Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 05/27/2008, Docket: RP08-326-000, Status: Effective

Third Revised Sheet No. 267 Third Revised Sheet No. 267 : Pending

Superseding: Substitute Second Revised Sheet No. 267

GENERAL TERMS AND CONDITIONS

 

18. COORDINATION

 

Company shall make such arrangements with all Persons, including the

Nominating Party and the Interconnected Party(s), as may be required

to ensure proper coordination of the gas control and other operations

of Company and interconnecting facilities and as may be desirable to

promote the efficient operation of Company's pipeline system. Such

arrangements may include provision for consultation among Company and

such Persons and mutual inspection of relevant records.

 

19. FACILITIES POLICY

 

Unless otherwise agreed to by the parties, Company will not be required

to build, modify, operate, own, or contribute to the cost of building or

operating any facilities including but not limited to pipeline facili-

ties, taps, metering facilities, valves, looping and/or compression

facilities, to Shippers or other Persons, which are not operationally or

economically feasible. In the event, Company agrees to either build,

operate, own, or contribute to the cost of building any such facilities,

Company shall do so on a not unduly discriminatory basis.

 

19.1 Unless otherwise agreed to by Company, Shipper will be

required to reimburse Company, on mutually agreeable terms,

for costs associated with constructing and operating the

facilities. Such mutually agreed upon reimbursement may be

in the form of an incremental rate, an operations fee, a lump

sum payment, or a mutually agreed upon method, including

reimbursement for any associated tax effects. Company may

waive this requirement on a not unduly discriminatory basis.

 

19.2 Company may pay or contribute to the cost of building or

operating facilities requested by Shippers or other Persons when

Company determines that by doing so, it will result in an

economic benefit, or determines that the project is economically

neutral to Company. Company may conclude that a portion of the

facilities are economically beneficial. Company will evaluate

each prospective project under this policy based upon the

incremental cost of service and the incremental revenues which

Company estimates will be generated as a result of the project.

When estimating incremental revenues to be generated, Company

will base those revenues upon transportation rates it expects to

be able to charge, net of any surcharges, and the incremental

volumes or firm service contracts that will result from the

project. Company may consider volumes or firm service contracts

to be incremental if the volumes or firm service contracts that

will be transported or provided respectively would not otherwise

flow through, or be contracted for firm service on Company's

system.