Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 8-004, Status: Effective

Original Sheet No. 225 Original Sheet No. 225 : Effective









18. (c) TOP Surcharge Procedures


Northern shall calculate and charge the TOP Surcharge as



i) TOP Surcharge: The Take-Or-Pay Surcharge to be effective

February 1, 1990 through January 31, 1995, will be calculated

by dividing the Net Take-Or-Pay Settlement Costs by five years

and then by the annual sales and transportation volume of 1321

Bcf at 1000 Btu/cf used to establish Northern's May 1, 1989

settlement rates. This Take-Or-Pay Surcharge shall be

adjusted prospectively to reflect any change in the total

annual throughput volume determinants in Northern's future

general rate proceedings under Section 4 of the Natural Gas

Act during the five year period, February 1, 1990 through

January 31, 1995. Such adjustments to the Take-Or-Pay

Surcharge shall become effective upon the date(s) new rates

become effective in such future rate proceedings. All

Shippers of gas under Northern's Throughput Services Rate

Schedules shall be charged the applicable TOP Surcharge as set

forth on Sheet Nos. 50, 51, 52, and 53 of Volume No. 1 of

Northern's FERC Gas Tariff, multiplied by the quantity of gas

actually delivered during the billing month.


ii) TOP Litigation Exception Surcharge: The methodology for

calculation of the TOP Litigation Exception Surcharge shall be

identical to the procedures set forth for the TOP Surcharge as

detailed above, covering the period of March 1, 1990 through

February 28, 1995.