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. 312 Second Revised Sheet No. 312 : Effective

Superseding: Original Sheet No. 312

GENERAL TERMS AND CONDITIONS (Continued)

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

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

total of the adjusted sales MDQ's 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

Nos. 320 and 321 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 as described in Subsection 37.3.2.

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) implementing such fixed monthly surcharge(s)

or 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 37.7.

37.3.2 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 surcharge 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 ended the preceding March 31, and