Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 05/14/2010, Docket: RP10-602-000, Status: Effective

Third Revised Sheet No. 304 Third Revised Sheet No. 304

Superseding: Second Revised Sheet No. 304

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 such portion of the recovery period that such

buyout/buydown costs had not been expended by Transporter, and

shall tender, as part of an Annual Reconciliation filing, the

throughput surcharge to be assessed commencing the next July 1,

reflecting such recalculations, plus related interest calculated

in accordance with Section 154.501 of the FERC's Regulations. The

adjusted throughput surcharge resulting from the Annual

Reconciliation filing shall be effective on July 1 following the

filing of the Annual Reconciliation. Such surcharge shall be

determined by dividing the next annual principal amount, as

adjusted, plus any adjustment to interest for the prior period(s),

plus applicable future interest, by the effective total throughput

applicable to the next annual period.

36.4 Accounting Procedures for Buyout/Buydown Costs. Transporter

shall maintain separate principal and interest subaccounts in Account

186 to record take-or-pay buyout/buydown costs for each surcharge

recovery mechanism. The principal subaccounts for the fixed monthly

surcharge and/or throughput surcharge will be debited with that portion

of Transporter's applicable take-or-pay buyout/buydown costs elected by

Transporter and permitted to become effective by order(s) of FERC and

for the amount(s) necessary to ensure that Transporter is kept whole

whenever FERC determines that particular services may not be assessed a

specific surcharge. Each month these principal subaccounts shall be

credited with the principal portion of the fixed monthly surcharge, if

any, and an amount determined by applying the principal portion of the

throughput surcharge to the applicable transportation volumetric

determinants underlying Transporter's then effective base rates

contained in Transporter's FERC Gas Tariff, Second Revised Volume No. 1.

The balance is the result of applying the current month's credits as

calculated above against the prior month's balance. The interest

subaccounts will be debited and/or credited monthly, as applicable, for

interest accrued or owed at the current FERC published interest rate,

and credited with the interest portion of the fixed monthly surcharge

and an amount determined by applying the interest portion of the

throughput surcharge to the applicable transportation volumetric

determinants underlying Transporter's