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.