Northern Natural Gas Company

Fifth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 09/29/2010, Docket: RP10-1109-000, Status: Effective

First Revised Sheet No. 289B First Revised Sheet No. 289B

Superseding: Original Sheet No. 289B

GENERAL TERMS AND CONDITIONS

For recall notification provided to Northern after 5:00 p.m. and prior to 7:00 a.m., Northern

should provide notification to all affected replacement Shippers no later than 8:00 a.m.

after receipt of such recall notification (CCT).

When a releasing Shipper with recall rights desires to recall its capacity during an Intra-Day

cycle, Northern's capacity release system will indicate to such Shipper the capacity available

for recall based upon the EPC. Therefore, the releasing Shipper's recall notification to

Northern would reflect the adjusted total released capacity entitlement.

Northern shall not be obligated to deliver in excess of the total daily contract quantity of

the release.

The amount of capacity allocated to the replacement Shipper(s) should equal the original

released capacity less the recalled capacity that is adjusted based upon the EPC.

When capacity is recalled, it may not be reput for the same Gas Day.

P. Index-Based Capacity Releases

For index-based capacity release transactions, Rate Floor is the term used to describe the

lowest rate specified in the capacity release offer in dollars and cents that is acceptable to

the releasing Shipper. The Rate Floor may not be less than Northern's minimum reservation rate

or zero cents when there is no stated minimum reservation rate.

For index-based capacity release transactions, the capacity release facilitator should support

a Rate Floor to be specified by the releasing Shipper in the capacity release offer.

For index-based capacity release transactions, Northern should support the ability of a

releasing Shipper to specify in the capacity release offer a non-biddable Rate Default. The

Rate Default cannot be less than the Rate Floor, if any.

For index-based capacity release transactions, the releasing Shipper must specify which one of

the following methods is acceptable for bidding on a given index-based capacity release offer:

o percentage of the formula,

o dollars and cents differential from the formula,

o dollars and cents differential from the Rate Floor, or

o an approved methodology in this Tariff, if any.

When bidding is based upon a dollars and cents differential from the Rate Floor, the invoiced

rate for the award will be calculated as the greater of (i) the result of the formula or (ii)

the Rate Floor plus the high bid's differential, both not to exceed Northern's maximum

reservation rate, if applicable.

The releasing Shipper may specify another method in the special terms and conditions, but the

capacity release offer may not be processed within the capacity release timeline pursuant to

NAESB WGQ Standard No. 5.3.2.

Unless otherwise specified in this Tariff, for index-based capacity release transactions where

the result of the award is to be applied on a monthly basis, and the formula detailed in the

capacity release award requires calculations on a daily basis, the results of such daily

calculations may exceed the applicable maximum daily reservation rate or be less than the

applicable minimum daily reservation rate. However, any resulting monthly reservation rate may

not exceed Northern's maximum monthly reservation rate, as applicable, or be less than the

Rate Floor specified in the capacity release award.