Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 07/10/2004, Docket: RP04-331-000, Status: Effective

Sixth Revised Sheet No. 349 Sixth Revised Sheet No. 349 : Effective

Superseding: Fifth Revised Sheet No. 349

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

Shipper is relieved of its obligation to pay its otherwise

applicable fixed monthly surcharge by a FERC or court order.

39.3.1.6 Payment - Transporter shall include the

applicable surcharge to Applicable Shipper pursuant to this

Section 39.3.1 in the monthly billing statements rendered to

Applicable Shippers pursuant to the Billings and Payments

provisions of the General Terms and Conditions of this

Tariff.

39.3.2 Determination of Stranded Facilities Cost Surcharge:

Transporter is authorized by Order Nos. 636, et seq., to recover

costs associated with stranded facilities. Transporter will

develop a mechanism at a later date to recover any such stranded

facility costs.

39.3.3 Determination of Gas Supply Realignment Cost Charges

(For Filings Submitted to FERC Prior to August 26, 1997) -

Shippers served under Transporter's Rate Schedule FT-1 contained

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

(Applicable Firm Shippers), shall be responsible for paying

Transporter for ninety (90) percent of the Gas Supply Realignment

Transition Costs (GSR Costs) incurred by Transporter as a result

of implementing Order No. 636, et seq., plus appropriate interest,

through a reservation charge surcharge(s) developed pursuant to

this Subsection 39.3.3. The applicable reservation charge

surcharge(s) shall be applied to each Maximum Daily Delivery

Quantity (MDDQ) billing quantity under Rate Schedule FT-1 for each

month such Applicable Firm Shipper's Service Agreement is in

effect.

The remaining ten (10) percent of the GSR Costs incurred by

Transporter, plus appropriate interest, will be recovered through

inclusion in the cost of service applicable to interruptible

transportation Shippers served under Transporter's Rate Schedule

IT-1 contained in this Tariff (Applicable Interruptible Shippers).