Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 08/01/2004, Docket: RP04-155-000, Status: Effective

Fifth Revised Sheet No. 281 Fifth Revised Sheet No. 281 : Effective

Superseding: Third Revised Sheet No. 281

GENERAL TERMS AND CONDITIONS

44. QUALITY

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All gas to be received from Shipper into the Northern pipeline system

shall conform to the following specifications:

 

a) The gas shall be commercially free from objectionable odors,

solid matter, dust, gums and gum-forming constituents, or any

other substance which might interfere with the merchantability

of the gas, or cause injury to or interference with proper

operation of the lines, meters, regulators, or other appliances

through which it flows.

 

b) Oxygen - less than or equal to 0.02% by volume.

 

c) Hydrogen sulfide - less than or equal to 1/4 grain/Ccf.

 

d) Total Sulphur - less than or equal to 20 grains/Ccf.

 

e) Carbon Dioxide - less than or equal to 1.0% by volume.

 

f) Water - less than or equal to 6 pounds/MMcf.

 

g) Heating Value - greater than or equal to 950 Btu/Cubic Foot.

 

h) The temperature shall be less than or equal to 120 degrees

Fahrenheit.

 

If any gas received by Northern shall fail at any time to conform to the specifications

set forth above, Northern may refuse to accept delivery pending correction by the other

party. Northern may, on a basis that is not unduly discriminatory, elect to accept gas

which fails to meet specifications.

 

PROCESSING

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A Shipper on Northern's system shall have the option to: 1) receive a credit from Northern for

liquid revenues, or 2) enter into a separate processing arrangement with a plant operator,

pursuant to the provisions set forth in this Tariff.

 

Northern shall have the unconditional right to commingle gas received from any Shipper or

source for transportation under this Tariff with gas received from other Shippers or sources.

Northern's obligation under this Tariff shall be to deliver thermally equivalent volumes, less

fuel, from the points of receipt to the points of delivery under the terms and conditions of

the applicable Rate Schedules of this Tariff, and each party tendering gas to Northern shall

recognize that gas delivered by Northern has been commingled from various sources and will not

be the same molecules, or contain the identical constituents, as the gas received by Northern.

No party tendering gas to Northern shall have the right to any particular constituent in the

gas tendered, including but not limited to, liquids and liquefiable hydrocarbons while such

constituents are entrained in the gas stream. However, in the event a Shipper or its designee

elects to retain the right to process gas tendered to Northern, a Shipper or its designee

which has contracted with any processing plant will be entitled to an agreed-upon share of

plant products, revenue or other consideration, as the case may be, attributable to gas

processed at a processing plant in accordance with the allocation methodology agreed to under

subparagraph (a) or a Shipper or another party which has not contracted with any processing

plant will be entitled to a share of the liquids revenues in accordance with the allocation

methodology under subparagraph (b). Any Shipper may elect to retain the right or elect to

appoint to its designee as the party with the right to process gas tendered to Northern for

the removal of liquids and liquefiable hydrocarbons under the options set forth below. For

the purposes of this Section, Shipper's designee may be any party designated by Shipper to

Northern by written notice, (including but not limited to a working interest owner in a well

from which Shipper purchases gas, a marketer, broker, or the operator of a gas processing

plant) and such designee need not be a designee under Shipper's Service Agreement for any

purpose such as nomination, scheduling, billing or payment.