Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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

First Revised Sheet No. 314 First Revised Sheet No. 314 : Effective

Superseding: Original Sheet No. 314

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)

service for any Shipper receiving service pursuant to Part 284 of

the FERC's Regulations from Transporter under its FERC Gas Tariff,

Second Revised Volume No. 1. Such discounting, however, shall be

in accordance with Section 284.7(d)(5) of the FERC's Regulations.

The maximum throughput surcharge shall be stated on Sheet Nos. 15,

18, and 21 of Transporter's FERC Gas Tariff, Second Revised Volume

No. 1. The minimum rate for each such throughput surcharge is

zero.

37.3.4 Annual Throughput Surcharge Reconciliation - This

provision provides a true-up mechanism to ensure that Transporter

neither overrecovers nor underrecovers the costs included in the

throughput surcharge. On or before May 31 of each year,

commencing on May 31, 1991, Transporter shall recalculate the

throughput surcharge to reflect revisions for the actual FERC

published interest rates during the recovery period ending the

preceding March 31 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.

Additionally, Transporter shall calculate revisions to the

throughput surcharge to true-up differences between the actual

level of applicable transportation throughput experienced during

the recovery period ending the preceding March 31 and the total

throughput underlying the throughput surcharge actually billed

during that same recovery period. More specifically, in the event

that Transporter's actual applicable transportation throughput is

greater than the total throughput underlying the surcharge,

Transporter shall credit an amount to each of the subsequent

annual principal amounts equal to the difference in throughput

multiplied by the principal portion of the currently effective

throughput surcharge, divided by the number of years remaining in

the total recovery period, plus applicable interest. In the event

that Transporter's actual applicable