Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 02/21/2009, Docket: RP01-223-004, Status: Effective

Fourth Revised Sheet No. 290 Fourth Revised Sheet No. 290 : Pending

Superseding: Substitute Third Revised Sheet No. 290

48. Daily Delivery Variance Charges (DDVC)

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A. General

Shippers are required to take actual daily volumes at their delivery

point(s) as close to daily scheduled volumes as possible. In the event

that actual daily volumes vary from daily scheduled volumes, Shippers

are subject to Daily Delivery Variance Charges (DDVC), after a

tolerance has been considered (except as provided below in System

Overrun Limitation).

There are five (5) types of DDVC's: a Positive DDVC, a

Positive/Critical Day DDVC, a Negative DDVC, a Punitive DDVC and a

Punitive/Critical Day DDVC. The rate for each is set forth on Sheet

No. 53.

Also, see Rate Schedule SMS of this tariff, "System Management

Service".

B. Positive DDVC. In the absence of an SOL or Critical Day being called

(as described below), the Positive DDVC shall apply under the following

conditions:

For TF, TFX, VFT and LFT

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1) If daily volumes scheduled at the delivery point are less than

the MDQ, the Positive DDVC applies to daily volumes in excess of

all daily volumes scheduled at the point plus a tolerance of five

percent (5%) of scheduled volumes at the point, up to a level

equal to the MDQ plus five percent (5%) of the MDQ.

2) If daily volumes scheduled at the delivery point are equal to or

greater than the MDQ, the Positive DDVC applies to the first five

percent (5%) of the daily scheduled volumes in excess of all

daily volumes scheduled at the point plus a tolerance of five

percent (5%) of scheduled volumes at the point.

3) If the Shipper has subscribed to service under Rate Schedule SMS,

the Positive DDVC, as determined in 1) and 2) above, will apply

to volumes in excess of the scheduled volume plus the five

percent (5%) tolerance plus the SMS Contract Quantity (SMSQ).

4) The tolerance level for Small Customers in 1) and 2) above shall

be the greater of five percent (5%) of all scheduled volumes at

the point or 650 MMBtu.

The Positive DDVC level for Small Customers is as follows: if

daily volumes scheduled at the delivery point are less than the

MDQ, the positive DDVC applies to daily volumes in excess of all

daily volumes scheduled at the point plus a tolerance level of

the greater of five percent (5%) of scheduled volumes at the

point or 650 MMBtu, up to a level equal to the MDQ plus the

greater of five percent (5%) of the MDQ or 650 MMBtu. If daily

volumes scheduled at the delivery point are equal to or greater

than the MDQ, the Positive DDVC applies to the greater of the

first five percent (5%) of the daily scheduled volumes or 650

MMBtu in excess of all daily volumes scheduled at the point plus

a tolerance of the greater of five percent (5%) or scheduled

volumes or 650 MMBtu at the point.

For TI

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1) The Positive DDVC shall apply to the first five percent (5%) of

daily scheduled volumes at each delivery point which are in

excess of the scheduled volumes at the point plus a tolerance of

five percent (5%) of the scheduled volumes at the point. The

tolerance for Small Customers is the greater of five percent of

all scheduled volumes at the point or 650 MMBtu.