Northern Natural Gas Company

Fifth Revised Volume No. 1

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

Eighth Revised Sheet No. 264 Eighth Revised Sheet No. 264

Superseding: Seventh Revised Sheet No. 264

 

(d) Other Flow Orders. Northern and Shipper may agree to a contract specific

receipt or delivery point flow requirement which could require receipts from

or deliveries to the primary points under a Shipper's firm agreement in

order to alleviate conditions on Northern's system that threaten the safe

operations or system integrity or to maintain conditions on Northern's

system that are required to maintain safe operations or system integrity.

Northern and Shipper may agree to discount the transportation rate, provide

a contribution in aid of construction, or other consideration consistent

with the terms of Northern's FERC-approved tariff as the consideration for a

contract specific flow order. Northern will post on its Internet website,

under Transactional Reporting, applicable provisions and consideration

provided under this provision.

 

(e) OBA GENERAL TERMS & CONDITIONS

 

If requested by a Shipper, Northern agrees that it will negotiate an

Operational Balancing Agreement (OBA) with an entity that operates the

facilities interconnecting with Northern or controls supplies entering

Northern's system at interconnection point and/or receipt point(s)

("Operator"), as applicable. An OBA is a contract between two parties which

specifies the procedures to manage operating variances at an interconnect.

Such an OBA with Operator will be subject to the following conditions.

 

GENERAL TERMS AND CONDITIONS

 

1. Quantities nominated by Shipper are confirmed on a reliable basis by

Operator;

 

2. Data Acquisition Systems or other monitoring equipment generally

acceptable by industry standards exists at the interconnection point

and/or receipt point(s);

 

3. Operator must meet the same credit worthiness standards as Shipper(s)

for whom it is operating on behalf of;

 

4. Operator must possess sufficient quantities of gas for it to balance

receipts and/or deliveries under the OBA.

 

An Operational Balancing Agreement may be subject to certain conditions as

follows:

 

1. Any receipt point imbalance and scheduling penalties otherwise

applicable to Shipper will be applicable to operator unless Northern

maintains flow control equipment at the wellhead receipt or

interconnection point(s) under the Operational Balancing Agreement.

 

2. Operator and Northern will negotiate in good faith to agree on a method

of valuing imbalances based on market price indices. The method of

valuing imbalances will be applied in a non-discriminatory manner.

Nothing in this section is intended to restrict Northern's ability to

either execute an Operational Balancing Agreement without market based

imbalance evaluation or to terminate such an agreement for lack

thereof. However, OBAs applicable to non-contiguous facilities shall

be resolved by cash in/out.

 

30. BILLING THROUGHPUT QUANTITY

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A. Single Shipper. The Billing Throughput Quantity ("BTQ") shall be the volumes

actually delivered for a Shipper. For monthly billing purposes, the

determination of the BTQ for a Shipper transporting gas under more than one

Throughput Rate Schedule shall be in the following order (Default Order)

unless agreed to otherwise by Northern and the Shipper prior to the

close of business of such production month:

 

(1) volumes, including overrun volumes, scheduled for delivery under Rate

Schedule(s) TFX and LFT, if any;

 

(2) volumes, including overrun volumes, scheduled for delivery under Rate

Schedule(s) TI and GS-T, if any;