Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 04/17/2010, Docket: RP10-502-000, Status: Effective

Seventh Revised Sheet No. 119 Seventh Revised Sheet No. 119

Superseding: Sixth Revised Sheet No. 119

 

RATE SCHEDULE TFX

Firm Throughput Service

 

3. OFFERING OF TFX SERVICE.

 

To initiate service under this Rate Schedule TFX, a valid request must be submitted in

accordance with Section 26, "Requests for Service" and Section 27, "Information

Required for a Request for Service," of the GENERAL TERMS AND CONDITIONS of this

Tariff.

 

The minimum level of MDQ applicable to a TFX Agreement under this

Rate Schedule shall be 50 MMBtu per day.

 

4. TERM OF TFX AGREEMENT.

 

The TFX Agreement must be executed by Shipper prior to commencement

of service.

 

The term of service shall be negotiated. There shall not be a minimum term. The term

shall be set forth in the TFX Agreement. TFX Agreements entered into pursuant to the

New Service Settlement and prior to implementation of Order No. 636 shall retain any

unilateral rollover rights contained therein.

 

Northern and Shipper may agree to different termination dates for specified volumes

within the same Service Agreement on a not unduly discriminatory basis.

 

Northern and Shipper may agree, on a not unduly discriminatory basis, to contract

extensions, including evergreens, rollovers and other extensions.

 

Northern and Shipper may agree to reduction rights. If Northern and Shipper are

unable to agree, Shipper shall be entitled to the following: In the event a "firm

customer of Shipper" served by use of Shipper's firm throughput entitlement on

Northern arranges either directly or indirectly through an upstream supplier for

incremental firm service with Northern for the remaining term of the Shipper's Service

Agreement in lieu of taking assignment from Shipper for such firm service, Northern

agrees to reduce Shipper's firm entitlement by an amount determined by Shipper that is

no greater than the level of contract demand of incremental firm service arranged for

with Northern by the "firm customer of Shipper" (i.e., Northern is kept revenue

neutral except to the extent Northern discounts to the customer), provided however,

Shipper must first submit an affidavit to Northern verifying that such customer was

being served by use of Shipper's firm throughput entitlement on Northern. Reductions

by Shipper will not be allowed if the "firm customer of Shipper" arranges either

directly or indirectly through an upstream supplier for a non-incremental service

(i.e., capacity release) on Northern or for interruptible service (i.e., TI) on

Northern.

 

New TFX Agreements

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1) TFX Agreements at maximum rates with a term of twelve (12) or more consecutive

months of service or for a term of more than one (1) year for service not available

for twelve consecutive months and TFX Agreements at discounted rates entered into

prior to March 27, 2000, with a term equal to or greater than one (1) year, shall

have a guaranteed Right of First Refusal as provided in Section 52 of the GENERAL

TERMS AND CONDITIONS of this Tariff. Northern and Shipper may mutually agree

to include ROFR rights in other TFX Agreements on a not unduly discriminatory

basis.

 

2) TFX Agreements with a term up to, but not including, twelve (12) consecutive months

of service or for one (1) year or less, shall not be eligible for the Right of

First Refusal process. The service will be automatically abandoned upon expiration

of the term.