EXHIBIT 99.01

KPMG


Two Central Park Plaza Suite 1501
Omaha, NE 68102

233 South 13th Street, Suite 1600
Lincoln, NE 68508-2041

                          Independent Auditors' Report

Northern Border Partners L.P.:

We have audited the accompanying consolidated balance sheets of Northern Border
Partners L.P. (a Delaware limited partnership) and Subsidiaries as of December
31, 2001 and 2000, and the related consolidated statements of income,
comprehensive income, cash flows, and changes in partners' equity for each of
the years in the three-year period ended December 31, 2001. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Northern Border
Partners L.P. and Subsidiaries as of December 31, 2001 and 2000, and the results
of their operations and their cash flows for each of the years in the three-year
period ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States of America.

As discussed in note 7 to the consolidated financial statements, Northern Border
Partners L.P. and Subsidiaries adopted the provisions of Statement of Financial
Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and
Hedging Activities, which was subsequently amended by SFAS No. 137 and SFAS No.
138.


                                       /s/ KPMG LLP



September 6, 2002 Omaha, Nebraska








KPMG


Two Central Park Plaza Suite 1501
Omaha, NE 68102

233 South 13th Street, Suite 1600
Lincoln, NE 68508-2041


              Report of Independent Public Accountants on Schedule

Northern Border Partners, L.P.:

We have audited in accordance with auditing standards generally accepted in the
United States of America, the consolidated financial statements of Northern
Border Partners, L.P. and Subsidiaries as of December 31, 2001 and 2000 and for
each of the years in the three-year period ended December 31, 2001 included in
this Form 10-K, and have issued our report thereon dated September 6, 2002. Our
audits were made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The schedule of Northern Border Partners L.P. and
Subsidiaries listed in Item 14 of Part IV of this Form 10-K is the
responsibility of the Company's management and is presented for purposes of
complying with the Securities and Exchange Commission's rules and is not part of
the basic financial statements. This schedule has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, fairly states in all material respects, the financial data required to
be set forth therein in relation to the basic financial statements taken as a
whole.

                                       /s/ KPMG LLP



September 6, 2002 Omaha, Nebraska