Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 08/01/2004, Docket: RP04-155-001, Status: Effective

Substitute Fifth Revised Sheet No. 299A Substitute Fifth Revised Sheet No. 299A : Effective

Superseding: Fifth Revised Sheet No. 299A

GENERAL TERMS AND CONDITIONS

 

5) Match

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A. Firm Transportation Service:

 

The original firm Shipper shall have the option to execute a firm Service

Agreement which exactly matches the rate and term of the bid constituting

the highest economic unit value to Northern. The highest rate that the

original firm shipper must match if it wishes to continue its service

arrangement is the maximum tariff rate. The original firm Shipper need

only match the quantity bid if the quantity bid is less than the quantity

offered under Section 1 above. Northern will notify the original firm

Shipper within five (5) work days of the best offer it must match by

tendering to such Shipper a Service Agreement. The Service Agreement must

be executed by the original firm Shipper within fifteen (15) days of

Northern's tender thereof. Northern is not required to accept an offer at

less than the maximum rate.

 

B. Firm Deferred Delivery (FDD) Service:

 

The original FDD Shipper shall have the option to execute a FDD Service

Agreement which exactly matches the rate and term of the bid constituting

the highest economic unit value to Northern, subject to the following.

The original Shipper is not required to match the quantity offered. The

highest rate that the original FDD shipper must match if it wishes to

continue its service arrangement is the maximum tariff rate.

 

1. Northern will notify the original FDD Shipper within five (5) work

days of the close of the bidding process of the various bids received

for its capacity.

 

2. The original Shipper must provide written notice to Northern within

fifteen (15) days of the date of Northern's notification as to which

of the prioritized bids the original Shipper is willing to match. The

original Shipper may not be required to match all bids. In the event

bids received on the Shipper's capacity are for a quantity that is

less than the Shipper's capacity, then the original Shipper must

include in the notice to Northern a statement of its commitment to

continue service for the capacity for which there were no bids. Such

notice to Northern shall be binding upon the original Shipper.

 

3. Northern will determine the best offer(s) that the original Shipper

must match based on the priority provided to Northern by bidders.

 

4. Upon tendering a Service Agreement for the best offer, such Service

Agreement must be executed by the original FDD Shipper within fifteen

(15) days. Northern is not required to accept an offer at less than

the maximum rate.

 

6) No Bids

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Where there are no competing bids for the capacity and the original firm

Shipper agrees to pay the maximum rate, service may be contracted for

any term the original firm Shipper chooses. Northern is not required to

accept an offer at less than the maximum rate. If Northern rejects a

bid at less than the maximum rate, the original Shipper may receive

continued service at the maximum rate unless a negotiated rate is agreed

to by Northern and the original Shipper. The original firm Shipper must

execute the Service Agreement within fifteen (15) days of Northern's

tender thereof.