Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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

Seventh Revised Sheet No. 350 Seventh Revised Sheet No. 350 : Effective

Superseding: Sixth Revised Sheet No. 350

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

percent of Transporter's GSR Costs, plus appropriate

interest.

39.3.3.1.1 Determination of Reservation Charge

Surcharge(s) - The reservation charge surcharge(s)

shall be determined by dividing the annual principal

amount of the GSR Costs to be recovered through the

reservation charge surcharges, plus carrying charges

in accordance with Section 154.501 of the FERC's

Regulations, by the total annual average Maximum Daily

Delivery Quantity (MDDQ) anticipated to be in effect

for the applicable year of the Total Recovery Period

under Service Agreements with Applicable Firm

Shippers. The reservation charge surcharge(s),

including carrying charges in accordance with Section

154.501 of the FERC's Regulations, shall be set forth

on Sheet No. 15 of this Tariff.

The reservation charge surcharge(s) shall be adjusted

annually to reflect the annual reservation charge

reconciliation described in Subsection 39.3.3.2.

(The rest of this sheet has been intentionally left blank.)