Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 06/07/2008, Docket: RP08-109-000, Status: Suspended

Eighth Revised Sheet No. 138 Eighth Revised Sheet No. 138 : Suspended

Superseding: Seventh Revised Sheet No. 138

RATE SCHEDULE FDD

Firm Deferred Delivery Service

 

3. FIRM STORAGE QUANTITY (FSQ)

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The FSQ shall be the maximum (or minimum) quantity of natural gas specified in Shipper's

Service Agreement that Northern is obligated to accept for service on a firm basis.

Shipper shall not be permitted to exceed the totals established in its Service Agreement

for any period or for any day except as permitted in this Section.

 

Shipper's FSQ shall be specified as the maximum FDD Account Balance quantity. Periodic

maximum and minimum Account Balance parameters and daily maximum quantities based on the

Shipper's Injection and Withdrawal Periods shall be set forth in Appendix A to Shipper's

Service Agreement.

 

Unless otherwise agreed, Shipper is required to comply with its periodic Account Balance

parameters. If operationally feasible, Northern may agree to retain for a subsequent

period any quantities remaining in the FDD account after the Withdrawal Period. Such

volumes will be considered Rollover volumes. Such volumes shall be subject to the Annual

Rollover Charge and will be included in the subsequent period's total contract quantity.

The rollover quantity cannot exceed the next year's FSQ. If the FDD Service Agreement is

not renewed or there are Rollover volumes in excess of the next year's FSQ, these Rollover

volumes must be withdrawn in accordance with the provisions of Sections 5.b. and 5.c. of

Rate Schedule IDD.

 

Authorized Overrun

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Should Shipper, or its Designee, desire to nominate quantities for firm storage

in excess of its current FDQ, such quantities shall be scheduled

pursuant to the terms and conditions of Rate Schedule IDD if capacity is

available, and will be subject to the authorized overrun charge. Northern

shall have the right to interrupt all or part of the excess quantity. Northern shall

notify Shipper, or its Designee, of such interruption.

 

Account Balance quantities that are less than the January 31 Account Balance

parameters set forth in the Shipper's Service Agreement are subject to the authorized

overrun charge. Account Balance quantities that are greater than the August 31 and

March 1 Account Balance parameters set forth in the Shipper's Service Agreement are

subject to the authorized overrun charge. However, as provided in Paragraph 2.B., 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.

 

Authorized Reductions

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In the event that Northern has allocated storage injections during the Withdrawal

Period, FDD Shippers shall be allowed to reduce scheduled firm withdrawal quantities

during the last nomination cycle of the Gas Day by an amount up to a quantity equal

to the aggregate Daily Maximum Injection FDQ during the Withdrawal Period as shown

on Sheet No. 135B. In the event that the difference between the total firm

withdrawal quantity nominated during the last nomination cycle compared to the total

firm withdrawal quantity scheduled as the FDD Shipper's daily firm withdrawal rights

during the previous cycle is greater than the quantity equal to the aggregate Daily

Maximum Injection FDQ, Northern shall allocate the firm reductions pro-rata.

 

In the event that Northern has allocated storage withdrawals during the Injection

Period, FDD Shippers shall be allowed to reduce scheduled firm injection quantities

during the last nomination cycle of the Gas Day by an amount up to a quantity equal

to the aggregate Daily Maximum Withdrawal FDQ during the Injection Period as shown

on Sheet No. 135B. In the event that the difference between the total firm

injection quantity nominated during the last nomination cycle compared to the total

firm injection quantity scheduled as the FDD Shipper's daily firm injection rights

during the previous cycle is greater than the quantity equal to the aggregate Daily

Maximum Withdrawal FDQ, Northern shall allocate the firm reductions pro-rata.