Northern Natural Gas Company

Fifth Revised Volume No. 1

Effective Date: 12/31/9999, Docket: RP00-404-007, Status: Accepted

Second Revised Sheet No. 305 Second Revised Sheet No. 305 : Pending

Superseding: Sheet No. 305

56. SEGMENTATION OF CAPACITY

Segmentation may be accomplished in Northern's Market and Field Areas by submitting

a written request in accordance with Section 26, "Requests for Throughput Service"

and Section 27, "Information Required for a Valid Request" 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 Pooling Point shall be established for Market Area

capacity and shall be the MID 17 Segmentation Pooling Point. 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 Pooling Point. The Access Segment MDQ shall

be limited to the available MDQ in the Shipper's service agreement.

Alternate receipt points shall be available within MID 17. The Access

Segment shall use the applicable Segmentation Pooling Point as

its delivery point. Volumes delivered to the Segmentation Pooling

Point shall not be subject to otherwise-applicable commodity rates or

mainline fuel charges.

c. Delivery Segment: The "Delivery Segment" shall be from the MID 17

Segmentation Pooling 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 MID 17 Segmentation Pooling Point as its receipt

point.

2. All nominations for both the Access and Delivery Segments must be balanced

at the MID 17 Segmentation Pooling Point during each nomination cycle.

Shipper may exercise virtual segmentation rights for its own use by making

a nomination to utilize the MID 17 Segmentation Pooling 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 MID 17 Segmentation Pooling Points shall have an alternate scheduling

priority.