Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 11/01/1998, Docket: RP98-203-000, Status: Effective

Third Revised Sheet No. 282 Third Revised Sheet No. 282 : Effective

Superseding: Second Revised Sheet No. 282

GENERAL TERMS AND CONDITIONS

 

Shipper or its designee must notify Northern in conjunction with the beginning of the month

nomination for throughput of its election to retain the right to process gas tendered to

Northern and the portion of the throughput quantity for which the election pertains. Such

election shall remain in place for that calendar month and each month thereafter until a

subsequent beginning of the month nomination has been made to modify or terminate. Upon such

effective date, the election shall apply to gas which has been nominated to flow on Northern's

system and is processed at a processing plant. Furthermore, Northern will not allow any

person including another Shipper to divert gas offsystem if Northern or a Shipper which has

the right to process the plant products has designated such gas for processing to a

processing plant. However a Shipper, which has not elected in accordance herewith the right

to process at a processing plant shall not be precluded from nominating volumes for

transportation to a delivery point which is downstream of the physical point of receipt on

Northern's system. In no event, however, is Northern required to allow processing by

displacement. Shipper's election to process shall not result in throughput fuel and

unaccounted for charges exceeding the charges which would have been incurred if the election

to process had not been made.

 

Northern shall have the right to rely on the information provided by Shipper as to its

processing rights absent information to the contrary. Shipper shall indemnify and hold

Northern harmless from any claims by any party resulting from Northern's reliance on Shipper's

information.

 

Where applicable, a party may select one of the following options:

 

(a) Processing Plants (Shippers with Processing Agreements). A Shipper or its designee which

retains the right to process and tenders gas to Northern for transportation and

processing through a processing plant shall be responsible for PVR and throughput charges

associated with the processing of such gas.

 

The Shipper or its designee may directly contract with the processing plant for the

processing of gas nominated and delivered to the inlet of the processing plant by

Northern for the account of Shipper or its designee. In such event, the Shipper or its

designee and the processing plant shall mutually agree to an allocation methodology for

determining the plant products attributable to the gas for which Shipper or its designee

has elected to retain the right to process under the separate contractual arrangement

between the Shipper or its designee and the processing plant and for determining the

plant products attributable to gas for which Northern retains the right to process.