Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 02/01/2000, Docket: RP00-165-000, Status: Effective

Seventh Revised Sheet No. 358A Seventh Revised Sheet No. 358A : Effective

Superseding: Sixth Revised Sheet No. 358A

GENERAL TERMS AND CONDITIONS (Continued)

39. TRANSITION COST RECOVERY MECHANISMS (Continued)

39.3.4.1 Determination of Reservation Charge

Surcharges. The reservation charge surcharge(s) to be

recovered hereunder shall include the applicable firm

portion of Transporter's GSR Costs as developed

pursuant to Subsection 39.3.4, plus appropriate

interest.

39.3.4.1.1 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 surcharge(s), plus

carrying charges in accordance with Section

154.501 of the FERC's Regulations, by the total

annual average 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 39.3.4.2.

39.3.4.2 Annual Reservation Charge Surcharge

Reconciliation - This provision provides a true-up

mechanism to ensure that Transporter neither

overrecovers nor underrecovers the costs included in

the reservation charge surcharges. On or before May 31

of each year, Transporter shall recalculate the

reservation charge surcharges to take into account

revisions for the actual FERC published interest rates

during the recovery period ending the preceding March

31 applied to the firm portion of the actual GSR Costs

paid by Transporter, reduced, as applicable, to reflect

interest owed by Transporter to Applicable Firm

Shippers on GSR Costs collected from Applicable Firm

Shippers during such portion of the recovery period

that such GSR Costs had not been expended by