Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 11/01/2003, Docket: RP03-398-011, Status: Effective
First Revised Sheet No. 291A First Revised Sheet No. 291A : Effective
Superseding: Substitute Original Sheet No. 291A
GENERAL TERMS AND CONDITIONS
Before issuing a Critical Day notice, an SOL Day will be posted. Prior to
posting a Critical Day notice, subject to timing and availability, Northern
will use its operating tools to attempt to alleviate the operational concern.
Such tools include line pack, operational storage, Carlton Resolution, LNG,
and System Balancing Agreements (SBA).
1. Notice. Northern will post the Critical Day notice on its website no later
than two and one-half (2 1/2) hours prior to the NAESB Grid Cycle nomination
deadlines for the Critical Day Gas Day. The Critical Day will remain in
affect for the remainder of the Gas Day. Northern will post a new notice
for each subsequent Gas Day, as applicable. The notice will contain the
(i) The affected area;
(ii) Offending Shipper(s), if known, subject to the Critical Day;
(iii) The day and time that the Critical Day will become effective;
(iv) The operational variables for the following: line pack and projected
(v) Weather forecasts; and
(vi) Demarc and MIP prices.
2. Reporting. Northern will post on its Internet website within a reasonable
period of time following the conclusion of the Critical Day, a report
describing the conditions that required the issuance and the termination of
the Critical Day.
3. Critical Day DDVCs. In the event Northern calls a Critical Day, the
determination of the volumes subject to Positive DDVC and Punitive DDVC are
as set forth above in this Section, and no tolerance will apply above the
Shipper's MDQ (including any overrun volumes scheduled) before DDVC's apply.
However, the rates such Positive volumes and Punitive volumes are charged
shall be the Positive/Critical Day DDVC rates and Punitive/Critical Day DDVC
rates, respectively. The first two percent (2%) of Positive/Critical Day
DDVC volumes are charged $15/MMBtu and the next three percent (3%) are
charged $22/MMBtu. The Punitive/Critical Day DDVC rates are also charged at
two (2) levels: Level I shall apply to the five percent (5%) of the daily
volumes at each delivery point that are in excess of the Positive/Critical
DDVC level, and Level II shall apply to any excess volumes above Level I.
However, Small Customer and Bypassing Small Customer tolerances and positive
DDVC levels as set forth in paragraph B.4 above apply at all times, even
when a Critical Day is called. Small Customer and Bypassing Small Customer
Positive/Critical DDVC levels are $15/MMBtu for the greater of the first 2%,
or 260 MMBtu, and $22/MMBtu for the greater of the next 3%, or 390 MMBtu.
In addition, when an Critical Day is in effect, if the sum of the scheduled
volume on all of Shipper's firm and interruptible Throughput Service
Agreements is equal to or greater than the Shipper's MDQ, then the tolerance
is not available above the MDQ level. However, in such case, SMS is
available up to the Shipper's MDQ. Further, Small Customers and Bypassing
Small Customers retain their use of tolerance and positive DDVC levels as
set forth in paragraph B.4 above, and SMS on SOL or Critical Days, and Small
Customers are not subject to the foregoing limitation. In the event
Northern posts a Critical Day notice to be effective during the IntraDay 1
or IntraDay 2 nomination cycle, Northern will only impose penalties
resulting from a Critical Day prospectively. However, should a Critical Day
be called during an Intraday 2 nomination cycle, Northern will only apply
the Critical Day penalty charges to shippers who reduce their nominations in
the Intraday 2 cycle, but still take volumes in excess of the reduced