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.