Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 06/11/2007, Docket: RP07-446-000, Status: Effective
Fifth Revised Sheet No. 305 Fifth Revised Sheet No. 305 : Effective
Superseding: Fourth Revised Sheet No. 305
56. SEGMENTATION OF CAPACITY
Segmentation may be accomplished in Northern's Market and Field Areas by submitting
a request in accordance with Section 26, "Requests for Service" and Section 27,
"Information Required for a Request for Service," of the GENERAL TERMS AND
CONDITIONS of this Tariff.
A. MARKET AREA
1. A Shipper utilizing firm transportation service under Rate Schedules
included in Northern's F.E.R.C. Gas Tariff may request, subject to the
limitations set forth below, to segment its Market Area contractual firm
entitlement into two segments as follows:
a. A Segmentation Point shall be established for Market Area capacity and
shall be the Market Area Segmentation Point and Market Area Segmentation
Deferred Delivery Point. These segmentation points are only valid for
nominations on the segmented contracts. A Shipper's segmented
entitlement will be separated into two separate service agreements, one
for the Access Segment and another for the Delivery Segment.
b. Access Segment: The "Access Segment" shall be from the Shipper's
Primary Receipt Point, excluding non-physical pooling points, to the
applicable Segmentation Point. The Access Segment MDQ shall be limited
to the available MDQ in the Shipper's service agreement. Alternate
physical receipt points shall be available within MID 17. The Access
Segment shall use the applicable Segmentation Point as its delivery
point. Volumes delivered to the Segmentation Point shall not be subject
to otherwise-applicable commodity rates or mainline fuel charges.
c. Delivery Segment: The "Delivery Segment" shall be from the Market Area
Segmentation Point to the Shipper's Primary Delivery Point. The
Delivery Segment shall be limited to the available MDQ in the Shipper's
Service Agreement, and shall be subject to all applicable transportation
rates and charges provided thereunder. The Delivery Segment shall use
the Market Area Segmentation Point as its receipt point.
2. All nominations for both the Access and Delivery Segments must be balanced
at the Market Area Segmentation Point during each nomination cycle.
Shipper may exercise virtual segmentation rights for its own use by making
a nomination to utilize the Market Area Segmentation Point; or by posting
and releasing capacity pursuant to the terms of Section 47 of the GENERAL
TERMS AND CONDITIONS. Segmented firm service agreements shall be treated
as all other firm agreements under this Tariff for purposes of nominations
and scheduling, except that deliveries to and receipts from the Market Area
Segmentation Points shall have an alternate scheduling priority.