Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 08/23/2004, Docket: RP04-410-000, Status: Effective

Eighth Revised Sheet No. 250 Eighth Revised Sheet No. 250 : Effective

Superseding: Seventh Revised Sheet No. 250

GENERAL TERMS AND CONDITIONS (Continued)

15. BALANCING AND NOMINATION VARIANCE PROCEDURES (Continued)

from average daily scheduled quantities by more than the greater

of ten (10) percent or two hundred (200) dkt. Point total

variances less than or equal to ten (10) percent or two hundred

(200) dkt, as applicable, shall not be subject to a nomination

variance penalty. For purposes of this subsection, the point

total average daily transportation deliveries and/or receipts

shall be calculated by dividing the point total metered volumes

measured for the month at the applicable receipt and/or delivery

point(s) by the number of days in the month (or applicable portion

thereof) when the variance occurred. Also, for purposes of this

subsection, the point total average daily scheduled quantities

shall be calculated by dividing the point total scheduled

quantities for the receipt and/or delivery point(s) for the month

by the number of days in the month (or the applicable portion

thereof) when the variance occurred.

15.14.4 All variances between point total actual and point

total scheduled quantities at receipt point(s) (whether positive

or negative) and at delivery point(s) (whether positive or

negative) in excess of the greater of ten (10) percent or two

hundred (200) dkt will be charged a penalty rate as the Nomination

Variance Penalty. To the extent that a Shipper's total volumes

under all its service agreements at a particular receipt/delivery

point exceed the ten (10) percent threshold tolerance, such

Shipper(s) shall be assessed a pro rata portion of the applicable

point total Nomination Variance Penalty. Allocation of the

Nomination Variance Penalty among applicable Shipper(s) at each

receipt/delivery point shall be on the basis of the ratio of each

applicable Shipper(s) variance quantity at such receipt/delivery

point to the sum of all applicable Shippers' variance quantities

at such receipt/delivery point. For purposes of this Subsection

15.14, the penalty rate used to derive the Nomination Variance

Penalty will be equal to the maximum Rate Schedule IT-1 commodity

base rate. For purposes of this Subsection 15.14, the maximum

Rate Schedule IT-1 commodity base rate effective at the beginning

of the month the Nomination Variance Penalty is incurred shall be

the penalty rate and shall be treated as a final rate for

Nomination Variance Penalty purposes. The Nomination Variance

Penalty discussed above shall be determined by multiplying the

variance between point total actual and point total scheduled

quantities at the relevant