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Northern Border Pipeline Company
FERC Gas Tariff
First Revised Volume No. 1

Third Revised Sheet No. 185
Superseding
Second Revised Sheet No. 185

                               RATE SCHEDULE PAL
                             PARK AND LOAN SERVICE


  2.  APPLICABILITY AND CHARACTER OF SERVICE (Continued)

       2.3   Park and Loan (PAL) Service Options (Continued)

              2.33  Company Offered Parking/Lending (OPL) (Continued)

                    Bids for OPL service shall be considered only if 
                    Company has received from Buyer a proposal for 
                    service under this Rate Schedule.

                    For the purposes of determining the Best Bid(s) for 
                    a posted Company Offered Parking/Lending Service, 
                    Company will award service on basis of highest rate 
                    bid.  In the event there is more than one Best Bid, 
                    Company will allocate service on a pro-rata basis.

                    Company and Buyer shall execute Exhibit A to an 
                    effective PAL Agreement(s) for the winning bid(s).

                    In the event that the receipt and delivery points 
                    differ under a specific OPL transaction, then a 
                    separately stated amount for transportation shall be 
                    included in the bid.  Such transportation amount 
                    shall not be priced at less than the Minimum 
                    Commodity Rate pursuant to Rate Schedule IT-1 on a 
                    dekatherm basis.

              2.34  Buyer Authorized Automatic Parking/Lending (APL)

                    Buyer Authorized Automatic Parking/Lending (APL) is a 
                    service option that allows a Buyer to pre-authorize 
                    Company to nominate, on the Buyer's behalf, parking 
                    and/or lending service within a supported nomination 
                    cycle in attempt to minimize the Buyer's Stranded 
                    Allocated Capacity in such cycle.

                    To initiate on a prospective basis, a Buyer must 
                    complete and submit to Company a proposed Exhibit A to 
                    an effective PAL Agreement.

                    Buyer retains the right to prospectively adjust 
                    scheduled parking and/or lending activity nominated 
                    via APL in subsequent nomination cycles.

Issued by: Raymond D. Neppl, Vice President
Issued on: March 2, 2004                      Effective on: September 1, 2004
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