Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 06/01/2008, Docket: RP08-262-002, Status: Effective

Substitute Eighth Revised Sheet No. 226 Substitute Eighth Revised Sheet No. 226

Superseding: 2 Substitute 7 Revised Sheet No. 226

 

GENERAL TERMS AND CONDITIONS

 

19. LIMITATIONS OF NORTHERN'S OBLIGATION TO

PROVIDE FIRM SERVICES

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A. General

 

1. In the event a curtailment must be effected, the smallest affected area will be

localized beginning with individual points, followed by an operational zone,

Market/Field Area, and up to the entire system, in that order. Curtailment will

proceed in the following sequence:

 

(i) TI will be curtailed on the basis of lowest price first.

 

(ii) LFT service with Limited Days remaining for the month.

a. lowest price will be limited first;

b. greater number of remaining Limited Days second;

c. and then pro rata.

 

(iii) Firm service, including LFT with no Limited Days remaining for the month, at

primary or alternate points will then be curtailed on a pro rata basis.

 

2. If Shipper takes gas in excess of the volume of gas authorized for delivery on any

day Northern has ordered reduced deliveries, Shipper shall be subject to a penalty

for takes of gas in excess of the authorized volume, without any tolerance. The

penalty shall be equal to the Punitive DDVC rate set forth on Sheet No. 53.

Penalty revenues shall be credited to Shippers in accordance with Section 57 of

the GENERAL TERMS AND CONDITIONS of this Tariff.

 

3. If TI receipt point volumes continue to flow during a curtailment at Northern's

request, such volumes during such curtailment will not be subject to receipt point

scheduling penalties.

 

4. Northern shall also have the right to reasonably limit supply service and/or

reduce receipts or deliveries of natural gas in conjunction with the throughput

capacity under Throughput Service Agreements on part or all of Northern's system

according to the above 1) to permit maintenance, repair, overhaul, replacement or

construction of pipelines, compressors, metering, regulating and other production,

and transmission facilities and equipment; 2) to assure the availability of

capacity for receipts or deliveries equitably under Northern's firm Rate Schedules

included in this Tariff in cases where natural gas does not conform to the quality

specifications contained in the Tariff. Northern shall provide Shipper reasonable

advance notice of routine maintenance, repair, overhaul or replacement.

 

5. Unless Northern and Shipper mutually agree to limit hourly takes to less than 6.3%

for incremental entitlement, Northern shall have the right on a nondiscriminatory

basis to restrict the hourly takes of gas by the Shipper in the Market Area to

6.3% of the entitlement plus any excess volumes authorized under the Firm Service

Agreement. Such restrictions may be ordered by Northern, when necessary in

Northern's judgment to maintain operational integrity, and shall be complied with

by the Shipper. Electronic flow measurement and flow control equipment is

required at any point where Northern and a Shipper have agreed to lower hourly

takes. The hourly take rate will be applicable to the primary point(s) on the

Shipper's Service Agreement only. If the Shipper nominates an alternate point

(including capacity release) the Shipper may retain the more restrictive

contractual hourly flow limitation if capacity is available at the point.

Alternatively, Northern and the Shipper may mutually agree to a different hourly

flow limitation at the alternate point. In the event a Shipper that has agreed to

limit hourly takes to less than 6.3% for incremental entitlement does not comply

with Northern's order to restrict hourly takes, Shipper shall pay a penalty equal

to the Punitive DDVC charge set forth on Sheet No. 53. Penalty revenues shall be

credited to Shippers in accordance with Section 57 of the GENERAL TERMS AND

CONDITIONS of this Tariff.

 

In the Field Area, Northern and Shipper may mutually agree to hourly takes of

4.16% of the new or extended entitlement at the delivery point, subject to the

necessary construction of facilities and Northern being operationally capable of

providing the hourly flow rate.