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 Fifth Revised Sheet No. 227 Substitute Fifth Revised Sheet No. 227

Superseding: Substitute Fourth Revised Sheet No. 227

 

GENERAL TERMS AND CONDITIONS

 

To the extent construction of facilities is required to deliver gas at an hourly rate

of 4.16%, Shipper shall be responsible for reimbursement of the associated costs. Northern

and Shipper may mutually agree upon the method of reimbursement. Further, electronic flow

measurement and flow control equipment is required at any point where Northern and a Shipper

have agreed to such hourly takes. Northern will evaluate any such requests for negotiated

hourly flow rates on a not unduly discriminatory basis.

 

6. Upon reasonable request of Shipper, Northern shall furnish information and copies of

affidavits with respect to curtailments of Firm Service ordered under the provisions of this

Section.

 

7. In the event end use curtailment is reimposed by an order of the Federal Energy

Regulatory Commission or by court order, the provisions in this Section 19 pertaining to

pro rata curtailment will be superseded and curtailment shall be effected on an end use

basis.

 

8. For purposes of Section 19, Operating integrity will be determined using the following

criteria: Weather forecast for the Market Area and for the Field Area; system conditions

consisting of line pack, overall projected pressures at monitored locations, and storage

field conditions; facility status defined as horsepower utilization and availability; and

overall send-out projection and availability.

 

B. Supply

 

1. Receipt Point Supply Shortfall

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If Northern experiences underdeliveries of quantities of gas into Northern's system which

render Northern unable to meet its total throughput obligations and affect the operating

integrity of its system, Northern shall have the right, after providing as much advance

notice as possible, to interrupt deliveries in the affected area until Northern is able

to identify the Producer(s) or Shipper(s) who have failed to tender volumes equal to the

volumes nominated and scheduled. Curtailment will be effected in the following sequence

after Northern has made a diligent effort to identify the deficient source:

 

(a) If the deficient source(s) are known, Northern will curtail the corresponding

market.

 

(b) If the deficient source(s) are unknown, the smallest affected area at the receipt point

will be localized and curtailed in the following sequence:

 

(i) Interruptible throughput will be curtailed on the basis of the lowest TI 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 pro rata.

 

Corresponding markets will be curtailed in the same sequence described in

paragraphs (b) (i)-(iii) above.

 

Receipt point volumes which are independently verifiable by Northern will not be

subject to the receipt point supply shortfall provisions.

 

After receiving notification pursuant to this section, shippers who are able to confirm

their deliveries to Northern will be permitted to resume their service in a reasonable

period of time after such confirmation. Confirmation shall mean that Northern is able,

in good faith, to determine that the shipper's gas is being received, or shipper has

provided to Northern an affidavit in a form acceptable to Northern confirming their

deliveries.

 

The foregoing provisions shall not relieve Northern from responsibility for acts of

negligence or willful misconduct in implementing curtailment.