Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 12/26/2008, Docket: RP09-110-001, Status: Effective
Substitute 11 Revised Sheet No. 286 Substitute 11 Revised Sheet No. 286
Superseding: 10 Revised Sheet No. 286
GENERAL TERMS AND CONDITIONS
47. CAPACITY RELEASE
A. Release Options. Any eligible Shipper, excluding certificated 7(c) and GS-T Shippers, may
release firm throughput or FDD capacity under one of the following options, as applicable:
(i) Level I. Permanent Release of Firm Capacity. Capacity will be permanently released for
the remaining term of the contract. All contract terms and points remain the same.
(ii) Level II. Temporary Release of Firm Capacity With No Recall.
(iii) Level III. Temporary Release of Firm Capacity with Recall. The released
capacity is subject to recall based on limitations as stated in the Term Sheet by each
Releasing Shipper. The nomination procedure must be adhered to.
(iv) Levels II and III.
(a) Releases for 31 days or less, releases of capacity for more than one year at the
maximum tariff rates, releases to an asset manager (AMA), as defined by FERC
regulations at 18 C.F.R. 284.8, or releases to a marketer participating in a state-
regulated retail access program, as defined by FERC regulations at 18 C.F.R. 284.8,
are exempt from the advance posting and bidding requirements. However, the
releasing shipper must provide the terms of such releases to Northern for
informational posting purposes at the time of the release.
(b) No rate limitation applies to the release of capacity for a period of one year or
less and all such releases must comply with the advance posting and bidding
requirements set forth in this Section 47. Such releases must take effect within
one year of the date that the pipeline is notified of the release.
(c) With the exception of releases to an AMA or to a participant in a state-required
retail access program, releases for 31 days or less are not eligible for:
(1) Extension or rollover without first complying with the advance posting and
bidding requirements, or, (2) Re-release without posting to the same shipper until
twenty-eight (28) days after the first release period has concluded.
The rate charged for a release for more than one year may not exceed the applicable maximum
A Shipper with firm capacity in the Market Area may release its firm capacity only in the
Market Area, subject to the availability of capacity in the Market Area. A
Shipper with firm capacity in the Field Area may release its firm capacity only in the Field
Area, subject to availability of capacity in the Field Area. Segmental releases may be
requested. System Management Service (SMS) may be released along with the release of the
corresponding throughput capacity.
Offers to release and bids, including pre-arranged releases, shall be posted upon receipt. A
releasing shipper may request a later posting time for posting of such offer, and Northern
will support such request insofar as it comports with the standard time line in Section 47.D.
The acquiring shipper under a pre-arranged release must initiate confirmation of the release
B. Offers to Release. A Shipper desiring to release firm capacity, must post on
Northern's website an offer to release capacity on a Term Sheet no more than
twelve (12) months prior to the proposed date of the release unless the prearranged release
is negotiated with a project-financed facility to facilitate its financing.
An open bidding process will take place. The open bidding will take place for a period of
time as specified in Section 47.D. Offers to release firm capacity and bids for released
capacity must be complete before being posted.
A Term Sheet is valid only if completed in its entirety, as detailed below. The Term Sheet
must include the quantity, term, minimum price, recall provisions, best offer standards, the
details of any hourly take restrictions and any other applicable terms. Any best offer
standard designated by the releasing Shipper must be objective, non-discriminatory and
applicable to all potential acquiring Shippers. Releasing Shippers have the right to allow
contingent bids, provided the provisions for such contingent bid(s) are provided in the Term