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AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

Limited Partnership Agreement

AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP | Document Parties: Northern Plains Natural Gas Company, LLC | ONEOK Partners GP, LLC | ONEOK Partners, LP You are currently viewing:
This Limited Partnership Agreement involves

Northern Plains Natural Gas Company, LLC | ONEOK Partners GP, LLC | ONEOK Partners, LP

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Title: AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
Governing Law: Delaware     Date: 8/3/2007
Industry: Natural Gas Utilities     Sector: Utilities

AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP, Parties: northern plains natural gas company  llc , oneok partners gp  llc , oneok partners  lp
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EXHIBIT 3.1

AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP OF

ONEOK PARTNERS, L.P.

This Amendment No. 1, dated July 20, 2007 (this “ Amendment ”), to the Third Amended and Restated Agreement of Limited Partnership (the “ Partnership Agreement ”), of ONEOK Partners, L.P., a Delaware limited partnership, dated as of September 15, 2006, is entered into and effectuated by ONEOK Partners GP, L.L.C., a Delaware limited liability company and f/k/a Northern Plains Natural Gas Company, LLC in its capacity as the General Partner, pursuant to authority granted to it in Article XV of the Partnership Agreement. Capitalized terms used but not defined herein are used as defined in the Partnership Agreement.

RECITALS:

WHEREAS, Section 15.1(d)(i) of the Partnership Agreement provides that the General Partner, without the approval of any Partner, may amend any provision of the Partnership Agreement to reflect a change that the General Partner determines does not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect;

WHEREAS, on December 1, 2006, the Partnership entered into the stipulation of settlement (the “ Settlement ”) in connection with the now-dismissed lawsuit, F. Richard Manson v. Northern Plains Natural Gas Company, LLC, et al., C.A. No. 1973-N (Court of Chancery in the State of Delaware, County of New Castle) in which, among other matters, it agreed to make changes to the terms of the Partnership Agreement to (a) amend the definition of “Audit Committee” to provide that at least one member of the Audit Committee will be an audit committee financial expert, and (b) amend the terms of the Class B Units to provide that (i) if the Conversion Approval or Amendment Approval was not obtained, the holder of the Class B Units would be entitled to increased distributions equal to 110% of the distributions due to Common Unitholders instead of 115% as set forth in the original terms of the Class B Units, and (ii) in certain circumstances, the holder of the Class B Units would be entitled to increased distributions equal to 123.5% of the distributions due to Common Unitholders instead of 125% as set forth in the original terms of the Class B Units;

WHEREAS, at a special meeting of Common Unitholders of the Partnership held on March 29, 2007, the Conversion Approval was obtained, and the meeting was adjourned to May 10, 2007 without obtaining the Amendment Approval;

WHEREAS, at the adjourned special meeting of Common Unitholders of the Partnership held on May 10, 2007, the Amendment Approval was not obtained;

WHEREAS, the Audit Committee has determined, pursuant to Section 6.9 of the Partnership Agreement, that amending the Partnership Agreement to reflect the terms of the Settlement and the outcome of the special meeting and the adjourned special meeting referenced

 

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above is fair and reasonable to the Partnership, and has recommended to the General Partner that such updating amendments to the Partnership Agreement be approved; and

WHEREAS, the General Partner, has determined that it is in the best interest of the Partnership and the Limited Partners, and does not adversely affect the Limited Partners in any material respect, to amend the Partnership Agreement to reflect the outcome of the special meeting and the adjourned special meeting, to reflect the terms of the Settlement and to make such other changes pursuant to Section 15.1(d)(i) as the General Partner deems to be appropriate.

NOW, THEREFORE, it is hereby agreed as follows:

A. Amendment. The Partnership Agreement is hereby amended as follows:

 

  1) Section 2.1 is hereby amended as follows:

 

  a) the definition of “Audit Committee” shall be deleted in its entirety and replaced with the following:

Audit Committee ” means a committee of the Board of Directors of the General Partner consisting of three or more members of the Board of Directors appointed by the Board of Directors who meet the independence and other standards required of directors who serve on an audit committee of a board of directors established by (a) the Securities Exchange Act and rules and regulations of the Commission thereunder, (b) the National Securities Exchange on which the Common Units are listed or admitted to trading and (c) the Board of Directors; provided that at least one member of the Audit Committee will be an audit committee financial expert (as defined in Item 407(d)(5) of Regulation S-K, the Standard Instructions for Filing Forms under the Securities Act of 1933, Securities and Exchange Act of 1934, and Energy and Policy Conversion Act of 1975) and provided further that the aforesaid definition cannot be amended other than with the prior approval of a majority of the Outstanding Common Units (excluding Units held by the General Partner and its Affiliates).

 

  2) Section 2.1 is hereby amended to delete the following definitions:

Class B Subordination Period ”;

Class B Unit Arrearage ”;

Common Unit Arrearage ”;

Conversion Approval Termination Date ”;

Cumulative Class B Unit Arrearage ”;

Cumulative Common Unit Arrearage ”; and

 

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Section 4.9(b) Distribution Increase Date ”.

 

  3) Section 2.1 is hereby amended to substitute the following definitions in place of the existing definitions:

Class B Distribution Increase Date ” means April 7, 2007; and

Conversion Approval Date ” means March 29, 2007.

 

  4) Section 2.1 is hereby amended to add the following definition:

Conversion Approval ” means the approval of a change in the terms of the Class B Units to provide that each Class B Unit shall be convertible from time to time, at the option of the holders thereof, into one Common Unit (subject to appropriate adjustment in the event of any split-up, combination or similar event affecting the Common Units that occurs prior to the conversion of the Class B Units).

 

  5) Section 4.8 shall be deleted in its entirety and replaced with the following:

Section 4.8 Establishment of Class B Units.

 

  a) General. Prior to the Effective Date, the Partnership Policy Committee designated and created a class of Units designated as “Class B Units” and consisting of a total of 36,494,126 Class B Units, and fixed the designations, preferences and relative, participating, optional or other special rights, power and duties of holders of the Class B Units as set forth in this Section 4.8.

 

  b) Rights Associated with Class B Units. Prior to the conversion of all of the Class B Units pursuant to Section 4.8(f) below:

 

  i) subject to the provisions of Section 5.1(d)(iii)(A) and paragraphs (ii) and (iii) below, all items of Partnership income, gain, loss, deduction and credit shall be allocated to the Class B Units to the same extent such items would be allocated if such Class B Units were Common Units then Outstanding, and the allocations to Class B Units shall have the same order of priority relative to allocations on the Common Units;

 

  ii)

the Class B Units shall have the right to share in Partnership quarterly cash distributions based on 110% of the amount of any Partnership distribution that would be made to each Common Unit so that the amount of any Partnership distribution to each Class B Unit will equal 110% of the amount of such distribution to each Common Unit (such additional 10% pro rated for the quarter in which the Class B

 

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Distribution Increase Date occurs), and the right of holders of Class B Units to receive distributions shall have the same order of priority relative to distributions on the Common Units; and

 

  iii) the Class B Units shall have rights upon dissolution and liquidation of the Partnership, including the right to share in any liquidating distributions, that are based on 110% of the liquidating distributions that would be made to the Common Units so that the amount of any liquidating distribution to each Class B Unit will equal 110% of the amount of such distribution to each Common Unit, and accordingly, notwithstanding anything to the contrary in this Agreement, prior to any distribution under Section 14.4, the Capital Account of each Partner shall be adjusted to give effect to the foregoing liquidation rights.

 

  c) Voting Rights. The Class B Units will have such voting rights pursuant to the Partnership Agreement as such Class B Units would have if they were Common Units that were then Outstanding except that (i) for the purposes of the definition of “Outstanding” such Class B Units shall be deemed to be “Units” but not “Common Units” for all purposes thereof, and (ii) with respect to the Amendment Approval, none of the Class B Units shall be deemed Outstanding as of the record date for such vote or be entitled to vote. Each Class B Unit will be entitled to the number of votes equal to the number of Common Units into which a Class B Unit is convertible.”

 

  d) Certificates. The Class B Units are evidenced by certificates in the form previously approved by the Partnership Policy Committee and, subject to the satisfaction of any applicable legal and regulatory requirements, may be assigned or transferred in a manner identical to the assignment and transfer of other Units. The Class B Unit Certificates include the restrictive legend set forth below:

THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW (“ACTS”). THE UNITS HAVE BEEN ACQUIRED


 
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