Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 13-004, Status: Effective

Original Sheet No. 302 Original Sheet No. 302 : Effective

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)

during any subsequent month during the total recovery

period. Such lump sum payment shall not relieve

Shipper of its obligation to pay any additional fixed

monthly surcharges for buyout/buydown costs resulting

from future filings, including, but not limited to, any

additional amounts allocable to such Shipper as a

result of a prudence hearing as described in Subsection

36.7.

36.3.2 Annual Fixed Surcharge Reconciliation - On or before

May 31 of each year, commencing on May 31, 1991,

Transporter shall file with the FERC, as part of an

"Annual Reconciliation" filing, revised tariff sheets

showing the restated fixed monthly surcharges to be

assessed commencing the next July 1, to take into

account any overcollections or undercollections related

to actual carrying charges, based on FERC published

interest rates applied to actual buyout/buydown

payments made by Transporter, reduced, as applicable,

to reflect interest owed by Transporter to Shipper(s)

on buyout/buydown costs collected from Shipper(s)

during such portion of the recovery period that such

buyout/buydown costs had not been expended by

Transporter, using the latest available actual data for

the recovery period ending the preceding March 31, and

adjust the fixed monthly surcharge to take into account

any overcollections or undercollections related to such

recalculations. The adjusted fixed monthly surcharge

resulting from the Annual Reconciliation filing shall

be effective on July 1 following the filing of the

Annual Reconciliation. Such adjusted fixed monthly

surcharge shall be determined by dividing the adjusted

unamortized buyout/buydown costs to be recovered

through the monthly fixed surcharges, plus the adjusted

interest, by the number of months remaining in the

total recovery period and adding thereto carrying

charges for the next twelve (12) months.

At the completion of the total recovery period,

Transporter shall bill or return to Shipper(s),

including interest, any undercollections or

overcollections under Subsection 36.3.1.