Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 08/16/2010, Docket: RP10-976-000, Status: Effective

Sixth Revised Sheet No. 116 Sixth Revised Sheet No. 116

Superseding: Fifth Revised Sheet No. 116

 

RATE SCHEDULE TFX

Firm Throughput Service

 

1. AVAILABILITY.

 

This Rate Schedule is available for transportation of natural gas pursuant to a

Firm Throughput Service by Northern Natural Gas Company ("Northern") under the

following terms and conditions:

 

(a) Northern determines that sufficient capacity exists to provide the Firm

Throughput Service requested by Shipper;

 

(b) Shipper has executed a Firm Throughput Service Agreement ("TFX Agreement") of

the form contained in Northern's FERC Gas Tariff;

 

(c) the throughput service shall be subject to all of the terms and conditions

contained in this Rate Schedule and the GENERAL TERMS AND CONDITIONS of this

Tariff; and

 

(d) the transportation of natural gas within the MDQ under the throughput service

shall be on a firm basis.

 

(e) Shipper who has a TFX Agreement shall also be eligible to purchase from

Northern no-notice throughput service pursuant to Rate Schedule SMS-System

Management Service.

 

2. APPLICABILITY AND CHARACTER OF SERVICE.

 

Subject to the provisions of this Rate Schedule TFX and the GENERAL TERMS AND

CONDITIONS of this Tariff, service within the MDQ rendered under a TFX Agreement

shall be on a firm basis of a transportation quantity referred to as the Maximum

Daily Quantity ("MDQ"). MDQ is the total volume of natural gas specified in the

TFX Agreement that Northern is obligated to transport on a daily basis from the

Point(s) of Receipt to the Point(s) of Delivery.

 

Shipper shall have the option to request firm throughput service (i) solely for

the Market Area, (ii) solely for the Field Area, or (iii) a combined service for

both the Market and the Field Area, or (iv) solely in the Gulf Coast Area. The

Shipper's ability to utilize primary and alternate receipt and delivery points is

determined by which option is chosen by the Shipper. A Shipper with a combined

Market and Field Area service agreement may not transfer a primary firm receipt or

delivery point from the Field Area to the Market Area for the term of the TFX

agreement.

 

A Shipper is permitted to combine multiple TFX Agreements into a single TFX

Agreement to the extent that the individual Agreement's rates, terms and

conditions can be distinctly maintained within Northern's contracting and billing

systems.

 

Subject to the terms of this paragraph, a Shipper may select the full requirements

option. Under such option, a Shipper will agree to take its full requirements

from Northern for the service territory currently served by the existing

entitlement and the growth associated with such service territory and agree not to

physically bypass Northern for such territories for the term of the agreement. In

exchange for such agreement, Shipper and Northern may mutually agree to increase

the Shipper's contract demand at agreed upon intervals, to construct new

facilities if necessary and to exercise commercially reasonable best efforts to

secure approvals for such construction. To the extent new facilities would need to

be constructed to meet Shipper's growth requirements, Northern will hold open

seasons for any construction required and will provide service to any requesting

Shipper whose request meets the economic feasibility requirements for the

construction of facilities.