Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 04/17/2010, Docket: RP10-501-000, Status: Effective
12 Revised Sheet No. 135 12 Revised Sheet No. 135
Superseding: 11 Revised Sheet No. 135
RATE SCHEDULE FDD
Firm Deferred Delivery Service
2. APPLICABILITY AND CHARACTER OF SERVICE
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Service under this Rate Schedule shall be firm up to Shipper's FSQ as specified in Shipper's
FDD Service Agreement. This Rate Schedule shall provide Shipper the ability to have natural
gas quantities transported to or received from Northern on a deferred basis under Rate
Schedules for Northern's Firm or Interruptible Throughput Services.
Northern shall annually evaluate its capability to provide service under this Rate Schedule and
shall reflect any changes in the amount and length of service it may provide by filing such
changes with the Commission. In such event, the shipper shall have the right to reestablish
its FDD quantity related to such change.
A Shipper is permitted to combine multiple FDD Agreements into a single FDD Agreement to the
extent that the individual Agreement's rates, terms and conditions can be distinctly maintained
within Northern's contracting and billing systems. Shipper may also combine its FDD Service
Agreement(s) with other FDD Shippers under an FDD Consolidation Agreement pursuant to Section
2.G. of this Rate Schedule.
A. Annual Cycle Quantity
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Northern shall offer an annual cycle quantity for service under this Rate Schedule of 59.3
Bcf. Additionally, Northern may acquire third party storage service for availability of
service under this Rate Schedule in accordance with Section 55 of the GENERAL TERMS AND
CONDITIONS of this Tariff. If Northern has additional annual cycle quantity available,
Northern will post such capacity on its website.
B. Types of Service
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Service under this Rate Schedule shall be available under one of the following options. A
Shipper with an FDD Service Agreement with a term of two (2) years or more may select from
these options on an annual cycle basis, provided, 1) Shipper shall not be allowed, unless
mutually agreeable to both parties, to change between options within a cycle year, and
2) Shipper must maintain the same maximum FDD Account Balance and the same Maximum Daily
Withdrawal quantity, unless otherwise agreed to by Northern.
I. Gas-In-Place Option
II. 4-Step Withdrawal Option
III. 3-Step Withdrawal Option
To the extent monthly and daily capacity remains available after Northern has satisfied
requests for service under the three options, Northern may, from time to time, offer
service under this Rate Schedule on a partial-cycle basis. Northern will offer such
service by posting a notice on its Internet website which requests bids for partial-cycle
FDD Service. Northern will provide such service on a not unduly discriminatory basis and
only if such service does not adversely affect Northern's obligation to existing Shippers
receiving FDD service.
Options
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Under each of the options that follow, Shipper shall be required to allocate its injection
and withdrawal quantities as a pro rata share of the total aggregate FDD contract
quantities, based on the Shipper's total FSQ or FDQ and the storage option election. A
Shipper is entitled to a minimum of the injection and withdrawal parameters that result
from using the FDD annual cycle quantity available in the three (3) types of service listed
above. Account Balance quantities that are less than or greater than the Account Balance
parameters contained in Shipper's Service Agreement shall be subject to the authorized
overrun charge as fully described in Section 3. below. In the event that the Shipper has
multiple FDD Service Agreements, Northern will net the Shipper's FDD account balances prior
to determining the authorized overrun charge, provided that the Shipper has selected the
same service type for each of the FDD Service Agreements. Should Shipper nominate
injection or withdrawal quantities which would preclude Shipper's ability to meet
subsequent periodic Account Balance parameters or subsequent Injection Period or Withdrawal
Period quantities, Northern shall have the right to refuse to schedule such quantities.