Northern Natural Gas Company

Fifth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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

Ninth Revised Sheet No. 268 Ninth Revised Sheet No. 268

Superseding: Eighth Revised Sheet No. 268

 

GENERAL TERMS AND CONDITIONS

 

D. Tiering of MIPs

 

Except for Small Customers, the Market Area, Field Area, or Gulf Coast MIP is

tiered based upon the monthly imbalance level of the legal entity, in

accordance with the following schedule:

 

Imbalance Level* Due Northern Due Shipper

--------------- --------------- --------------

0% - 3% HIGH MIP * 1.00 LOW MIP * 1.00

Greater than 3% up to 5% HIGH MIP * 1.02 LOW MIP * 0.98

Greater than 5% up to 10% HIGH MIP * 1.10 LOW MIP * 0.90

Greater than 10% up to 15% HIGH MIP * 1.20 LOW MIP * 0.80

Greater than 15% up to 20% HIGH MIP * 1.30 LOW MIP * 0.70

Greater than 20% HIGH MIP * 1.40 LOW MIP * 0.60

 

*The imbalance level is determined by dividing the legal entity's monthly

Volumetric Imbalance by its monthly deliveries. Such monthly deliveries shall

exclude Shipper's deliveries under MPS agreements, solely for purposes of

calculating Shipper's transportation imbalances percentage.

 

For any legal entity listed as a Small Customer on Sheet No. 510 of this

Tariff, tiering shall be as set forth above, except the imbalance level

and associated valuation applicable for the first tier of MIP * 1.00 is

equal to the greater of 1,000 MMBtu or 3%.

 

The tier valuation factors listed above will be applied to the portion of

the imbalance level which falls within each tier.

 

Delivery Point Operators shall have the ability to determine the imbalance

level by an alternate method ("alternate imbalance level determination"),

subject to the following:

 

If Northern is transporting gas to a Point(s) of Delivery which is

within an Operational Zone and, billing of the last-through-the-meter

methodology as described in Section 30 of the GENERAL TERMS AND CONDITIONS

of this Tariff is employed, then the Delivery Point Operator's imbalance

level shall be determined by dividing the operator's monthly volumetric

imbalance by all volumes delivered to the point for the month that are

subject to the last through-the-meter methodology, assuming prior to the

beginning of any month Northern has been provided the legal entity(s)

delivering to the Delivery Point Operator's Operational Zone for the month

and that such volumes, for purposes of imbalance level determination, are

to be used by the Delivery Point Operator. This alternate imbalance level

determination will be used only when the Delivery Point Operator's monthly

imbalance level exceeds 3%.

 

E. Applicability of MIPs

 

(i) To determine the Dollar Valuation of a Shipper's Volumetric Imbalance,

the following factors are applicable:

 

(a) For Volumetric Imbalances where the Shipper's monthly deliveries exceed

the Shipper's monthly receipts (Shipper owes Northern), the Dollar

Valuation is calculated by multiplying the monthly Volumetric Imbalance

by the "Due Northern" High Market Area, High Field Area, or Average

Gulf Coast MIP, as tiered for the Shipper's imbalance level.

 

(b) For Volumetric Imbalances where the Shipper's monthly receipts exceed

the Shipper's monthly deliveries (Northern owes Shipper), the Dollar

Valuation is calculated by multiplying the monthly Volumetric Imbalance

by the "Due Shipper" Low Market Area, Low Field Area, or Average Gulf

Coast MIP, as tiered for the Shipper's imbalance level.

 

(c) For Volumetric Imbalances created at Northern's request for

operational reasons, the Dollar Valuation is calculated by

multiplying the Average Market Area, Average Field Area, or

Average Gulf Coast MIP by the Volumetric Imbalance for the

applicable month.