Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 11/01/2003, Docket: RP00-404-007, Status: Effective
Fourth Revised Sheet No. 263C Fourth Revised Sheet No. 263C : Effective
Superseding: Third Revised Sheet No. 263C
GENERAL TERMS AND CONDITIONS
Northern has the right to require an increase or reduction of firm receipts at
Carlton on a non-discriminatory basis for system integrity. The phrase, "for
system integrity", means that Northern has the right to require, in resolving the
Carlton problem, an increase or decrease of receipts at Carlton on a
non-discriminatory basis in order for Northern to meet its contractual firm
delivery obligations downstream of Farmington up to a maximum of 250,000
MMBtu/day as provided for under the Settlement. Northern will schedule the
nominated volume in accordance with its tariff as further provided herein. In
the event that an increase in flow is needed, Northern shall call on the volume
on a pro rata basis. In the event Northern calls on the volume, Northern shall
also require the Other Carlton Entitlement to flow an amount equal to the
percentage of the volume Northern has called on to the Total Current Peak
Entitlement on Schedule 1, times their primary receipt point capacity at Carlton.
This Other Carlton Entitlement shall not be required to nominate or flow less
than or more than the Shipper's market requirements and/or uses.
A Carlton Sourcer or Other Carlton Shipper with a delivery point downstream of
Farmington may reduce its deliveries at that specific point and receive a
concomitant reduction in its requirement to receive its specified level of
volumes at Carlton provided such shipper's nomination is at an individual
point/TBS level and the individual delivery point/market reduction is verifiable.
To the extent a shipper has the right and utilizes zone nominations, if such
shipper nominates to reduce its obligation by reducing deliveries to a qualified
delivery point in the zone, all nominations for the respective zone must be at
the individual point/TBS level. Verification of the market reduction will be via
affidavit which may be provided by fax or electronically as part of the
nomination process. In the event a shipper exercising this provision to reduce
its Carlton requirements fails to correspondingly reduce its delivery
point/market, such shipper shall pay a penalty of twenty-five dollars ($25.00)
for each MMBtu of reduced Carlton requirement that does not have a concomitant
reduction in delivery.
During the heating season, Northern will not reduce any nomination for firm
receipts at Carlton for any Sourcer or Other Carlton Entitlement Shipper
who has a verifiable market or use. Verification of such market or use may be
provided by fax or electronically as part of the nomination process or otherwise
in the daily routine.
When Northern requires an increase in firm receipts at Carlton, Northern will
notify the appropriate parties to flow no later than twenty-four (24) hours prior
to Northern's Timely Nomination deadline. When Northern requires a decrease in
firm receipts at Carlton, Northern will notify the appropriate parties to
decrease flow no later than twenty-four (24) hours prior to Northern's Timely
No Carlton Sourcer or Carlton Supplier/Shipper will be required to flow at
Carlton for the purpose of allowing Northern to avoid curtailment, as
defined in Northern's tariff, of TI service.
If, as a result of the operational flow requirements being invoked by Northern at
Carlton, those shipper(s) for whom flow modifications were required, incur an
imbalance penalty related solely to such flow change,
the imbalance penalty shall be waived.
If any Sourcer releases any portion of the Volume, the Carlton flow obligation
and all other obligations follow the Volume. In addition, the primary receipt
point may not be modified. A Carlton Supplier/Shipper may not release its