Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 05/24/2008, Docket: RP08-321-000, Status: Effective

Ninth Revised Sheet No. 136 Ninth Revised Sheet No. 136 : Pending

Superseding: Eighth Revised Sheet No. 136

RATE SCHEDULE FDD

Firm Deferred Delivery Service

 

E. Withdrawal Period

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Shipper shall be entitled to nominate a quantity of natural gas for withdrawal up to

its FDQ at an available designated storage point during the Withdrawal Period as

specified in Shipper's FDD Service Agreement. Upon acceptance of such nomination

by Northern, Northern shall make available at the storage point the quantity of

natural gas scheduled for FDD service. Shipper's total withdrawals at any storage

point may not exceed its total injections at such storage point. Shipper shall

specify in its nomination under a Firm or Interruptible Throughput Service Agreement

the storage point as the receipt point for such delivery. Deliveries to and receipts

from Shipper's account under this Rate Schedule shall not be subject to interruption

except as provided herein.

 

F. Account Balance Transfer

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To the extent allowed by the parameters of Shipper's FDD account(s), Shipper may, upon

advising Northern, transfer its Account Balances (1) among different Shippers' FDD

accounts, and/or, (2) between its own FDD accounts with no additional injection or

withdrawal fees, and no transportation fees provided that the Shipper's accounts are

held at the same storage point. Transfer of Account Balances between storage points,

either on one account or among multiple accounts, shall not be charged injection or

withdrawal fees but will be charged the applicable transportation fees. However,

account balance transfers between accounts are limited to account balances where the

Shippers have selected the same service type as provided in Paragraph 2.B. of this

Rate Schedule, i.e., Gas-in-Place, 4-Step or 3-Step. Further, the account balance

transfer shall not be allowed to create a negative account balance for any party

involved in the transaction.

 

G. FDD Consolidation Agreement

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One or more Shippers may consolidate FDD Service Agreements into a single consolidated

FDD Service Agreement administered by an agent/operator for purposes of nomination,

scheduling, balancing and invoicing. For purposes of this section, an agent/operator

could be a consolidating Shipper. The rights and obligations under the consolidated

FDD Service Agreement will be the same as the collective rights of the individual FDD

Service Agreements. FDD consolidation will not affect Northern's ability to provide

firm service to the consolidating Shippers or other firm Shippers.

 

Each consolidated FDD Service Agreement must have the same options pursuant to Section 2.B.

of this Rate Schedule.

 

Market-based-rate FDD Service Agreements may be consolidated with non-market-based rate FDD

Service Agreements, provided all of the underlying FDD Service Agreements and the

consolidated FDD Service Agreement have the same options pursuant to Section 2.B of this

Rate Schedule, as well as equivalent commodity rate components. In order to separately

account for all revenues associated with facilities used to provide market-based storage

services, reservation charge revenues under the consolidated FDD Service Agreement will be

accounted for based on each shipper's respective tariff and market-based reservation

charges, and capacity charge revenues under the consolidated FDD Service Agreement will be

accounted for based on each Shipper's respective tariff and market-based capacity charges.

Further, Northern will pro-rate commodity revenues based on each Shipper's respective

tariff and market-based FSQs.

 

Shipper and Shipper's agent/operator shall have executed an FDD Consolidation

Agreement with Northern in the form contained in this Tariff. The form of service

agreement used to facilitate the FDD Consolidation Agreement will be the Firm Deferred

Delivery Service Agreement under Sheet Nos. 441 and 441A. The rates and terms and

conditions of service shall be set forth in an Amendment.

 

Shipper agrees that the agent/operator will nominate under the consolidated FDD

Agreement, and neither Shipper nor agent will nominate under Shipper's individual FDD

Service Agreement.