Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 07/09/2007, Docket: RP07-483-000, Status: Effective

Tenth Revised Sheet No. 146 Tenth Revised Sheet No. 146 : Effective

Superseding: Ninth Revised Sheet No. 146

RATE SCHEDULE IDD

Interruptible Deferred Delivery Service

 

precedence over Shipper's rights to service herein.

 

Shippers shall nominate for injections and withdrawals pursuant to Section 6 below. Northern

shall schedule and allocate available IDD injection and withdrawal capacity based on price.

 

a) Northern may call an IDD inventory allocation when, in Northern's reasonable judgment, the

aggregate level of increased IDD activity could jeopardize the ability of Northern to meet

its firm storage requirements (an "IDD Inventory Allocation"). Northern may call a

"Positive IDD Inventory Allocation" when its storage inventory is approaching levels that

might jeopardize Northern's injection capacity for firm storage service. Northern may

call a "Negative IDD Inventory Allocation" when its storage inventory is approaching

levels that might jeopardize Northern's ability to provide withdrawals for firm storage

service. During an IDD Inventory Allocation Period, as defined below, IDD shippers shall

be entitled to nominate, and Northern shall undertake to schedule in accordance with the

General Terms and Conditions of its Tariff, IDD service. Individual Shipper's allowable

IDD balance (AIB) at the end of the IDD Inventory Allocation Period shall be equal to its

balance when the IDD Inventory Allocation Period commenced, or a percentage of such

balance as determined in Northern's discretion. No less than thirty (30) days prior to the

end of an IDD Inventory Allocation Period, Northern shall post to its website whether the

AIB is the balance when the Inventory Allocation Process commenced or a percentage

thereof. During a Positive IDD Inventory Allocation, an IDD Shipper's balance at the end

of the IDD Inventory Allocation Period may be less than its AIB. In addition, during a

Positive IDD Inventory Allocation, an IDD Shipper may nominate for injection to increase a

negative account balance to zero. During a Negative IDD Inventory Allocation, an IDD

Shipper's balance at the end of the IDD Inventory Allocation Period may be greater than

its AIB. In addition, during a Negative IDD Inventory Allocation, the IDD Shipper may

nominate for withdrawal to decrease a positive account balance to zero.

 

b) Northern will provide notice of an IDD Inventory Allocation at least twenty-four (24)

hours prior to the timely nomination deadline for the Gas Day on which the IDD Inventory

Allocation will commence, and such notice shall also state the Gas Day on which the IDD

Inventory Allocation will end (such period between the commencement date and end date to

be referred to as an "IDD Inventory Allocation Period"). Northern will post such notice

on its website. Northern may extend the IDD Inventory Allocation by posting a revised

notice of the extension on its website. Northern will also provide a grace period of one

day for each day that an IDD Shipper's nomination in compliance with the IDD Inventory

Allocation was unable to be scheduled by Northern during the last two weeks of such IDD

Inventory Allocation Period.

 

c) In the event an IDD Shipper does not comply with an IDD Inventory Allocation in accordance

with Section 4(a), above, at the end of the IDD Inventory Allocation Period, when Northern

has declared a Positive IDD Inventory Allocation, any positive balance remaining in

Shipper's IDD Account in excess of the AIB, after any grace period provided above, if

applicable, shall become the property of Northern at no cost to Northern, free and clear

of any adverse claims. If Northern called a Negative IDD Inventory Allocation, then any

negative balance remaining in Shipper's IDD Account less than the AIB, after the grace

period provided above, if applicable, shall be invoiced to the Shipper at 150% of the

Index Price as defined below in Section 5.c.

 

In the event scheduled IDD volumes must be curtailed, such volumes shall be curtailed on the

basis of price.

 

For the purposes of allocating capacity, shippers willing to pay more than the maximum tariff

rate will be considered to be paying the maximum tariff rate.