Northern Natural Gas Company
Fifth Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 04/17/2010, Docket: RP10-502-000, Status: Effective
Fifth Revised Sheet No. 266 Fifth Revised Sheet No. 266
Superseding: Fourth Revised Sheet No. 266
GENERAL TERMS AND CONDITIONS
31. RECEIPT POINT SCHEDULING PENALTIES
If, at month's end, the sum of the actual daily quantities of natural gas received
by Northern at all Points of Receipt for each Shipper's Throughput Service
Agreement(s) varies from the sum of the quantities scheduled under each throughput
service agreement during the respective month for transportation at all Points of
Receipt, (either + or -) by greater than ten percent (10%), then Northern shall
impose on a non-discriminatory basis a penalty equal to the Market Area TI rate per
MMBtu for the difference between the sum of the actual total receipts during the
month and the sum of the quantities scheduled for receipt during the respective
month, less the tolerance level, except as provided below. Points in each
Shipper's throughput Service Agreement(s) which are on Northern's contiguous
mainline system may be aggregated for purposes of determining this penalty.
Northern's contiguous mainline system refers to facilities which directly connect
to, or are located on, Northern's mainline transmission system. Any penalty
calculated that is less than five hundred dollars ($500) will be waived.
Shipper's actual and scheduled volumes, at points connected to Northern's
contiguous mainline system, shall be aggregated at the Shipper level prior to
In order to protect system integrity, Northern may, after giving shippers
forty-eight hours notice, implement the penalty on a system level, or a specific
mainline Point of Receipt. For purposes of this Section, "system level" shall mean
any combination of two (2) or more compressor stations in the same geographical
area. The monthly penalty will then apply at those designated point(s) for the
remainder of the billing month, unless system integrity is no longer in jeopardy.
Upon such determination, Northern will so notify Shippers and the penalty shall
again apply on a Service Agreement basis from the date of such notice.
In the event of Receipt Point Supply Shortfall or Excess situations, as described
on Sheet No. 227, a daily receipt point scheduling penalty may apply at each
specific receipt point. The penalty will be $10.00 per MMBtu. In supply shortfall
situations, the penalty will be assessed on the amount that actual receipts are
less than scheduled receipts for the day, after a tolerance equal to the greater of
50 Mcf or seven percent (7%) of scheduled volumes has been applied. In supply
excess situations, the penalty will be assessed on the amount that actual receipts
are greater than scheduled receipts for the day, after a tolerance equal to the
greater of 50 Mcf or seven percent (7%) of scheduled volumes has been applied.
Northern shall waive such penalty or portion thereof if such penalty was the result
of a Force Majeure condition on Northern's system or Northern determines that it
incorrectly scheduled the volumes. A force majeure situation not on Northern's
system will not relieve Shipper of scheduling penalties except as set forth below.
Written notification to Northern within forty-eight (48) hours (or as promptly as
possible) of a verifiable force majeure on an upstream pipeline will result in
waiver of the scheduling penalty for those volumes within such forty-eight (48)
hour period. Any waiver will be applied on a nondiscriminatory basis.
Revenues associated with these penalties shall be credited to Shippers in
accordance with Section 57 of the GENERAL TERMS AND CONDITIONS of this Tariff.
Receipt point volumes which can be independently verified by Northern (verifiable
receipt point volume) will not be subject to the monthly receipt scheduling
In the event a Shipper would be assessed both a receipt point scheduling penalty
and DDVC charge for the same scheduling variance from a receipt point to a delivery
point, Northern will charge the Shipper the higher of the receipt point scheduling
penalty or the DDVC charge, but not both.