Northern Natural Gas Company                                              Fifth Revised Sheet No. 266
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                               Fourth Revised Sheet No. 266

                                GENERAL TERMS AND CONDITIONS

             31.  RECEIPT POINT SCHEDULING PENALTIES
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                  If, at month's end, the sum of the actual daily quantities of natural gas received
                  by Northern at all Points of Receipt for each Shipper's Throughput Service
                  Agreement(s) varies from the sum of the quantities scheduled under each throughput
                  service agreement during the respective month for transportation at all Points of
                  Receipt, (either + or -) by greater than ten percent (10%), then Northern shall
                  impose on a non-discriminatory basis a penalty equal to the Market Area TI rate per
                  MMBtu for the difference between the sum of the actual total receipts during the
                  month and the sum of the quantities scheduled for receipt during the respective
                  month, less the tolerance level, except as provided below.  Points in each
                  Shipper's throughput Service Agreement(s) which are on Northern's contiguous
                  mainline system may be aggregated for purposes of determining this penalty.
                  Northern's contiguous mainline system refers to facilities which directly connect
                  to, or are located on, Northern's mainline transmission system.  Any penalty
                  calculated that is less than five hundred dollars ($500) will be waived.

                  Shipper's actual and scheduled volumes, at points connected to Northern's
                  contiguous mainline system, shall be aggregated at the Shipper level prior to
                  determining variance.

                  In order to protect system integrity, Northern may, after giving shippers
                  forty-eight hours notice, implement the penalty on a system level, or a specific
                  mainline Point of Receipt.  For purposes of this Section, "system level" shall mean
                  any combination of two (2) or more compressor stations in the same geographical
                  area.  The monthly penalty will then apply at those designated point(s) for the
                  remainder of the billing month, unless system integrity is no longer in jeopardy.
                  Upon such determination, Northern will so notify Shippers and the penalty shall
                  again apply on a Service Agreement basis from the date of such notice.

                  In the event of Receipt Point Supply Shortfall or Excess situations, as described
                  on Sheet No. 227, a daily receipt point scheduling penalty may apply at each
                  specific receipt point.  The penalty will be $10.00 per MMBtu.  In supply shortfall
                  situations, the penalty will be assessed on the amount that actual receipts are
                  less than scheduled receipts for the day, after a tolerance equal to the greater of
                  50 Mcf or seven percent (7%) of scheduled volumes has been applied.  In supply
                  excess situations, the penalty will be assessed on the amount that actual receipts
                  are greater than scheduled receipts for the day, after a tolerance equal to the
                  greater of 50 Mcf or seven percent (7%) of scheduled volumes has been applied.

                  Northern shall waive such penalty or portion thereof if such penalty was the result
                  of a Force Majeure condition on Northern's system or Northern determines that it
                  incorrectly scheduled the volumes.  A force majeure situation not on Northern's
                  system will not relieve Shipper of scheduling penalties except as set forth below.
                  Written notification to Northern within forty-eight (48) hours (or as promptly as
                  possible) of a verifiable force majeure on an upstream pipeline will result in
                  waiver of the scheduling penalty for those volumes within such forty-eight (48)
                  hour period. Any waiver will be applied on a nondiscriminatory basis.

                  Revenues associated with these penalties shall be credited to Shippers in
                  accordance with Section 57 of the GENERAL TERMS AND CONDITIONS of this Tariff.

                  Receipt point volumes which can be independently verified by Northern (verifiable
                  receipt point volume) will not be subject to the monthly receipt scheduling
                  penalty.

                  In the event a Shipper would be assessed both a receipt point scheduling penalty
                  and DDVC charge for the same scheduling variance from a receipt point to a delivery
                  point, Northern will charge the Shipper the higher of the receipt point scheduling
                  penalty or the DDVC charge, but not both.


 
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: March 17, 2010                                                  Effective: April 17, 2010