Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 08/06/1996, Docket: RP96-332-000, Status: Effective

Second Revised Sheet No. 301 Second Revised Sheet No. 301 : Effective

Superseding: Original Sheet No. 301

GENERAL TERMS AND CONDITIONS (Continued)

36. TAKE-OR-PAY BUYOUT AND BUYDOWN COST RECOVERY MECHANISM

(For Filings Submitted to FERC Prior to November 1, 1990) (Continued)

36.3.1 Determination of Fixed Monthly Surcharge - The fixed

monthly surcharge to be recovered hereunder shall

include that percentage of Transporter's applicable

buyout/buydown costs elected by Transporter, plus

appropriate interest. The allocation of these costs to

each Shipper previously served under Transporter's

previously effective Rate Schedules G-1 and SGS-1

contained in Transporter's canceled FERC Gas Tariff,

First Revised Volume No. 1 as of August 31, 1989 shall

be based on a cumulative purchase deficiency method

allocation procedure pursuant to FERC Order No. 500.

Each such Shipper's allocated share of such charges

shall be based upon a comparison of (1) the annual

average of sales made by Transporter or its predecessor

for the calendar years which shall be determined by

Transporter to be the "Deficiency Period" with (2) the

annual average of sales made by Transporter or its

predecessor for the calendar year(s) which Transporter

shall determine to be the "Base Period".

The excess of the annual average figure derived in (2)

of the preceding sentence over the annual average

figure derived in (1) thereof shall be Shipper's

purchase deficiency, and the percentage allocation for

each Shipper shall be based on the proportion of such

Shipper's purchase deficiency to the total of the

purchase deficiencies of all Shippers. The fixed

monthly surcharge, including carrying charges in

accordance with Section 154.501 of the FERC's

Regulations, for each Shipper is set forth on Sheet No.

308 of this FERC Gas Tariff, Second Revised Volume No.

1, for the "First Total Recovery Period." The fixed

monthly surcharge shall be adjusted annually to reflect

the annual fixed surcharge reconciliation described in

Subsection 36.3.2.

Shipper(s) may elect to pay the sum of the fixed

monthly surcharge(s) for the remaining portion of the

total recovery period, excluding future interest, with

the first bill after the effective date of any FERC

Order(s) permitting such fixed monthly surcharge(s) or