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If any bid submitted by a bidder is subsequently withdrawn, any new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