Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 02/21/2009, Docket: RP09-233-001, Status: Effective

Substitute 11 Revised Sheet No. 289 Substitute 11 Revised Sheet No. 289

Superseding: Tenth Revised Sheet No. 289

 

GENERAL TERMS AND CONDITIONS

 

b. The Acquiring Shipper does not agree to pay the lower of (a) the Releasing Shipper's

contract rate, or (b) the maximum tariff rate for the service for the remainder of

the Acquiring Shipper's contract. However, in the event that the Releasing Shipper is

paying Northern a contract rate above the maximum tariff rate because such a rate was

needed to justify the economics of a capital project, and the Acquiring Shipper

agreed to pay the Releasing Shipper a rate above the maximum tariff rate, then

Northern may terminate the Acquiring Shipper's contract if the Acquiring Shipper does

not agree to continue to pay the rate it agreed to pay the Releasing Shipper.

 

c. Northern shall notify the Releasing and Acquiring Shipper simultaneously upon

determining that the Releasing Shipper is in default.

 

d. Northern may simultaneously provide written notices to the Releasing Shipper

that its contract will be terminated and to the Acquiring Shipper of the rate it must

agree to pay in order to retain the capacity.

 

e. In no event will the rate charged the Acquiring Shipper be higher than the rate

charged the Releasing Shipper.

 

(ii) For Non-Payment by Acquiring Shipper. If the Acquiring Shipper does not make full

payment of all amounts billed to it by Northern within ten (10) days of the date of

invoice, Northern shall notify the Acquiring Shipper in writing, and copy the Releasing

Shipper, advising that if default continues for a thirty (30) day period from such

invoice date, the Service Agreement may be terminated; provided, however, Acquiring

Shipper may avoid termination by providing Northern with good and sufficient indemnity

bond. If Acquiring Shipper fails to remedy non-payment within such thirty (30) day

period, the Service Agreement between Northern and the Acquiring Shipper may be

terminated, and the Releasing Shipper shall immediately be able to again release such

capacity.

 

(iii) Due to Lack of Creditworthiness. Northern may elect to terminate an Acquiring Shipper's

service agreement upon 30 days written notice of such termination to an Acquiring

Shipper, under the following conditions:

 

a. The Releasing Shipper has failed to maintain creditworthiness and has been provided

written notice that its contract will be terminated in accordance with Section 46 of

the GENERAL TERMS AND CONDITIONS of this tariff; and

 

b. The Acquiring Shipper does not agree to pay the lower of (a) the Releasing Shipper's

contract rate, or (b) the maximum tariff rate for the service for the remainder of

the Acquiring Shipper's contract. However, in the event that the Releasing Shipper is

paying Northern a contract rate above the maximum tariff rate because such a rate was

needed to justify the economics of a capital project, and the Acquiring Shipper

agreed to pay the Releasing Shipper a rate above the maximum tariff rate, then

Northern may terminate the Acquiring Shipper's contract if the Acquiring Shipper does

not agree to continue to pay the rate it agreed to pay the Releasing Shipper.

 

c. Northern shall notify the Releasing and Acquiring Shipper simultaneously upon

determining that the Acquiring Shipper is not creditworthy.

 

d. Northern may simultaneously provide written notices to the Releasing Shipper that its

contract will be terminated and to the Acquiring Shipper of the rate it must agree to

pay in order to retain the capacity.

 

e. In no event will the rate charged the Acquiring Shipper be higher than the rate

charged the Releasing Shipper.

M. Tiers.

Any capacity released temporarily must retain its tier identification (TF12 or TF5), if

applicable. Realignment of TF5 and TF12 quantities are permitted for permanent

releases, provided no violation of either the Releasing or Acquiring Shipper's

limitation on TF5 capacity of thirty percent (30%) or the grandfathered percentage,

whichever is greater, unless the system's TF5 capacity in the aggregate remains at

thirty percent (30%).

 

N. Reserved for future use.