1. NORTHERN BORDER PARTNERS, L.P.
DISTRIBUTION RECOMMENDATION & ANALYSIS
JANUARY 2000

2. NORTHERN BORDER PARTNERS, L.P. DISTRIBUTION RECOMMENDATION & ANALYSIS
Announce intention to complete $150 million of investments
Bighorn constitutes $50 million of total
Twelve to twenty-four month timeframe
Announce distribution increase of $0.16/unit on January 19th
Distribution rises to $2.60
Indicate confidence in business strategy, anticipated results from Bighorn investment and success of The Chicago Project
Price impact of $2.60 distribution:
01/11 Price: $ Distribution: $2.44 Yield: 9.91%

3. NORTHERN BORDER PARTNERS, L.P. DISTRIBUTION ANALYSIS
Analysis examined distribution sustainability at various levels under different business scenarios
One-time increase payable beginning February 15, 2000
Assumed utilization of cash reserves
Distributions maintained through:
Case Case Case Case 4
Distribution Increase: $ $ $ $0.20
Base Case [no Bighorn impact]
Base Case [w/ Bighorn]
Growth Case [Bighorn + $100 million
of 12% cash return]

4. NORTHERN BORDER PARTNERS, L.P. DISTRIBUTION ANALYSIS MAJOR ASSUMPTIONS
NORTHERN BORDER PIPELINE
Cost of service tariff with existing depreciation rates and 12% ROE
Additional debt repayments are funded through equity contributions
Level based on partners’ available cash
NORTHERN BORDER PARTNERS, L.P.
All Cases:
No units are issued to repay debt
Cash reserve includes equity contributions made to NBPL
Base Case [no Bighorn impact]:
NBPL and Black Mesa only; Bighorn distributions equal to financing costs
Base Case [w/ Bighorn impact]:
Bighorn distributions based upon low well count case
Growth Case:
Base Case [w/ Bighorn impact] plus two $50 million investments
June 2000 & June 2001
Estimated distributions based upon 12% cash return