Northern Natural Gas Company                                              Tenth Revised Sheet No. 263
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                                Ninth Revised Sheet No. 263

                               GENERAL TERMS AND CONDITIONS

                   scheduled volumes under Interruptible Throughput Service Agreements on the basis
                   of the lowest path rate first.

               2)  Firm Services.  In the event capacity must be allocated on part or all of Northern's
                   system, Firm Throughput Services will be the last category to be curtailed.  Such
                   curtailment shall be allocated on a pro rata basis except as provided in Section 19,
                   "Limitations on Northern's Obligation to Provide Firm Service" of the GENERAL
                   TERMS AND CONDITIONS.

         If Northern is experiencing a shortfall or excess in receipts which affect the operating
         integrity of its system, only until Northern is able to determine the Producer or Shipper
         who has failed to tender volumes equal to the volumes nominated and scheduled, Northern shall
         have the right, after providing as much advance notice as possible, to interrupt deliveries
         concerning the affected area as provided in the Receipt Point Supply Shortfall or Excess
         provisions of Section 19 of the GENERAL TERMS AND CONDITIONS of this Tariff.

         (c)  CARLTON RESOLUTION.  Up to 250,000 MMBtu per day of gas is needed at Northern's
              interconnect with Great Lakes Gas Transmission Company at Carlton, Minnesota (Carlton) in
              order to meet firm Market Area requirements.  The following tariff provisions are
              provided for in the Carlton Stipulation and Agreement of Settlement filed in Docket
              No.  RP96-347 on October 28, 1996 (Settlement) and Docket No. RP01-382.  Northern will
              reappraise the need for the 250,000 MMBtu/Day on an annual basis prior to the
              commencement of the heating season.

              1.  Allocation of Sourcing Requirement at Carlton.   All firm Market Area entitlement
                  existing as of November 1, 1996 with a term in effect through March 31, 1998,
                  excluding Other Carlton Entitlement, entitlement of ANR Pipeline Company (ANR) and
                  firm entitlement associated with the Coal Gasification Plant, currently in effect for
                  the full five (5) months of the heating season (Sourcers) will be required to source
                  volumes at Carlton in the amount shown on Schedule 1 of the Settlement, (and may be
                  reallocated pursuant to Section 2 below).

                  Carlton includes other operationally feasible receipt points that resolve the Carlton
                  situation as determined by Northern may be utilized by Sourcers in place of Carlton.

                  Other Carlton Entitlement, also shown on Schedule 1 of the Settlement, is entitlement
                  held by shippers at Carlton above the current Carlton Resolution amount of 250,000.

                  Any Sourcer may assign its rights (such as compensation) as well as its sourcing
                  obligation to another shipper subject to notification to Northern two (2) work days
                  in advance of such assignment.

              2.  Buyout.  The Parties listed on Appendix B of the Carlton Settlement (Appendix B
                  Parties) may elect to buy out of the sourcing obligation each year. The amount to be
                  paid to buyout shall be equal to $0.083 for the heating season commencing November 1,
                  2001 through March 31, 2002 and $0.19 for each heating season thereafter times their
                  daily sourcing obligation as set forth on Schedule 1, times 151 days for each Heating
                  Season.  The Appendix B Parties buying out of the obligation are required to notify
                  Northern no later than August 1 each year.  Sourcers on Schedule 1 will be updated
                  annually for the limited purpose of reflecting any reallocation as a result of the
                  Appendix B election using the entitlement currently stated on Schedule 1 (Schedule
                  1A).  All dollars collected from Appendix B Parties will be reimbursed on a pro rata
                  basis to the Sourcers and except for Appendix B Parties that have bought out, which
                  will be as shown on Schedule 1A, based on their new Carlton Resolution Obligation as
                  stated on Schedule 1A.

                  ANR is required to pay a buyout amount equal to $0.0062 for the heating season
                  commencing November 1, 2001 through March 31, 2002 and the Carlton Commodity
                  Surcharge thereafter each year times its total contract MDQ of 86,512 MMBtu/Day times
                  151 days for each year that its contract is in effect.  All dollars collected from
                  ANR pursuant to this Section 2 will be reimbursed on a pro rata basis to the Sourcers
                  except as provided in 4.(ii) based on their new Carlton Resolution Obligation as
                  stated on Schedule 1, on or before June 1 of each year.

                  The buyout costs described above will be billed monthly during the heating season to
                  the respective Appendix B Party and ANR.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: March 17, 2010                                                  Effective: April 17, 2010