Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 11/22/2003, Docket: RP03-398-004, Status: Effective

First Revised Sheet No. 229 First Revised Sheet No. 229 : Effective

Superseding: Original Sheet No. 229

GENERAL TERMS AND CONDITIONS

 

In the event a curtailment must be effected the smallest affected area

will be localized. Interruptible throughput will be curtailed first on the basis of

the lowest TI price first. Northern shall then curtail deliveries under LFT service

as set forth in A.1.(ii) above. Northern shall then curtail deliveries above the

level of other firm entitlement, including LFT service with no Limited Days

remaining for the month, attributed to the TBS or community in the Affected

Area before curtailing below such firm entitlement. If it is necessary to curtail

below firm entitlement, Northern will do so pro rata.

 

D. Emergency Exemption

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During periods of curtailment of Firm Service, upon notification by a firm

Shipper that such curtailment would result in an emergency situation where

relief from curtailment is required to forestall irreparable injury to life

or property, including environmental emergencies, Northern shall have the

right, in order to respond to such emergency, to exempt an

ultimate consumer or Shipper from curtailment under this Section. Upon receipt of

the request for exemption, Northern will adjust the curtailment of all other

shippers on a pro rata basis as necessary to deliver the quantities required

to avoid or mitigate the emergency situation. While Northern will make adjustments

in curtailment promptly upon granting the exemption, the

exempted Shipper will submit within twenty-four (24) hours to Northern a

sworn statement, including a detailed verification of the emergency

situation and the ultimate customer(s) involved and the precise volume

delivered to such consumer or consumers. In addition, the sworn statement

must attest as follows:

 

(i) said Shipper is serving end users who would suffer an irreparable

injury to life or property, including environmental emergencies, if

curtailed;

 

(ii) said Shipper has discontinued service to its interruptible customers

including Shipper's own interruptible use, and has taken all other

actions consistent with prudent operations to cope with the emergency;

 

(iii) said Shipper has not relied on interruptible transportation to serve

the end users referenced in (i) above at the time of curtailment;

 

(iv) said Shipper has not relied on purchases of interruptible gas to serve

the end users referenced in (i) above at the time of curtailment; and

 

(v) said Shipper at the time of curtailment has curtailed its customers not in

danger of suffering an irreparable injury to life or property, including

environmental emergencies.

 

The submission of an affidavit limits compensation for the gas taken by the

Shipper exempted from curtailment pursuant to this Section 19.D. above its

curtailment share to the liquidated damages pursuant to Section 19.F.1.

If no affidavit is submitted within the required period, or if the affidavit

is determined to contain false information, then the exempted Shipper will

be required to compensate the other curtailed Shippers according to Section

19.F.1. and will not be limited by said liquidated damages provision. Shipper will

also be subject to any DDVC's as set forth in Section 19. A.2.

 

Once Northern has called a capacity curtailment, Northern will not accept or

schedule any subsequent nomination in excess of a customer's pro rata

allocation as adjusted for this emergency exemption provision and for Section 19.E.

 

Northern shall not be held liable for granting an emergency exemption under

this section.