Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 11/01/1993, Docket: RS92- 8-004, Status: Effective
Original Sheet No. 244 Original Sheet No. 244 : Effective
GENERAL TERMS AND CONDITIONS
Nothing contained herein prevents Northern from buying out an Account No. 858
agreement at any time.
23A. UNASSIGNED/UNCONVERTED UPSTREAM CAPACITY
This Section will apply to any unconverted/unassigned upstream Third Party
Northern's Section 7(c) unassigned firm capacity rights under an upstream third party
transportation contract, which are not eligible for capacity release, shall, to the
extent such use is consistent with Northern's obligations under the related gas
supply contracts, be deemed to be available to Shippers on a firm or interruptible
basis as though such capacity were on Northern's system. TF, TFX or TI Shippers, or
Northern, as merchant, who use unassigned/unconverted upstream capacity will have the
following priorities to the capacity and will pay the following rates:
(1) Any Shipper purchasing supply which was or continues to be subject to a firm
purchase obligation on the part of Northern shall have first priority to the
unassigned/unconverted upstream capacity for nomination and scheduling purposes.
The Shipper will pay a rate equal to the upstream pipeline demand and commodity
charges, plus fuel. This priority will also be available to Northern in order
for Northern to fulfill a firm purchase obligation with respect to unassigned
supply behind the unassigned/unconverted upstream capacity. In the event
Northern utilizes the upstream capacity, Northern will credit the below market
cost of the supply to the Account No. 858 Stranded Cost Recovery Mechanism. The
below market cost will be determined as follows: the market price, defined as
the Mid-Continent Index Price in Section 25 of the GENERAL TERMS AND CONDITIONS
of this Tariff, less the cost of the supply.
(2) TF Shippers who are assessed an Account No. 858 Stranded Cost surcharge pursuant
to Section 24 of the GENERAL TERMS AND CONDITIONS of this Tariff who use the
unassigned/unconverted upstream capacity will pay a rate equal to the commodity
charge, plus fuel applicable to the upstream capacity. If more capacity is
requested by said TF Shippers than is available, the TF Shipper willing to pay
the highest proportion of the demand charge applicable to the upstream capacity
will have priority to the capacity.
(3) TF Shippers who are not assessed an Account No. 858 Stranded Cost surcharge will
have the next priority to the unassigned/unconverted upstream capacity and will
pay the daily demand rate equivalent and commodity charges, plus fuel applicable
to the upstream capacity.
(4) TI Shippers will have the lowest priority to the unassigned/unconverted upstream
capacity and will pay the one hundred percent (100%) load factor equivalent of
the demand and commodity charges, plus fuel applicable to the upstream capacity.
(5) In (1) through (4) above, if the Shippers are unwilling to pay the maximum rate,
then priority will be granted to the Shipper paying the highest rate.
All dollars collected under this section will be credited to the Stranded Account
No. 858 Cost Recovery Mechanism.