Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 04/17/2010, Docket: RP10-502-000, Status: Effective
Fourth Revised Sheet No. 269B Fourth Revised Sheet No. 269B
Superseding: Third Revised Sheet No. 268B
GENERAL TERMS AND CONDITIONS
J. Imbalance Statements.
The Imbalance statements shall be made available to the Shipper on the
9th business day of each month.
Upon termination of the Throughput Service Agreement, any remaining imbalances
shall be cashed out/in within thirty (30) days from the date of termination.
K. Imbalance Value Reconciliation
For the production period commencing January 1, 2005, Northern will record the
effects of Storage Encroachment Price Risk (SPR) previously called the System
Levelized Account (SLA) on a monthly basis. Such effect shall be separately
recorded by Cash and Liability or Asset, including the value from tiering the
MIP, and revenues and expenses related to the sale or purchase of gas volumes,
including the costs and revenues of managing operational storage purchase and
sales obligations through the use of derivative instruments. Regardless of any
accounting rule or principle that may apply, the changes in fair value of
derivative instruments, if used to manage the SPR, may be included in the cost of
service for ratemaking purposes, subject to all parties' rights to challenge
on any grounds other than such accounting principles.
L. Imbalance Trading. Imbalance trading activity shall follow the steps outlined
below. All imbalance trading will be on a volumetric basis.
(i) Effective February 1, 2005, by the ninth (9th) business day of the month
following the month the imbalance occurred, Northern will automatically post
on its website Shipper's volumetric imbalances (netted by legal entity) by
type of imbalance. Northern will also post customer-provided information
regarding their desire to trade, the volumes and price at which they want to
trade and any other comments.
(ii) A Shipper may negotiate with other Shippers, or Shipper's agent, to trade
the existing imbalances. An agent is allowed to trade imbalances on behalf
of more than one shipper at the same time. Imbalances can be traded as long
as they affect the same operational impact area, either "Market Area,"
"Field Area" or "Gulf Coast," consistent with the definition of the "Market
Area," "Field Area" and Gulf Coast," as set forth in Section 32 C. above.
There is no requirement that imbalances for trading must be incurred on the
(iii) All Shippers will have until the close of the 17th business day of the
month following the month the imbalance occurred to complete volumetric
imbalance trading elected in (i) above.
(iv) Shippers must notify Northern at or prior to the close of the 17th business
day via fax or e-mail of the volumes traded and the trading partners (all
Shippers in the trade must notify Northern of the intent and the amount
(v) Imbalance trades will be executed at no additional cost to the Shipper.
(vi) After the close of the 17th business day of the month following the month
the imbalance occurred, Northern will calculate Shipper's final imbalance
for the prior month's gas flow. Any residual imbalances net of trading and
not resolved by other methods in accordance with the terms of this tariff
will be cashed-in/out at the weekly high/low price for the production
(vii) Any discrepancies between trading Shippers' imbalance trade notifications
to Northern will result in the trade not being confirmed and the volume
remaining as an imbalance to both Shippers, which will be subject to
resolution using cash-in/out. However, an initiating Shipper may cure any
defect in its imbalance trade notification so long as the Shipper does so
prior to the receipt of the trade confirmation. Imbalance trades can only
be withdrawn by the initiating trader and only prior to the confirming
trader's confirmation of the trade. Imbalance trades are considered final
when confirmed by the confirming trader and effectuated by Northern.