Northern Natural Gas Company                                              Tenth Revised Sheet No. 258
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                                Ninth Revised Sheet No. 258

                                      GENERAL TERMS AND CONDITIONS

                   All nominations for service, including firm overrun, will be required to be
                   electronically nominated by path, i.e.  specific receipt point to specific
                   delivery point, provided that for nomination purposes, a Point of Delivery
                   in the Market Area or Argus Zone in the Field Area may be a currently
                   established Operational Zone, applicable to deliveries to the facilities of a
                   single LDC.  For Shipper(s) with combined service for both Market Area and
                   Field Area, nominations from the Field Area to the Market Area (or vice
                   versa) must include a nomination to and from the NNG Field/MKT Demarcation
                   (POI 37654).  Northern will accept facsimile nominations in the event of a
                   failure of electronic nomination communication equipment.  Overrun quantities
                   shall be nominated as a separate transaction.  All nominations must include
                   shipper-defined begin dates and end dates.  Additionally, the upstream and/or
                   downstream contract information and rankings must be provided for a
                   nomination to be valid.

                   The receiver of a nomination initiates the confirmation process.  The party
                   that would receive a Request for Confirmation or an unsolicited Confirmation
                   Response may waive the obligation of the sender to send.

                   Northern may accept "standing nominations," excluding intra-day nominations,
                   for the then existing term of the Service Agreement.  The term "standing
                   nominations" shall mean a nomination of a specific volume to remain in effect
                   until the earlier of:

                    i)  the requested ending date of such nomination; or

                   ii)  a request by Shipper to change such nomination;

                   provided however, the term of the nomination is within the term of the
                   Service Agreement.

                   Auto-balancing is where a Shipper may request Northern to automatically
                   schedule volumes into or out of storage on behalf of the Shipper at such
                   times when a Shipper is allocated at a supply/market point as long as the
                   Shipper currently holds an FDD/IDD service agreement and as long as the
                   scheduled volume is within the storage parameters.  To the extent imbalances
                   or receipt and delivery point variances occur, Shipper shall be responsible
                   for any applicable charges.  To request this service, Shipper shall submit an
                   executed Storage Balancing Option form located on Northern's website.

                   With respect to the timely nomination/confirmation process at a receipt or
                   delivery point, in the absence of agreement to the contrary, the lesser of
                   the confirmation quantities should be the confirmed quantity.  If there is no
                   response to a Request for Confirmation or an unsolicited Confirmation
                   Response, the lesser of the confirmation quantity or the previously scheduled
                   quantity should be the new confirmed quantity.

                   With respect to the processing of requests for increases during the intraday
                   nominations/confirmation process, in the absence of agreement to the
                   contrary, the lesser of the confirmation quantities should be the new
                   confirmed quantity.  If there is no response to a Request For Confirmation or
                   an unsolicited Confirmation Response, the previously scheduled quantity
                   should be the new confirmed quantity.

                   With respect to the processing of requests for decreases during the intraday
                   nomination/confirmation process, in the absence of agreement to the contrary,
                   the lesser of the confirmation quantities should be the new confirmed
                   quantity, but in any event no less than the elapsed-prorated-scheduled
                   quantity.  If there is no response to a Request For Confirmation or an
                   unsolicited Confirmation Response, the greater of the confirmation quantity
                   or the elapsed-prorated-scheduled quantity should be the new confirmed
                   quantity.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: August 31, 2007                                                Effective: October 1, 2007