Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 09/29/2010, Docket: RP10-1109-000, Status: Effective

13 Revised Sheet No. 259 13 Revised Sheet No. 259

Superseding: 12 Revised Sheet No. 259

 

GENERAL TERMS AND CONDITIONS

 

The Explicit Confirmation process requires that the Confirming Party respond to a Request

for Confirmation or initiate an unsolicited Confirmation Response. Absent mutual agreement

to the contrary, Explicit Confirmation is the default methodology.

 

The total nomination at the Point(s) of receipt, less designated Fuel, if any, must equal

the nominations at the Point(s) of Delivery. For in-kind fuel reimbursement methods,

Northern will not reject a nomination for reasons of rounding differences due to fuel

calculations of less than 5 dekatherms.

 

The Point of Receipt for all gas to be purchased from Northern shall be identified as the

furthest point upstream where gas enters Northern-owned facilities.

 

A package ID is a way to differentiate between discrete business transactions. When used,

Package ID should be supported for nominating and scheduling; mutually agreed between the

applicable parties for allocations and imbalance reporting; supported for invoicing (sales

and purchase); and mutually agreed for transport invoicing. Use of the Package ID is at

the discretion of the service requester, and if sent, should be accepted and processed by

the service provider.

 

For nomination purposes, a Point of Delivery may be defined as a currently established

Operational Zone in the Market Area or Argus Zone in the Field Area that is applicable for

deliveries to the facilities of a single LDC as well as delivery points in the same

Operational Zone serving an electric generation plant where the LDC has a tolling

arrangement. In the event that the electric generation plant is located behind the

facilities of another LDC, then both LDCs and Northern must enter into an end-user

allocation agreement as provided for in Section 30.E. of the GENERAL TERMS AND CONDITIONS

of this FERC Gas Tariff. All zone delivery points must contain TBS specific entitlements.

The total of the TBS specific entitlements must equal the zone delivery point entitlement;

however, daily nomination and scheduling may be made by a zone nomination. An LDC may

aggregate delivery points that serve power plants in an operational zone into a sub-zone

for DDVC and imbalance purposes; provided, however, the shipper must nominate such delivery

points on an individual basis. Shipper must use commercially reasonable efforts to provide

one-hour notification prior to flow to Northern's Gas Control Department of expected

volumes and burn rate.

 

Non-telemetered Operational Zone. A Shipper may request establishment of an Operational

Zone delivery point consisting of the non-telemetered delivery points of a single LDC.

Shippers with a single non-telemetered delivery point are also eligible for participation.

Non-telemetered delivery points eligible to be included in the non-telemetered zone are

defined as delivery points that do not have equipment to electronically transmit at least

one intraday measurement reading to the Shipper.

 

Shippers wishing to participate in the plan must commit to a one-year term and notify

Northern of their intentions at least 90 days prior to the first of the month when

participation is to begin. In the event that a participant wishes to terminate its

participation prior to the completion of the one-year term, the participant may do so by

giving Northern at least a 30-day written notice prior to the beginning of the month that

the termination will be effective. Except when a Branchline SOL or a curtailment situation

has been called, if Shipper nominates a daily quantity and Northern schedules such daily

quantity at the non-telemetered Operational Zone delivery point equal to a daily quantity

produced by a load forecast formula agreed to by Northern and Shipper, Shipper will not be

subject to the Daily Delivery Variance Charges of Section 48 of the GENERAL TERMS and

CONDITIONS of this FERC Gas Tariff. Furthermore, Shipper must have assigned Rate Schedule

TF, TFX OR GS-T MDQ equal to the peak day firm entitlement and must have assigned SMS MDQ

to the non-telemetered Operational Zone point equal to the forecasted volume associated

with an eight degree Fahrenheit change based on the November through March load forecast