NORTHERN NATURAL GAS COMPANY                                              Third Revised Sheet No. 283
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                               Second Revised Sheet No. 283

                                   GENERAL TERMS AND CONDITIONS


     (b)  Processing Plants (Shippers without Processing Agreements - Strangers' Gas).  To the
          extent no party has elected to retain the right to process gas it tendered to Northern,
          or a party elects to retain the right to process but has no agreement for processing at a
          processing plant, Northern may have such gas (strangers' gas) processed by a processing
          plant for the purpose of removing any plant products.  In such event, Northern will
          credit revenues it receives from products that are extracted from the Shippers' gas by
          any processing plant with whom Northern has an arrangement for such extraction.

          Northern shall place all such revenues in a processing account and shall distribute the
          revenues as follows:  First, if prior to the beginning of each month, a party notifies
          Northern that it is claiming the right to process the volumes to be transported pursuant
          to a throughput service agreement that actually flow through the processing plant but for
          which the party does not have a processing arrangement with the processing plant,
          Northern will allocate the revenue received from the processing plant first to all
          notifying parties on a pro rata GPM basis.  The notification will be made to Northern via
          the nomination process and will include an affidavit.

          Second, the remainder of the revenues, after the revenues are allocated to the parties
          pursuant to the above paragraph, will be credited to the Field Area transportation
          commodity rates.  Northern will file to reduce the Field Area transportation commodity
          rate for any accumulated revenues received from processing related to Strangers' gas when
          the annual total would result in the reduction of the currently effective Field Area
          commodity rates.

          Prior to any allocation of revenue received from the processing plant, Northern will be
          reimbursed from such revenue each month an amount to cover the increased administrative
          costs associated with the allocation of the revenues.

          In the event Northern is held liable for any revenues which have been allocated and
          distributed to any party in addition to any other remedy it may have, Northern shall have
          the right to reduce the amount of revenues to be distributed pursuant to the Field Area
          transportation commodity rate crediting methodology set forth above for future months by
          the amount paid by Northern for such liability including attorneys' fee and court costs.

          Under each option set forth in (a) and (b) above, upon Northern's request, Shipper or its
          designee shall provide to Northern the GPM content of the gas tendered to Northern by
          Shipper or its designee at the Points of Receipt under Shipper's Service Agreement or
          information which Northern deems sufficient to calculate the theoretical GPM content of
          such gas for allocation purposes.  Northern shall have the right to use reasonable means
          to ensure the accuracy of the information provided by Shipper or its designee.  Also,
          under the option set forth in (a) above, Shipper or its designee may elect to replace PVR
          at the tailgate of the processing plants through Btu replacement or elect to nominate gas
          under Shipper's Service Agreement from Receipt Points to the inlet of the processing
          plant and separately nominate residue gas from the tailgate of the processing plant to
          the Delivery Points.  Interruptible Throughput Agreements which provide for the
          transportation of PVR replacement quantities shall be accorded the same interruptible
          nomination and scheduling priority as the underlying interruptible throughput agreement
          associated with the volumes to be processed.  However, if the PVR was transported to the
          plant via a firm throughput agreement then the PVR replacement volume to be transported
          pursuant to an interruptible agreement will be scheduled after all firm volumes but prior
          to other interruptible volumes.  In the event Shipper or its designee elects to replace
          PVR through Btu replacement, Shipper or its designee shall be responsible for any charges
          on Northern's system incurred to transport the replacement volumes to the tailgate of
          the processing plant.  Also, upon Northern's request, Shipper or its designee shall cause
          the processing plant, whether or not Shipper or its designee elects to replace Btu's, to
          provide Northern with the Mcf and Btu content of the residue gas attributable to the
          processing of Shipper's gas.  After processing, all residue gas, and any Btu replacement
          gas tendered to Northern at the tailgate of a processing plant, must conform to the
          quality specifications of this Section 44 of the GENERAL TERMS AND CONDITIONS.
Issued by: Mary Kay Miller, V. P. Regulatory and Customer Service
Issued on: May 1, 2003                                                       Effective: November 1, 2003