Northern Natural Gas Company

Fifth Revised Volume No. 1

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

Original Sheet No. 289C Original Sheet No. 289C

 

GENERAL TERMS AND CONDITIONS

 

If the resulting monthly reservation rate exceeds Northern's maximum

reservation rate, as applicable, Northern's maximum reservation rate should be

used for invoicing. If the resulting monthly reservation rate is less than the

Rate Floor, the Rate Floor should be used for invoicing.

 

For invoicing of volumetric index-based capacity release transactions, where

the result of the formula detailed in the capacity release award is to be

applied on a daily basis, if the calculated daily rate exceeds Northern's

applicable maximum reservation rate or is less than the Rate Floor specified

in the capacity release award, Northern's maximum reservation rate or the Rate

Floor, respectively, should apply.

 

For index-based capacity release transactions, upon mutual agreement between

the releasing Shipper and Northern, the releasing Shipper should provide

Northern and the replacement Shipper with the detailed calculation of the

reservation rate(s). Except as provided below, this rate(s) will be stated on

the invoice provided by Northern to the replacement Shipper pursuant to the

capacity release award. The results of the releasing Shipper's calculations

should conform to the capacity release award and/or to Northern's minimum and

maximum reservation rates, as applicable.

 

o For reservation and monthly volumetric index-based capacity release

transactions, the detailed calculation should be provided in a mutually

agreed upon format no later than the second Business Day of the month

following the transportation under the release.

o For volumetric index-based capacity release transactions requiring a

daily rate calculation, the detailed calculation should be provided in a

report pursuant to NAESB WGQ Standard No. 5.3.69.

 

If the report is not provided by the applicable deadline above or is deficient,

Northern will notify the releasing Shipper to provide Northern with a correct

report within one Business Day. Thereafter, in the absence of a conforming

report, Northern will invoice the replacement Shipper the greater of the Rate

Default specified in the capacity release offer or the Rate Floor plus any

differential specified in the capacity release award.

 

Upon notification to Northern by both the releasing Shipper and the replacement

Shipper that prior period adjustments to the calculated reservation rates used

in the invoice are appropriate, invoiced amounts can be revised subsequently,

upward or downward, to conform to the capacity release award, subject to the

requirements governing prior period adjustments.

 

For volumetric index-based capacity release transactions, where the releasing

Shipper performs invoicing calculations pursuant to NAESB WGQ Standard No.

5.3.66, Northern will provide allocated quantities to the releasing Shipper

according to a mutually agreed upon timetable. The releasing Shipper should

have at least one Business Day to process the quantities prior to returning

such invoicing information to Northern in a tabular format.

 

Northern will provide the allocated quantities to the releasing Shipper in a

tabular file to be described by Northern. The first row of the file will

contain the column headers and data will begin on the second row of the file.

In addition, the first column will contain the applicable Gas Day(s).