FORM 10-K

69

MDU RESOURCES G ROUP, INC.

Item 8. Financial Statements and Supplementary Data

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of MDU Resources Group, Inc. is responsible for establishing and maintaining adequate internal control over

financial reporting as defined in Rules 13a-15(f) under the Securities Exchange Act of 1934. The Company's internal control

system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial

statements for external purposes in accordance with generally accepted accounting principles.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined

to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections

of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of

changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2007.

In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the

Treadway Commission (COSO) in Internal Control­Integrated Framework.

Based on our evaluation under the framework in Internal Control­Integrated Framework, management concluded that the

Company's internal control over financial reporting was effective as of December 31, 2007.

The effectiveness of the Company's internal control over financial reporting as of December 31, 2007, has been audited by

Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report.

Terry D. Hildestad

Vernon A. Raile

President and Chief Executive Officer

Executive Vice President, Treasurer

and Chief Financial Officer