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. 343 Second Revised Sheet No. 343 : Effective

Superseding: Original Sheet No. 343

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

39.2.3 Gas Supply Realignment Costs - Gas Supply Realignment

Costs shall include payments to Transporter's natural

gas producer/suppliers made in settlement of claims

arising under its gas purchase agreements or to reform

the price, take-or-pay or other clauses of such

agreements or to terminate or suspend such agreements,

payments made to Transporter's natural gas

producer/suppliers pursuant to court order(s) resolving

claims arising under such contracts, claims for breach

of such contracts, or any similar claims.

39.2.4 Stranded Facilities - Stranded facilities shall include

those facilities previously used to provide a bundled

sales service, the costs of which will not be fully

recovered by Transporter after the implementation of

Order Nos. 636, et seq.

39.2.5 Effective Total Interruptible Transportation Throughput

- The total annual transportation throughput under Rate

Schedule IT-1 underlying Transporter's then currently

effective rates.

39.2.6 Carrying Charges - Carrying charges (also hereinafter

referred to as interest) shall reflect the quarterly

interest rate published by the FERC and shall be

computed in accordance with Section 154.501 of the

FERC's Regulations.

39.2.7 Amortized Amounts - The amount of transition costs as

defined above that are subject to amortization and

which have been reflected in a filing(s) submitted to

FERC. Transporter shall reconcile actual costs with

those reflected in rates in accordance with this

Section 39 so as to ensure that Transporter recovers

one hundred percent of such actual costs and does not

overcollect any of such actual costs.

39.3 Applicability of Charges. The charges to be applicable

pursuant to this Section 39 are as follows: