Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

Effective Date: 08/01/1998, Docket: RP98-253-000, Status: Effective

Third Revised Sheet No. 362 Third Revised Sheet No. 362 : Effective

Superseding: Second Revised Sheet No. 362

GENERAL TERMS AND CONDITIONS (Continued)

41. FERC ANNUAL CHARGE ADJUSTMENT PROVISION

41.1 Purpose: Pursuant to Section 3401 of the Omnibus Budget

Reconciliation Act of 1986, the FERC instituted a program of

assessing annual charges to facilitate recovery of FERC costs

incurred each fiscal year. Pursuant to 154.402 of the FERC's

Regulations, Transporter intends to recover the charges assessed

by the FERC through this Annual Charge Adjustment (ACA) provision

and not through an NGA Section 4(e) rate filing. This Section 41

provides for a surcharge applicable to the deliveries of

transported gas made by Transporter (excluding deliveries to

storage as an intermediate delivery point), under the Rate

Schedules identified in Subsection 41.5.

41.2 Applicability: This Section 41 establishes Transporter's

ACA to be assessed Shippers receiving applicable services

rendered under the Rate Schedules identified in Subsection 41.5

hereof. This Section 41 also specifies the procedures to be

utilized in changing the ACA under each such applicable Rate

Schedule in order to reflect a change in the FERC authorized ACA

unit surcharge.

41.3 The Annual Charge Adjustment: The rates charged under

each of the Rate Schedules applicable hereunder as identified in

Subsection 41.5 hereof shall be surcharged for the ACA. Such

surcharge shall be that ACA unit charge amount authorized from

time to time by the FERC for such purposes. The ACA surcharge

shall be effective on the applicable adjustment date provided in

Subsection 41.4 hereof without suspension, reduction or refund

obligations.

41.4 Adjustment date: The adjustment date under this Section

41 shall be the date permitted by the FERC. On and after the

adjustment date, Transporter shall, in accordance with the

provisions of this Section 41, increase or decrease the surcharge

applicable to each affected Rate Schedule so as to include the

approved ACA to be collected during the period preceding the next

adjustment date.