UNITED STATES SECURITIES AND EXCHANGE
                              COMMISSION
                        WASHINGTON, D.C. 20549
                               FORM 10-Q




QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001




                   Commission File Number 333-88577
                   NORTHERN BORDER PIPELINE COMPANY
        (Exact name of registrant as specified in its charter)


            Texas                             74-2684967
(State or other jurisdiction of      (I.R.S. Employer Identification
incorporation or organization)                 Number)



   1111 South 103rd Street
       Omaha, Nebraska                        68124-1000
(Address of principal executive               (Zip code)
           offices)


                            (402) 398-7700
         (Registrant's telephone number, including area code)




   Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes [X]     No [ ]


                                1 of 14

<PAGE>
                   NORTHERN BORDER PIPELINE COMPANY

                           TABLE OF CONTENTS




                                                            Page No.
PART I.   FINANCIAL INFORMATION

   ITEM 1.  Financial Statements

       Statement of Income -
          Three Months Ended March 31, 2001 and 2000            3
       Statement of Comprehensive Income -
          Three Months Ended March 31, 2001 and 2000            3
       Balance Sheet - March 31, 2001
          and December 31, 2000                                 4
       Statement of Cash Flows -
          Three Months Ended March 31, 2001 and 2000            5
       Statement of Changes in Partners' Equity -
          Three Months Ended March 31, 2001                     6
       Notes to Financial Statements                            7

   ITEM 2.  Management's Discussion and Analysis of
             Financial Condition and Results of Operations     10

   ITEM 3.  Quantitative and Qualitative Disclosures About
             Market Risk                                       12

PART II.  OTHER INFORMATION

   ITEM 6.  Exhibits and Reports on Form 8-K                   13


<PAGE>
<TABLE>
                     PART I. FINANCIAL INFORMATION

                     ITEM 1. FINANCIAL STATEMENTS

                   NORTHERN BORDER PIPELINE COMPANY
                          STATEMENT OF INCOME
                            (In Thousands)
                              (Unaudited)

<CAPTION>
                                           Three Months Ended
                                                March 31,
                                             2001      2000

<S>                                         <C>       <C>
OPERATING REVENUES
 Operating revenues                         $79,097   $83,100
 Provision for rate refunds                  (2,057)   (6,859)

   Operating revenues, net                   77,040    76,241

OPERATING EXPENSES
 Operations and maintenance                   8,549     9,055
 Depreciation and amortization               14,454    14,837
 Taxes other than income                      3,719     7,721

   Operating expenses                        26,722    31,613

OPERATING INCOME                             50,318    44,628

INTEREST EXPENSE                             15,055    16,289

OTHER INCOME                                    626       405

NET INCOME TO PARTNERS                      $35,889   $28,744
</TABLE>

<TABLE>
                   NORTHERN BORDER PIPELINE COMPANY
                   STATEMENT OF COMPREHENSIVE INCOME
                            (In Thousands)
                              (Unaudited)

<CAPTION>
                                           Three Months Ended
                                                March 31,
                                             2001      2000

<S>                                        <C>        <C>
Net income to partners                     $35,889    $28,744
Other comprehensive income:
 Transition adjustment from adoption
   of SFAS No. 133                          10,347         --
 Change associated with current period
   hedging transactions                      2,441         --

Total comprehensive income                 $48,677    $28,744


<FN>
 The accompanying notes are an integral part of these financial
                              statements.
</TABLE>



<PAGE>
<TABLE>
               PART I. FINANCIAL INFORMATION (Continued)

               ITEM 1. FINANCIAL STATEMENTS (Continued)

                   NORTHERN BORDER PIPELINE COMPANY
                             BALANCE SHEET
                            (In Thousands)
                              (Unaudited)

<CAPTION>
                                              March 31,  December 31,
ASSETS                                          2001         2000

<S>                                         <C>          <C>
CURRENT ASSETS
 Cash and cash equivalents                  $   15,513   $   29,046
 Accounts receivable                            29,135       33,136
 Materials and supplies, at cost                 4,680        4,957

   Total current assets                         49,328       67,139

NATURAL GAS TRANSMISSION PLANT
 Property, plant and equipment               2,383,544    2,378,892
 Less: Accumulated provision for
   depreciation and amortization               706,077      691,900

   Property, plant and equipment, net        1,677,467    1,686,992

OTHER ASSETS                                    16,925       14,374

   Total assets                             $1,743,720   $1,768,505


LIABILITIES AND PARTNERS' EQUITY

CURRENT LIABILITIES
 Current maturities of long-term debt       $   41,000   $   41,000
 Accounts payable                                3,738       26,087
 Accrued taxes other than income                25,819       28,137
 Accrued interest                                5,816       14,401
 Accumulated provision for rate refunds             --        4,726

   Total current liabilities                    76,373      114,351

LONG-TERM DEBT, NET OF CURRENT MATURITIES      818,184      822,267

RESERVES AND DEFERRED CREDITS                    4,892        4,892

PARTNERS' EQUITY
   Partners' capital                           831,483      826,995
   Accumulated other comprehensive income       12,788           --

    Total partners' equity                     844,271      826,995

   Total liabilities and partners' equity   $1,743,720   $1,768,505

<FN>
 The accompanying notes are an integral part of these financial
                              statements.
</TABLE>


<PAGE>
<TABLE>
               PART I. FINANCIAL INFORMATION (Continued)

               ITEM 1. FINANCIAL STATEMENTS (Continued)

                   NORTHERN BORDER PIPELINE COMPANY
                        STATEMENT OF CASH FLOWS
                            (In Thousands)
                              (Unaudited)

<CAPTION>
                                                   Three Months Ended
                                                        March 31,
                                                     2001      2000

<S>                                                <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income to partners                            $ 35,889   $ 28,744

 Adjustments to reconcile net income to partners
  to net cash provided by operating activities:
   Depreciation and amortization                     14,546     14,889
   Provision for rate refunds                         2,036      6,916
   Rate refunds paid                                 (6,762)        --
   Changes in components of working capital          (7,433)   (11,649)
   Other                                               (375)      (462)

      Total adjustments                               2,012      9,694

   Net cash provided by operating activities         37,901     38,438

CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures for property, plant
   and equipment                                     (4,596)      (377)

CASH FLOWS FROM FINANCING ACTIVITIES:
 Distributions to Partners                          (31,401)   (30,872)
 Issuance of long-term debt                          17,000     15,000
 Retirement of long-term debt                       (10,000)        --
 Decrease in bank overdraft                         (22,437)        --
 Long-term debt financing costs                          --       (101)

   Net cash used in financing activities            (46,838)   (15,973)

NET CHANGE IN CASH AND CASH EQUIVALENTS             (13,533)    22,088

Cash and cash equivalents-beginning of period        29,046     17,310

Cash and cash equivalents-end of period            $ 15,513   $ 39,398




Supplemental Disclosures of Cash Flow Information:
 Cash paid for:
   Interest (net of amount capitalized)            $ 23,837   $ 25,415

Changes in components of working capital:
   Accounts receivable                             $  4,001   $ (5,635)
   Materials and supplies                               277     (1,357)
   Under recovered cost of service                       --      2,335
   Accounts payable                                    (808)       (89)
   Accrued taxes other than income                   (2,318)     2,037
   Accrued interest                                  (8,585)    (8,940)

    Total                                          $ (7,433)  $(11,649)

<FN>
    The accompanying notes are an integral part of these financial
                              statements.
</TABLE>

<PAGE>
<TABLE>
               PART I. FINANCIAL INFORMATION (Continued)

               ITEM 1. FINANCIAL STATEMENTS (Continued)

                   NORTHERN BORDER PIPELINE COMPANY
               STATEMENT OF CHANGES IN PARTNERS' EQUITY
                            (In Thousands)
                              (Unaudited)

<CAPTION>
                                       TC           Northern
                                    PipeLines        Border       Accumulated
                                   Intermediate   Intermediate       Other
                                     Limited         Limited     Comprehensive    Total
                                   Partnership    Partnership        Income       Equity

  <S>                                <C>            <C>            <C>           <C>
  Balance at December 31, 2000       $248,098       $578,897       $    --       $826,995

  Net income to partners               10,767         25,122            --         35,889

  Transition adjustment from
    adoption of SFAS No. 133               --             --        10,347         10,347

  Change associated with current
    period hedging transactions            --             --         2,441          2,441

  Distributions to partners            (9,420)       (21,981)           --        (31,401)

  Balance at March 31, 2001          $249,445       $582,038       $12,788       $844,271

<FN>
 The accompanying notes are an integral part of this financial
                              statement.
</TABLE>


<PAGE>
           PART I. FINANCIAL INFORMATION - (Continued)

           ITEM 1. FINANCIAL STATEMENTS - (Continued)

                NORTHERN BORDER PIPELINE COMPANY
                  NOTES TO FINANCIAL STATEMENTS


1. BASIS OF PRESENTATION

   The financial statements included herein have been prepared by
Northern Border Pipeline Company without audit pursuant to the
rules and regulations of the Securities and Exchange Commission.
Accordingly, they reflect all adjustments that are, in the
opinion of management, necessary for a fair presentation of the
financial results for the interim periods.  Certain information
and notes normally included in financial statements prepared in
accordance with accounting principles generally accepted in the
United States have been condensed or omitted pursuant to such
rules and regulations.  However, Northern Border Pipeline
believes that the disclosures are adequate to make the
information presented not misleading.  These financial statements
should be read in conjunction with the financial statements and
the notes thereto included in Northern Border Pipeline's Annual
Report on Form 10-K for the year ended December 31, 2000.

   The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those
estimates.

2. RATE CASE

   Northern Border Pipeline filed a rate proceeding with the
Federal Energy Regulatory Commission ("FERC") in May 1999 for,
among other things, a redetermination of its allowed equity rate
of return.  The total annual cost of service increase due to
Northern Border Pipeline's proposed changes was approximately $30
million.  In June 1999, the FERC issued an order in which the
proposed changes were suspended until December 1, 1999, after
which the proposed changes were implemented with subsequent
billings subject to refund.

   In September 2000, Northern Border Pipeline filed a
stipulation and agreement with the FERC that documented the
proposed settlement of its pending rate case.  The settlement was
approved by the FERC in December 2000.  Under the approved
settlement, effective December 1, 1999, shippers will pay stated
transportation rates based on a straight-fixed variable rate
design.  From December 1, 1999, through and including December
31, 2000, the rates were based upon an annual revenue level of
$307 million.  Beginning January 1, 2001, the rates are based
upon an annual revenue level of $305 million.

   After the FERC approved the rate case settlement and prior to
the end of 2000, Northern Border Pipeline made estimated refund
payments to its shippers totaling approximately $22.7 million,
primarily related to the period from December 1999 to November
2000.  During the first quarter of 2001, Northern Border Pipeline
paid the remaining refund obligation to its shippers totaling
approximately $6.8 million, which related to periods through
January 2001.

3. CERTIFICATE APPLICATION

   On March 16, 2000, the FERC issued an order granting Northern
Border Pipeline's application for a certificate to construct and
operate the proposed expansion and extension of its pipeline
system into Indiana ("Project 2000").  The FERC approved Northern
Border Pipeline's request for rolled-in rate treatment based upon
the proposed project costs.  The project has a targeted in-
service date of November 2001.  The capital expenditures for the
project are budgeted to be approximately $94 million, of which
$14.7 million had been incurred through March 31, 2001.

4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

   Northern Border Pipeline uses financial instruments in the
management of its interest rate exposure.  A control environment
has been established which includes policies and procedures for
risk assessment and the approval, reporting and monitoring of
financial instrument activities.  As a result, Northern Border
Pipeline has entered into various interest rate swap agreements
with major financial institutions to hedge its interest rate
risk.

   In 1998, the Financial Accounting Standards Board issued SFAS
No. 133, "Accounting for Derivative Instruments and Hedging
Activities," which was subsequently amended by SFAS No. 137 and
SFAS No. 138.  SFAS No. 133 requires that every derivative
instrument (including certain derivative instruments embedded in
other contracts) be recorded on the balance sheet as either an
asset or liability measured at its fair value.  The statement
requires that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge accounting
criteria are met.  Special accounting for qualifying hedges
allows a derivative's gains and losses to offset related results
on the hedged item in the income statement, and requires that a
company formally document, designate and assess the effectiveness
of transactions that receive hedge accounting.  Northern Border
Pipeline adopted SFAS No. 133 beginning January 1, 2001.

   As a result of the adoption of SFAS No. 133, Northern Border
Pipeline reclassified approximately $11.1 million from long-term
debt to accumulated other comprehensive income related to
unamortized proceeds from the termination of interest rate swap
agreements.  Also upon adoption, Northern Border Pipeline
recorded a non-cash loss in accumulated other comprehensive
income of approximately $0.8 million, related to its outstanding
interest rate swap agreement with a notional amount of $40.0
million.

   During the first quarter of 2001, Northern Border Pipeline
amortized approximately $0.3 million related to the terminated
interest rate swap agreements from accumulated other comprehensive
income to interest expense, and expects to amortize comparable
amounts in each of the remaining quarters of 2001.

   In March 2001, Northern Border Pipeline entered into forward
starting interest rate swaps with notional amounts totaling $200
million related to the planned issuance of 10-year and 30-year
senior notes.  The swap instruments may be settled any time prior
to their expiration date on October 1, 2001.  The swaps have been
designated as cash flow hedges as they were entered into to hedge
the fluctuations in Treasury rates and spreads between the execution
date of the swaps and the issuance date of the senior notes.  At
March 31, 2001, Northern Border Pipeline recognized a non-cash
gain in accumulated other comprehensive income of approximately
$2.7 million, with a corresponding amount reflected in other
assets on the accompanying balance sheet.

5. SUBSEQUENT EVENT

   Northern Border Pipeline makes distributions to its general
partners approximately one month following the end of the
quarter.  The distribution computed for the first quarter of 2001
of approximately $38.5 million was paid May 2, 2001.

<PAGE>
           PART I. FINANCIAL INFORMATION - (Continued)

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                NORTHERN BORDER PIPELINE COMPANY


Results of Operations

   Northern Border Pipeline's revenue is derived from agreements
with various shippers for the transportation of natural gas.  It
transports gas under a Federal Energy Regulatory Commission
("FERC") regulated tariff.  Northern Border Pipeline had used a
cost of service form of tariff since its inception but agreed to
convert to a stated rate form of tariff as part of the settlement
of its current rate case discussed below.

   Under the cost of service tariff, Northern Border Pipeline was
provided an opportunity to recover all of the operations and
maintenance costs of the pipeline, taxes other than income taxes,
interest, depreciation and amortization, an allowance for income
taxes and a regulated return on equity.  Northern Border Pipeline
was generally allowed to collect from its shippers a return on
regulated rate base as well as recover that rate base through
depreciation and amortization.  Billings for the firm
transportation agreements were based on contracted volumes to
determine the allocable share of the cost of service and were not
dependent upon the percentage of available capacity actually
used.

   Northern Border Pipeline filed a rate proceeding with the FERC
in May 1999 for, among other things, a redetermination of its
allowed equity rate of return.  In September 2000, Northern
Border Pipeline filed a stipulation and agreement with the FERC
that documented the proposed settlement of its pending rate case.
The settlement was approved by the FERC in December 2000.  Under
the approved settlement, effective December 1, 1999, shippers
will pay stated transportation rates based on a straight-fixed
variable rate design.  Under the straight-fixed variable rate
design, approximately 98% of the agreed upon revenue level is
attributed to demand charges, based upon contracted firm
capacity, and the remaining 2% is attributed to commodity
charges, based on the volumes of gas actually transported on the
system.

   As of December 31, 2000, the termination dates of the
shippers' contracts ranged from October 31, 2003 to December 21,
2013 and the weighted average contract life was approximately six
years with just under 99% of capacity contracted through mid-
September 2003.  Contracts for approximately 44% of the capacity
will expire between mid-September 2003 and the end of October 2005.

First Quarter 2001 Compared With First Quarter 2000

   Operating revenues, net increased $0.8 million for the first
quarter of 2001, as compared to the same period in 2000.
Northern Border Pipeline's net operating revenues for 2001
reflect the rate case settlement discussed above.  Net operating
revenues for 2000 were determined under Northern Border
Pipeline's cost of service tariff.

   Taxes  other than income decreased $4.0 million (52%) for  the
first  quarter of 2001, as compared to the same period  in  2000,
due  primarily to adjustments to previous estimates of ad valorem
taxes.

   Interest expense decreased $1.2 million (8%) for the first
quarter of 2001, as compared to the same period in 2000, due
primarily to a decrease in average debt outstanding.

Liquidity and Capital Resources

General

   Northern Border Pipeline had previously entered into a 1997
credit agreement ("Pipeline Credit Agreement") with certain
financial institutions, which is comprised of a $200 million five-
year revolving credit facility and a $414 million term loan, both
maturing in June 2002.  At March 31, 2001, $62 million was
outstanding under the five-year revolving credit facility.

   At March 31, 2001, Northern Border Pipeline also had
outstanding $184 million of senior notes issued in a $250 million
private placement under a July 1992 note purchase agreement.  The
note purchase agreement provides for four series of notes, Series
A through D, maturing between August 2000 and August 2003.  The
Series A Notes with a principal amount of $66 million were repaid
in August 2000.  The Series B Notes with a principal amount of
$41 million mature in August 2001.  Northern Border Pipeline
anticipates borrowing on the Pipeline Credit Agreement to repay
the Series B Notes.

   In March 2001, Northern Border Pipeline entered into forward
starting interest rate swaps with notional amounts totaling $200
million related to a planned issuance of 10-year and 30-year
senior notes.  The swap instruments may be settled any time prior
to their expiration date on October 1, 2001.  The proceeds from
the issuance of the senior notes will be used to repay
outstanding indebtedness.

   Short-term liquidity needs will be met by internal sources and
through the revolving credit facility discussed above.  Long-term
capital needs may be met through the ability to issue long-term
indebtedness.

Cash Flows From Operating Activities

   Cash flows provided by operating activities decreased $0.5
million to $37.9 million for the first quarter of 2001, as
compared to the same period in 2000.  During 2001, Northern
Border Pipeline realized net cash outflows of approximately $4.7
million related to its rate case.  During the first quarter of
2001, Northern Border Pipeline made refunds to its shippers
totaling $6.8 million, which included $2.1 million collected in
the first quarter of 2001 with the remainder collected
previously.

Cash Flows From Investing Activities

   Capital expenditures of $4.6 million for the first quarter of
2001 included $3.8 million for Project 2000 (see Note 3 - Notes
to Financial Statements) and $0.8 million primarily related to
renewals and replacements of existing facilities.  For the
comparable period in 2000, capital expenditures were $0.4 million
primarily related to Project 2000.

   Total capital expenditures for 2001 are estimated to be $78
million, including $62 million for Project 2000.  The remaining
capital expenditures planned for 2001 are for renewals and
replacements of existing facilities.  Northern Border Pipeline
currently anticipates funding its 2001 capital expenditures
primarily by debt borrowings and using internal sources.

Cash Flows From Financing Activities

   Cash flows used in financing activities increased $30.9
million to $46.8 million for the first quarter of 2001 as
compared to same period in 2000.  For the first quarter of 2001,
Northern Border Pipeline recognized a decrease in bank overdraft
of $22.4 million.  At December 31, 2000, Northern Border Pipeline
reflected the bank overdraft primarily due to refund checks
outstanding.  During the first quarter of 2001, Northern Border
Pipeline repaid $10.0 million on its term loan.

Information Regarding Forward Looking Statements

   The statements in this Quarterly Report that are not
historical information are forward looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934.  Such forward looking
statements include the discussions in "Management's Discussion
and Analysis of Financial Condition and Results of Operations"
and in "Notes to Financial Statements" regarding Northern Border
Pipeline's efforts to pursue opportunities to further increase
its capacity.  Although Northern Border Pipeline believes that
its expectations regarding future events are based on reasonable
assumptions within the bounds of its knowledge of its business,
it can give no assurance that its goals will be achieved or that
its expectations regarding future developments will be realized.
Important factors that could cause actual results to differ
materially from those in the forward looking statements herein
include industry results, future demand for natural gas,
availability of supplies of Canadian natural gas, political and
regulatory developments that impact FERC proceedings involving
Northern Border Pipeline, Northern Border Pipeline's success in
sustaining its positions in such proceedings or the success of
intervenors in opposing Northern Border Pipeline's positions,
competitive developments by Canadian and U.S. natural gas
transmission peers, political and regulatory developments in
Canada, and conditions of the capital markets and equity markets.

<PAGE>
  ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
                              RISK

                NORTHERN BORDER PIPELINE COMPANY


   Northern Border Pipeline's interest rate exposure results from
variable rate borrowings from commercial banks.  To mitigate
potential fluctuations in interest rates, Northern Border
Pipeline attempts to maintain a significant portion of its debt
portfolio in fixed rate debt.  Northern Border Pipeline also uses
interest rate swap agreements to increase the portion of its
fixed rate debt.  Since December 31, 2000, there has not been any
material change to Northern Border Pipeline's interest rate
exposure.

<PAGE>
                   PART II. OTHER INFORMATION

                NORTHERN BORDER PIPELINE COMPANY


ITEM 6. Exhibits and Reports on Form 8-K

(a)   Exhibits.

   None.

(b)   Reports on Form 8-K.

   None.


<PAGE>
                           SIGNATURES




   Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.


                              NORTHERN BORDER PIPELINE COMPANY
                              (A Texas General Partnership)

Date:  May 14, 2001           By: JERRY L. PETERS
                                  Jerry L. Peters
                                  Vice President, Finance and
                                   Treasurer