Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 02/25/2006, Docket: RP06-185-000, Status: Effective

Third Revised Sheet No. 298 Third Revised Sheet No. 298 : Effective

Superseding: Substitute Second Revised Sheet No. 298

GENERAL TERMS AND CONDITIONS

 

Failure by the Shipper to give Northern the notice specified in this

section will result in the automatic abandonment of the entitlement and

the Shipper's right to the subject capacity at the end of the contract

term will cease. Shipper may waive its right to participate in the

Right of First Refusal process which will result in automatic

abandonment of the entitlement upon the termination of the contract.

 

2) Bidding Process

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Subsequent to Northern's receipt of the Shipper's Right of First

Refusal notice described in Section 1) above, Northern will post the

designated capacity on its website in order to solicit bids for the

capacity. Northern will post any availability of throughput capacity

under Right of First Refusal as separate and distinct from generally

available throughput capacity. However, Northern may post any

availability of Firm Deferred Delivery (FDD) capacity, including FDD

capacity available under Right of First Refusal, in a single aggregate

posting with the type of capacity identified, e.g., generally available

or Right of First Refusal.

 

A Bidder desiring to obtain the posted capacity must submit a bid to

Northern, in accordance with Section 3) below, within

forty-five (45) days of the posting to participate in the Right of

First Refusal process.

 

If the tendered bids are less than maximum rate and if Northern is

willing to accept less than maximum rates, Northern will utilize an

iterative bidding process. Each bid will be posted on the website and

each iteration's best offer will be posted on the website for

informational purposes, along with the name of the highest bidder. In

subsequent iteration(s), bidders will have five (5) days to respond to

Northern after a posting; thereafter, after each bidding period,

Northern will have up to five (5) business days to perform an analysis

to determine the best offer as described in Section 4) below. The

bidding process must be completed three (3) months before the end of

the existing contract term.

 

If any bid submitted by a bidder is subsequently withdrawn, any new

bids submitted by such bidder for the same capacity or path(s) must be

at a higher rate.

 

Northern will have the right to reject, on a non-discriminatory basis,

any bid not at the maximum rate.

 

3) Contents of Bid

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Service Agreements, corresponding to the Shipper's bid, will be

required and must contain the price, term, amount of capacity desired

and primary receipt and delivery points.

 

When any Shipper bids the maximum rate, such Shipper is only required

to bid up to the maximum rate for its requested receipt and delivery

points, not the maximum rate which may apply to different receipt and

delivery points which could be charged for such service.

 

Multiple bids for transportation capacity, defined as different bids

made for different portions of the total capacity, will be permitted.

 

Bidders for FDD capacity may submit bids on one or more packages of FDD

capacity; provided, however, bidders may submit only one bid per

package. In the event that bidder submits bids on more than one FDD

package, then bidder must prioritize its bids and indicate a minimum

and maximum total cycle quantity desired.