Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 08/06/1996, Docket: RP96-332-000, Status: Effective

Second Revised Sheet No. 353 Second Revised Sheet No. 353 : Effective

Superseding: 2nd Substitute Original Sheet No. 353

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

to be recovered through the base rates, plus

carrying charges in accordance with Section

154.501 of the FERC's Regulations, by the

effective total interruptible transportation

throughput. Such base rate GSR unit costs

will be included in the interruptible

transportation base rates specified on Sheet

No. 18 of this Tariff. Such base rate GSR

unit costs will be in effect until adjusted in

accordance with Subsection 39.3.3.4, and/or

until the effective total interruptible

transportation throughput is modified by

Transporter through a filing with FERC. The

base rate GSR unit costs shall be assessed to

all Shippers with Service Agreements under

Rate Schedule IT-1 contained in this Tariff.

Transporter may from time to time, and at any

time, selectively and separately discount any

or all of the base rate GSR unit costs for any

Applicable Interruptible Shipper. Such

discounting, however, shall be in accordance

with Section 284.7(d)(5) of the FERC's

Regulations. The maximum base rate GSR unit

cost shall be included in the interruptible

transportation base rates shown on Sheet No.

18 of this Tariff. The minimum rate for such

base rate GSR unit cost is zero.

39.3.3.4 Annual Rate Schedule IT-1 Base Rate GSR Unit

Cost Reconciliation - This provision provides

a true-up mechanism to ensure that Transporter

neither overrecovers nor underrecovers the

costs included in the base rate GSR unit cost.

On or before May 31 of each year, Transporter

shall recalculate the base rate GSR unit cost

to reflect revisions for the actual FERC

published interest rates during the recovery

period ending the preceding March 31 applied

to the unamortized balance of ten (10) percent

of the actual GSR Costs paid by Transporter,

reduced, as applicable, to reflect interest

owed by Transporter to Applicable

Interruptible Shippers on GSR Costs collected