Second Revised Sheet No. 1I.2A : Effective

Superseding: First Revised Sheet No. 1I.2a

GENERAL TERMS AND CONDITIONS

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(b) Commodity Amount. The ratio of the annual average actual firm

sales volume for the customer for the previous three (3) years

prior to termination or suspension or from July 1, 1991,

whichever is sooner to the total annual average actual firm

sales volume for the previous three (3) years prior to

termination or suspension or from July 1, 1991, whichever is

sooner. This ratio will then be applied to the Account 191

commodity subaccount, to determine the total commodity invoice

or refund amount owed per Section 1.6

(3) Within thirty (30) days after the conclusion of the six-month

period, Northern shall issue an invoice for any amounts due or shall

issue a check for any amounts owed, except as provided in 1.6(a)(1)

above.

1.7 Account No. 191 Exit Fee

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An exit fee will be assessed to any abandonment of firm sales entitlement as a

result of termination, reduction or conversion. Such exit fee shall be based

on the customer's percent of reduction applied to the balance accumulated from

July 1, 1991 forward in each 191 subaccount, to be determined as follows:

(1) The balance in each subaccount shall consist of the cumulative current

period balance accumulated from July 1, 1991 forward for the demand

portion and the commodity portion of the PGA Account 191 balances as of

the month-end when the customer's termination, reduction or conversion is

effective. Such 191 subaccounts shall not be adjusted by any prior period

surcharge/refund amounts. The month-end Account 191 balances shall be

determined no later than a six-month period following termination,

reduction or conversion, taking into account any billing adjustments and

other amounts which are known and measurable. However, if Northern

receives a refund, as defined in Section 6(e)(1)(iv) of Subpart B of the

General Terms and Conditions of Northern's Volume No. 1 Tariff, which is

related to the period prior to the date of suspension or termination of

the PGA, related to the cost of servicing customers, such refund will be

flowed through to the customer regardless of when Northern receives such

refund.

(2) Each reducing customer's share of the Account 191 balance shall be equal

to the sum of the demand and commodity amounts, calculated as follows:

(a) Demand Amount. The ratio of the annual firm sales entitlement

abandoned for that customer, to the total annual average firm sales

entitlement for all customers for the year prior to termination,

reduction or conversion. This ratio will then be applied to the

Account 191 demand subaccount, to determine the demand exit fee

amount owed or to be refunded.

(b) Commodity Amount. The ratio of the sales commodity abandoned

(daily entitlement multiplied by the number of days in effect during

the year) for that customer, not to exceed the prior year's total

firm sales quantity, to the total annual average actual firm sales

volume for all customers for the year prior to termination reduction

or conversion. This ratio will then be applied to the Account 191

commodity subaccount to determine the commodity exit fee amount owed

or to be refunded.

(3) No later than thirty (30) days after the conclusion of the six-month

period, Northern shall issue an invoice for any amounts due or shall

issue a check for any amounts owed, except as provided in 1.7(1)

above.