Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 11/01/2009, Docket: RP10-97-000, Status: Effective

Original Sheet No. 66B.34 Original Sheet No. 66B.34

 

90/ For the period 11/01/2009 through 03/31/2010, Shipper shall pay a total daily reservation rate for the

contract MDQ equal to a base rate of $0.10/DTH/day plus the arithmetic value obtained from the

formula [(A) times (B) times (C)] where (A) = The Midpoint price from "Gas Daily" at Northern,

Ventura minus the Midpoint price from "Gas Daily" Northern, Demarc minus $0.12 but in no event less than

zero; (B) = The targeted % of primary to alternate (P to A) and alternate to primary (A to P) volumes

scheduled through Oakland for the Timely Nomination Cycle as posted for each gas day, except in

the event of another mainline group Allocation between Demarc and Ventura; and (C) =0.50.

In the event of another mainline group Allocation between Demarc and Ventura, B)

shall equal the greater of (i) the targeted % of P to A and A to P volumes scheduled through the

applicable mainline group(s) between Demarc and Ventura for the Timely Nomination Cycle as posted for each

gas day or (ii) the % of actual volumes scheduled on this contract to delivery points included in the

Oakland Allocation Group during the Timely Nomination Cycle. The monthly rate will be the sum

of all daily rates from the formula above.

 

In addition to the above reservation rates, Shipper shall (i) pay a commodity rate equal to the

maximum commodity rate provided in Northern's FERC Gas Tariff as revised from time to time (these

rates include the applicable Annual Charge Adjustment and electric compression charges), (ii)

provide any applicable fuel use and unaccounted for, and (iii) pay all FERC approved surcharges

applicable to the service provided hereunder.

 

In addition, for overrun service, Shipper shall pay the maximum overrun rate set forth in

Northern's FERC Gas Tariff.

 

The rate stated above is applicable to the receipt and (or) delivery points (POI) listed below.

Shipper agrees that if any other receipt or delivery points are used either on a primary or

alternate basis, the rates set forth herein will not be applicable and Shipper shall pay the

higher of the rate set forth above or Northern's maximum tariff rates for the entire contract for

the month any points not listed below are used.

 

Primary Receipt Points: NNG Field/MKT Demarcation Primary Delivery Points: NGPL/NNG Glenwood

 

Alternate Delivery Points: Demarc Deferred Delivery Point and delivery points included in the Oakland

allocation group.