Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 08/01/1998, Docket: RP98-253-000, Status: Effective

First Revised Sheet No. 346 First Revised Sheet No. 346 : Effective

Superseding: Original Sheet No. 346

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

Tariff, Second Revised Volume No. 1, for the applicable

Total Recovery Period. As appropriate, the fixed

monthly surcharge shall be adjusted annually to reflect

the annual reconciliation procedure described in this

Subsection 39.3.1.2.

Applicable Shipper(s) may elect to pay the fixed

monthly surcharge 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 Applicable Shipper of its obligation to pay any

additional fixed monthly surcharge for Account No. 191

related costs resulting from future filings in

accordance with the requirements of Subsection 39.3.1,

to include, but not be limited to, any additional

amounts allocable to Applicable Shipper as a result of

billing adjustments affecting the Account No. 191

balance in accordance with Transporter's Purchased Gas

Cost Adjustment Provision as it existed on the date

terminated.

39.3.1.3 Annual Reconciliation - On or before May 31

of each year, as appropriate, Transporter shall file

with the FERC, as part of an "Annual Reconciliation"

filing, revised tariff sheets showing restated fixed

monthly surcharges to be assessed commencing the next

July 1, to take into account any overcollections or

undercollections of the actual Account No. 191 balance

authorized to be recovered under this Subsection 39.3.1

and actual carrying charges, based on FERC published

interest rates, applied to such actual Account No. 191

underrecovery balance, using the latest