Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 04/17/2010, Docket: RP10-502-000, Status: Effective

Tenth Revised Sheet No. 263 Tenth Revised Sheet No. 263

Superseding: Ninth Revised Sheet No. 263

 

GENERAL TERMS AND CONDITIONS

 

scheduled volumes under Interruptible Throughput Service Agreements on the basis

of the lowest path rate first.

 

2) Firm Services. In the event capacity must be allocated on part or all of Northern's

system, Firm Throughput Services will be the last category to be curtailed. Such

curtailment shall be allocated on a pro rata basis except as provided in Section 19,

"Limitations on Northern's Obligation to Provide Firm Service" of the GENERAL

TERMS AND CONDITIONS.

 

If Northern is experiencing a shortfall or excess in receipts which affect the operating

integrity of its system, only until Northern is able to determine the Producer or Shipper

who has failed to tender volumes equal to the volumes nominated and scheduled, Northern shall

have the right, after providing as much advance notice as possible, to interrupt deliveries

concerning the affected area as provided in the Receipt Point Supply Shortfall or Excess

provisions of Section 19 of the GENERAL TERMS AND CONDITIONS of this Tariff.

 

(c) CARLTON RESOLUTION. Up to 250,000 MMBtu per day of gas is needed at Northern's

interconnect with Great Lakes Gas Transmission Company at Carlton, Minnesota (Carlton) in

order to meet firm Market Area requirements. The following tariff provisions are

provided for in the Carlton Stipulation and Agreement of Settlement filed in Docket

No. RP96-347 on October 28, 1996 (Settlement) and Docket No. RP01-382. Northern will

reappraise the need for the 250,000 MMBtu/Day on an annual basis prior to the

commencement of the heating season.

 

1. Allocation of Sourcing Requirement at Carlton. All firm Market Area entitlement

existing as of November 1, 1996 with a term in effect through March 31, 1998,

excluding Other Carlton Entitlement, entitlement of ANR Pipeline Company (ANR) and

firm entitlement associated with the Coal Gasification Plant, currently in effect for

the full five (5) months of the heating season (Sourcers) will be required to source

volumes at Carlton in the amount shown on Schedule 1 of the Settlement, (and may be

reallocated pursuant to Section 2 below).

 

Carlton includes other operationally feasible receipt points that resolve the Carlton

situation as determined by Northern may be utilized by Sourcers in place of Carlton.

 

Other Carlton Entitlement, also shown on Schedule 1 of the Settlement, is entitlement

held by shippers at Carlton above the current Carlton Resolution amount of 250,000.

 

Any Sourcer may assign its rights (such as compensation) as well as its sourcing

obligation to another shipper subject to notification to Northern two (2) work days

in advance of such assignment.

 

2. Buyout. The Parties listed on Appendix B of the Carlton Settlement (Appendix B

Parties) may elect to buy out of the sourcing obligation each year. The amount to be

paid to buyout shall be equal to $0.083 for the heating season commencing November 1,

2001 through March 31, 2002 and $0.19 for each heating season thereafter times their

daily sourcing obligation as set forth on Schedule 1, times 151 days for each Heating

Season. The Appendix B Parties buying out of the obligation are required to notify

Northern no later than August 1 each year. Sourcers on Schedule 1 will be updated

annually for the limited purpose of reflecting any reallocation as a result of the

Appendix B election using the entitlement currently stated on Schedule 1 (Schedule

1A). All dollars collected from Appendix B Parties will be reimbursed on a pro rata

basis to the Sourcers and except for Appendix B Parties that have bought out, which

will be as shown on Schedule 1A, based on their new Carlton Resolution Obligation as

stated on Schedule 1A.

 

ANR is required to pay a buyout amount equal to $0.0062 for the heating season

commencing November 1, 2001 through March 31, 2002 and the Carlton Commodity

Surcharge thereafter each year times its total contract MDQ of 86,512 MMBtu/Day times

151 days for each year that its contract is in effect. All dollars collected from

ANR pursuant to this Section 2 will be reimbursed on a pro rata basis to the Sourcers

except as provided in 4.(ii) based on their new Carlton Resolution Obligation as

stated on Schedule 1, on or before June 1 of each year.

 

The buyout costs described above will be billed monthly during the heating season to

the respective Appendix B Party and ANR.