NNG - Tariff - Third Revised Sheet No. 253A

Northern Natural Gas Company                                             Third Revised Sheet No. 253A
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                              Second Revised Sheet No. 253A




                               GENERAL TERMS AND CONDITIONS

                   Capacity may be reserved for expansion projects only for a 12-month
                   period prior to Northern filing for certificate approval for
                   construction of proposed expansion facilities, and thereafter until
                   the effective date of any Service Agreement related to the certificate
                   filing or the date the expansion facilities are placed into service.

                   If Northern reserves capacity for an expansion project, it will notify
                   Shippers of its intent as part of Northern's posting of capacity on its
                   Internet website.  Northern's posting for reserved capacity for future
                   expansion projects shall include the following information:  (a) a
                   description of the project for which the capacity will be reserved;
                   (b) the total quantity of capacity to be reserved; (c) the location of
                   the proposed reserved capacity on the pipeline system; (d) whether, and
                   if so when, Northern anticipates that an open season for the capacity
                   will be held or the reserved capacity will otherwise be posted for
                   bids; (e) the projected in-service date of new facilities; and (f) on
                   an ongoing basis, how much of the reserved capacity has been sold on a
                   limited-term basis that would otherwise be eligible for a right of
                   first refusal.  Northern will make reasonable efforts to update the
                   reservation posting up to the in-service date of the project to reflect
                   any material changes in the scope of the project.  The reservation
                   posting or open season will include a non-binding solicitation for
                   turnback capacity from Northern's existing Shippers to serve the
                   expansion project.  In the event Northern includes the solicitation for
                   turnback capacity in the reservation posting, the reservation of
                   capacity must be posted no later than 90 days following an open season
                   for a project.

                   Any capacity reserved under this section will be made available for
                   transportation service pursuant to Northern's GENERAL TERMS AND
                   CONDITIONS on a limited-term basis. Northern reserves the right to
                   limit any extension rights provided in the service agreement and
                   pursuant to Section 52 - Right of First Refusal of the GENERAL TERMS
                   AND CONDITIONS - commensurate with the effective date of any Service
                   Agreement supporting an expansion project or proposed in-service date
                   of any facilities.  Any capacity reserved for a project that does not
                   go forward for any reason shall be reposted as generally available
                   within 30 days of the date the capacity becomes available, with the
                   exception of capacity committed to in contracts entered into on an
                   interim limited term basis during the period the capacity was reserved.
















Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: May 11, 2007                                                     Effective: June 11, 2007