Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 02/21/2009, Docket: RP01-223-004, Status: Effective

1 Rev Sub Sixth Revised Sheet No. 263A 1 Rev Sub Sixth Revised Sheet No. 263A : Pending

Superseding: Substitute Sixth Revised Sheet No. 263A

GENERAL TERMS AND CONDITIONS

 

All dollars collected in this Section 2, including dollars related to the Carlton

commodity surcharge in Section 4 hereof, will be recorded in a separate subaccount

and will accumulate interest from the date collected as prescribed by the Commission

in 18 CFR 154.501(d).

 

3. Receipt Point Realignment. As a result of the sourcing allocation described in

Section 1 above, receipt point realignments will be required. The amount of

receipt point capacity to be realigned to and away from Carlton will equal the

difference between the respective Sourcer's current total Carlton primary receipt

point capacity in effect on November 1, 1996 and the new allocated Carlton primary

receipt point capacity for each Sourcer except the GS-T Customers as indicated on

Appendix B. This realignment will not affect the Other Carlton Entitlements which

are in excess of the current Carlton Resolution volumes and currently have Carlton

as a primary receipt point.

 

In no event will the receipt point realignment process cause the Market Area

receipt point capacity under contract to increase, either at an individual point or

in aggregate. The realignment of receipt points among the impacted shippers will

consist of realigning of capacity between Carlton and three (3) other Market

Area receipt points of Ventura, Demarcation and Trailblazer. Shippers realigning

to Carlton must notify Northern of the volume to be reduced at Ventura,

Demarcation and/or Trailblazer. To the extent Northern is not notified, Northern

will pro rate the required reduction based on the shipper's current Ventura,

Demarcation and Trailblazer capacity. In the event a shipper that must realign to

Carlton holds neither Ventura, Demarcation nor Trailblazer capacity, then that

shipper must give up its total required capacity realignment at some other

effective Market Area receipt point south of Farmington. Those shippers realigning

away from Carlton will move to Ventura, Demarcation, Trailblazer and any other

effective Market Area receipt point on a pro rata basis based on the receipt point

availability as a result of those shippers required to move to Carlton. Northern

will provide the affected shippers revised Appendix A's to their contracts with an

effective date of December 1, 1996.

 

4. Surcharge. All Market Area entitlement not identified in the Adjusted Current Peak

Entitlement at Carlton on Schedule 1 (excluding Other Carlton Entitlement and ANR)

including all other Market Area TF, TFX, VFT, LFT and TI will be subject to a

Carlton Commodity Surcharge equal to $0.04 for volumes which flow. To the extent

Northern is unable to charge the maximum commodity rate, Northern will discount the

base commodity rate as allowed per the tariff first. Further, the Sourcers on

Schedule 1 will remain Sourcers until the expiration of their contracts. Upon any

rollover of such contracts, the entitlement in Schedule 1 will remain subject to the

sourcing obligation and will not be subject to the Carlton Commodity Surcharge. Any

entitlement for a shipper which is in addition to the entitlement reflected on

Schedule 1, as well as any entitlement for an Other Carlton Shipper which is in

addition to the entitlement reflected on Schedule 1 for Other Carlton Entitlement

shippers, will be subject to the Carlton Commodity Surcharge.

 

All Carlton Commodity Surcharge dollars will be reimbursed on a pro rata basis to

Sourcers based on their new Carlton Resolution Obligation as stated on Schedule 1,

including Appendix B Parties that exercise the buyout provision, on or before June 1

of each year. On or before July 1 of each year Northern will file a report with the

Commission detailing the amounts reimbursed pursuant to Sections 2 and 4. The

amount of Northern's reimbursement to each Sourcer shall be subject to Commission

review and approval. Any Northern shipper or other party shall have the

opportunity, after Notice by the Commission, to intervene and protest Northern's

report related to the report period, including the appropriateness of the amounts

which have been collected.

 

5. Bid Process. Beginning for the 1997-98 Heating Season and each year thereafter,

each Sourcer on Schedule 1 will have the option to source its volumes at Carlton or

to have its volumes included in the Bid Process, as described in Section 5.1, for

another party to source. In the event any party(s) elects to have others source

their Carlton Obligation, Northern will contract on an annual basis with

Suppliers/Shippers ("Carlton Suppliers/Shippers") willing to assume any or all of

the Carlton Obligation Volume included in the Bid Process.