Northern Natural Gas Company
Fifth Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 11/01/1993, Docket: RS92- 8-004, Status: Effective
Original Sheet No. 243 Original Sheet No. 243 : Effective
GENERAL TERMS AND CONDITIONS
23. ASSIGNMENT OF THIRD-PARTY TRANSPORTATION CAPACITY
A. General. Northern shall make all of its third-party transportation capacity not
subject to the Reverse Auction as described in Section 22, or any unassigned capacity
at the conclusion of the Reverse Auction, available for assignment. All Third-Party
Capacity, as defined below, will be available for assignment.
B. If a Shipper takes assignment of a transportation agreement between Northern and a
Third-Party, such Shipper shall be responsible for all obligations thereunder related
to such contract from the effective date of the assignment. Assignment under this
Section excludes the gas supply behind the capacity. For purposes of this Section
23, "Third-Party Capacity" shall include transportation capacity that Northern holds
(or, in the case of TransCanada Pipe Line Limited or Many Islands Natural Gas, held
by others and is subject to direction by Northern) on the following pipelines: UT
Offshore System, ANR, Columbia Gulf, HIOS, Sea Robin, Texas Eastern, Trunkline,
Questar Pipeline Company, Wyoming Interstate Company, Ltd., Trailblazer Pipeline
Company, Great Lakes Gas Transmission Limited Partnership, Many Islands Natural Gas
(Canada) Limited, TransCanada Pipe Line Limited and Northern Border Pipeline.
C. Northern shall offer assignment of Third-Party Capacity as follows:
1) First, each Shipper that was a sales customer that has converted to firm
throughput (converted sales customer) will be allowed to take its pro rata share
of any Third-Party Capacity.
2) Any Third-Party Capacity not taken by converted sales customers will be made
available to any creditworthy party, excluding Northern as merchant. In the event
more than one party wishes to take assignment of the same Third-Party Capacity,
Northern shall allocate the capacity on a pro rata basis.
3) All unassigned Third-Party Capacity costs will be treated as Stranded Account No.
858 Costs as described in Section 24 of these GENERAL TERMS AND CONDITIONS.
D. Not withstanding C above, to the extent there is any commitment to permit a specific
party to take assignment of third party capacity then Northern shall give priority to
such party prior to offering such third party capacity for assignment. Additionally,
capacity will only be made available for assignment to the extent that assignment is
consistent with Northern's obligations under the related unassigned gas supply
contracts, and to the extent there is a commitment to bundle the Third-Party Capacity
with any associated gas supply contract, then Northern shall give priority to any
party willing to take assignment of the supply contract and the related Third-Party
Capacity as a package. Assignments, releases or other use of the Canadian and Great
Lakes capacity that historically has been used to transport Northern's Montana
supplies are subject to any pre-existing contractual right which a party may have
with respect to all or a portion of such capacity, including the right to use that
capacity and to take assignment of it.
To the extent that any portion of such gas supply contract remains unassigned,
Northern will give preference in the assignment of the related Third-Party Capacity
to any supplier which has the right to take assignment of such Third-Party Capacity
under Northern's gas supply contract.
E. Northern will convert remaining unassigned Third-Party Capacity to Part 284
transportation where such conversion is cost effective and to the extent it is
consistent with Northern's obligations under its unassigned gas supply contracts.
In such event, Northern will exercise any capacity release rights it may have with
respect to the Third-Party Capacity to mitigate Stranded Account No. 858 Costs.
In the event any capacity is not converted to Part 284 transportation, such capacity,
whether held in Northern's name or held on behalf of Northern by others, shall be
treated as an extension of Northern's system for use pursuant to Section 23A hereof.