Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 12/31/9999, Docket: CP08-89-001, Status: Accepted

Eighth Revised Sheet No. 358A Eighth Revised Sheet No. 358A

Superseding: Seventh 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 Nos. 15 or 16, as applicable, 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