Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 12/31/9999, Docket: RP00-404-007, Status: Accepted
Original Sheet No. 305B Original Sheet No. 305B : Pending
3. Implementation of Segmentation in the Field Area. The following contracting
and allocation of capacity provisions are required to accommodate Field Area
segmented transactions in keeping with the criteria enumerated above.
a. In the event Shipper has a Field Area TF or TFX Throughput Service
agreement with multiple primary receipts and delivery points, Shipper
must first amend its original agreement to provide for multiple
agreements containing either only one primary receipt point and/or one
primary delivery point. The sum of the MDQs of the primary receipt and
delivery points on these agreements must equal the MDQ of primary
receipt and delivery points of the currently effective service
agreement. Shipper may then further amend these agreements to provide
for a segmented agreement.
b. A Shipper nominating under a segmented agreement may only nominate
points of receipt and delivery on its segmented agreement.
c. Field Area segmented capacity shall have an alternate scheduling
priority, that is, after primary point capacity and before
interruptible point capacity. Such segmented capacity shall be
allocated on a pro rata basis with other alternate point nominations.
However, Shippers nominating the primary points on a segmented
agreement will maintain their primary point scheduling priority at
d. If the Shipper's nominations on a Field Area segmented agreement exceed
the capacity on such agreement, then the amount nominated above such
capacity will be nominated on an interruptible basis.
e. The segmented agreement with the primary delivery point will be billed
the contractual reservation charges and reservation surcharges under
the original agreement. Commodity charges, commodity surcharges and
fuel and unaccounted for will be assessed on the agreement on which the
volumes are scheduled. The segmented agreement with the primary
receipt point will be billed only commodity changes, commodity
surcharges, and fuel and unaccounted for, as appropriate.
f. To the extent it is operationally feasible, a segmented transaction
consisting of a backhaul and a forwardhaul to the same point may be
permitted to the extent capacity is available at the delivery point.
Such transactions would be scheduled on an alternate basis.
4. After approval, the right to segment in Northern's Field Area can only be
suspended under the following circumstances:
a. A system operational concern requiring an SOL/SUL/Critical Day notice
affecting the segmented transaction (the suspension would be for the
term of the SOL/SUL/Critical Day).
b. Changed Field Area capacity demands on the system that would impair the
ability to continue the segmented transaction. Such changes could be
the result of facility changes, incremental firm contract requirements,
changes to other operational criteria such as gas quality or necessary
Northern will provide the Field Area segmenting Shipper at least a
10-day notice in advance of a suspension of segmentation. However, for the
suspensions required for SOL/SUL/Critical Day periods, the notice period
will be the same as required for SOL/SUL/Critical Days.
C. Control of Segmentation. In addition to the criteria established in this
Section 56, Northern reserves the right at any time to control or restrict
segmentation when, in Northern's sole discretion, such segmentation would result
in a degradation of service or pose a threat to the sound operation of
Northern's system. Such control or restriction may be necessary to ensure that
critically sourced gas is available when and where it is needed during times of
normal, as well as critical, operations. Such control will be exerted through
the issuance of SOL/SUL/Critical Day notices.