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

following information:

 

(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

long/short gas;

(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

nomination.