Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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

Seventh Revised Sheet No. 351 Seventh Revised Sheet No. 351 : Effective

Superseding: Sixth Revised Sheet No. 351

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

surcharges to true-up differences between the actual level

of Applicable Firm Shippers' billing quantities experienced

during the recovery period ended the preceding March 31 and

the total Applicable Firm Shippers' billing quantities

underlying the reservation charge surcharges billed during

that same recovery period.

Once a recovery period has been trued-up in an annual

reconciliation filing to include actual billing quantities,

the applicable reservation charge surcharges for that same

recovery period shall not be subject to further revision for

a change in those billing quantities.

Transporter shall bill the reservation charge surcharges

applicable to each Total Recovery Period through the end of

that Total Recovery Period, and thereafter refund any

overcollections or bill for any undercollections of the

reservation charge surcharges with interest calculated in

accordance with Section 154.501 of the FERC's Regulations.

Each Applicable Firm Shipper's share of such refunds or

additional billings shall be its pro rata proportion of the

total amount overcollected or undercollected, as applicable,

based on the ratio of that Applicable Firm Shipper's MDDQ

quantities during the last year of the Total Recovery Period

to the total of the Applicable Firm Shippers' MDDQ

quantities during that same period.

39.3.3.2.1 Annual Reservation Charge Surcharge

Reconciliation - In the event Transporter's actual

Rate Schedule FT-1 MDDQ billing quantities are greater

than the