Northern Natural Gas Company                                             Sixth Revised Sheet No. 287A
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                               Fifth Revised Sheet No. 287A

                                       GENERAL TERMS AND CONDITIONS

 E. Bids.  During the open season, a Shipper desiring to bid on released capacity must
    use Northern's  website to post all valid bids, listing all pertinent terms and
    conditions of the valid bids.  Valid bids shall be partially executed Service
    Agreements.  Any acquiring Shipper must meet Northern's creditworthiness requirements
    pursuant to Section 46, of GENERAL TERMS AND CONDITIONS of this Tariff.

    Bids for released capacity shall be binding until written or electronic notice of
    withdrawal is received by Northern.  A bidder may not withdraw a bid for the released
    capacity after the bid period ends.  Once a bidder has withdrawn its bid, the bidder
    may only submit a new bid for that released capacity at a higher rate.

    Northern shall allocate available capacity to the best bid first and continue
    allocating until all offered capacity is awarded.  Unless the releasing Shipper
    has specified otherwise, in the event equivalent bids are submitted, the
    capacity will be made available on a pro rata basis to the equal bidders.  Should
    any one of the equal bidders veto the pro rata allocation of the capacity,
    Northern will conduct a lottery to select the winning bidder, who will then be
    allocated its requested capacity.  The remainder will be available to the other
    bidder(s) on a pro rata basis, which may again trigger the veto/lottery selection
    process.

F.  Determination and Posting of Best Offer; Awarding Capacity.  At the close of the open
    season Northern will evaluate the bids and will determine which bid constitutes the
    best bid by determining the highest economic unit value unless the releasing Shipper
    has provided Northern an alternative best bid evaluation methodology.  The
    releasing Shipper may designate one of the following options to determine the
    best bid: 1) highest rate; 2) net revenue and 3) present value. For index-based
    capacity release transactions, the releasing Shipper should provide the necessary
    information and instructions to support the chosen methodology.  For additional
    information regarding releases using an indexed-based rate(s), see subsection P. below.
    Other choices of bid evaluation methodology may be selected by the releasing Shipper at
    the discretion of Northern.  However, Northern is not required to offer other choices
    or similar timeline treatment for other choices, nor, is it held to the timeline should
    the releasing Shipper elect another method of evaluation.  Northern will utilize a
    calculation based on rate, term and quantity to determine the highest economic unit
    value, utilizing the F.E.R.C.  interest rate.  The comparative economic unit value of
    each bid will be determined by calculating the Net Present Value (NPV) of each bid over
    the term of the bid, and then dividing by the quantity of the respective bid.  The NPV
    calculation shall include only revenue generated by the reservation rate or a
    guaranteed throughput volume.  In those cases where one or more bidders is willing to
    pay the maximum recourse reservation rate, the NPV used in such cases is capped at, and
    may not exceed, the NPV equal to the maximum reservation rate available to recourse
    shippers.  Northern's evaluation will be completed and the bid to be matched (for
    pre-arranged deals) or awarded will be communicated by 2:00 p.m. (CCT).  Any match
    response is due by 2:30 p.m. (CCT) and the award will be posted on the website by
    3:00 p.m.  (CCT).  A contract with the contract number will be issued within one hour
    of award posting, with nomination possible beginning at the next available nomination
    cycle for the effective date of the contract.

    The above capacity release timelines, as set forth in this Section 47, are applicable
    to all parties; however, it is only applicable if 1) all information provided by the
    parties to the transaction is valid and the acquiring shipper has been determined to be
    credit worthy before the capacity release bid is tendered, 2) for index-based capacity
    release transactions, the releasing Shipper has provided Northern with sufficient
    instructions to evaluate the corresponding bid(s) according to the timelines
    3) there are no special terms or conditions of the release and 4) one of the above
    listed best bid evaluation methodologies is selected. Further, Northern may complete
    the capacity release process on a different timelime if the offer includes unfamiliar
    or unclear terms and conditions (e.g., designation of an index not supported by
    Northern.  In the event the above conditions are not met, the transaction will be
    processed within three (3) business days or as soon as reasonably practicable,
    whichever is sooner.

    A new service agreement(s) and contract number(s) will be issued for temporary released
    capacity.  Permanently acquired capacity may be added to existing agreements if
    requested.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: August 27, 2010                                             Effective: September 29, 2010