Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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

Sixth Revised Sheet No. 351A Sixth Revised Sheet No. 351A : Effective

Superseding: Fifth Revised Sheet No. 351A

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

Rate Schedule FT-1 MDDQ billing quantities underlying

the surcharge, Transporter shall credit an amount to

each of the subsequent annual principal amounts equal

to the difference in Rate Schedule FT-1 MDDQ billing

quantities multiplied by the principal portion of the

currently effective reservation charge surcharge,

divided by the number of years remaining in the Total

Recovery Period, plus applicable interest. In the

event that Transporter's actual Rate Schedule FT-1

MDDQ billing quantities are less than the total Rate

Schedule FT-1 MDDQ billing quantities underlying the

surcharge, Transporter shall debit an amount to each

of the subsequent annual principal amounts equal to

the difference in Rate Schedule FT-1 MDDQ billing

quantities multiplied by the principal portion of the

currently effective reservation charge surcharge,

divided by the number of years remaining in the Total

Recovery Period, plus applicable interest.

Transporter shall tender, as part of an "Annual

Reconciliation" filing, the reservation charge

surcharge to be assessed commencing the next July 1,

reflecting the recalculations provided for in this

Subsection 39.3.3.2, plus related interest calculated

in accordance with Section 154.501 of the FERC's

Regulations.