Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 09/22/2007, Docket: RP00-404-020, Status: Effective

Substitute Fourth Revised Sheet No. 305A Substitute Fourth Revised Sheet No. 305A : Effective

Superseding: Third Revised Sheet No. 305A

B. FIELD AREA -

A Shipper utilizing firm transportation service under TF and TFX Rate Schedules included in

Northern's F.E.R.C. Gas Tariff may, subject to the limitations set forth below, segment its

Field Area contractual firm entitlement.

1. Northern shall grant Field Area segmentation if the criteria listed below are met. If

the Field Area segmentation involves the release of capacity, the requirements of

Section 47 of the GENERAL TERMS AND CONDITIONS of this Tariff must be satisfied.

2. General Criteria for Segmentation in Northern's Field Area. The following criteria for

segmentation have been established to ensure that segmentation is provided to the

greatest extent possible without detriment to, or degradation of, any Shipper's

service.

a. The boundary between MID 7 and MID 8, hereinafter referred to as the MID 7B

Segmentation Point, shall be established for purposes of Field Area segmentation.

An associated MID 7B Segmentation Point Deferred Delivery location shall also be

established.

b. Field Area segmentation will be permitted as long as the Shipper's existing contract

has a primary receipt point located south of the MID 7B Segmentation Point and a

primary delivery point located north of the MID 7B Segmentation Point

(or vice-versa).

c. The segmented MDQ shall be limited to the available MDQ on the Shipper's service

agreement. The Shipper will retain its existing contract, and the same MDQ assigned

to both the Shipper's primary receipt point(s) south of the MID 7B Segmentation

Point and the primary delivery point(s) north of the MID 7B Segmentation Point will

be available to the Shipper in both the south and north segments, respectively.

Shipper nominations that are at or below the MDQ in the segment will be scheduled on

a primary or alternate basis. Shipper nominations that exceed the MDQ in the

segment will be scheduled on an interruptible basis. Furthermore, nominations

within the segment that are scheduled on an alternate basis will be designated as

Alternate 1 (for nominations within the path) or Alternate 2 (for nominations

outside the path).

d. Shipper may realign primary receipt or delivery point(s), subject to capacity

availability, other than the MID 7B Segmentation Point. This includes segmented

contracts acquired under capacity release.

e. To the extent it is operationally feasible and subject to subpart 2(d), a segmented

transaction consisting of a backhaul and a forwardhaul nominated to the same point

will be permitted to the extent capacity is available at the delivery point. The

forwardhaul and backhaul delivered to the same point can exceed the MDQ of the

original agreement.

f. All original contract provisions regarding rates apply to the segmented contracts.

The reservation charge will be billed on the contract(s) as agreed to by Northern

and the Shipper. The commodity rates and fuel use and unaccounted for will be

billed on the contracts that have been nominated during the month.

g. If a contract segment is released, Northern's capacity release tariff provisions

will apply, including all provisions for rates and billing.