Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 09/29/2010, Docket: RP10-1109-000, Status: Effective
First Revised Sheet No. 289B First Revised Sheet No. 289B
Superseding: Original Sheet No. 289B
GENERAL TERMS AND CONDITIONS
For recall notification provided to Northern after 5:00 p.m. and prior to 7:00 a.m., Northern
should provide notification to all affected replacement Shippers no later than 8:00 a.m.
after receipt of such recall notification (CCT).
When a releasing Shipper with recall rights desires to recall its capacity during an Intra-Day
cycle, Northern's capacity release system will indicate to such Shipper the capacity available
for recall based upon the EPC. Therefore, the releasing Shipper's recall notification to
Northern would reflect the adjusted total released capacity entitlement.
Northern shall not be obligated to deliver in excess of the total daily contract quantity of
The amount of capacity allocated to the replacement Shipper(s) should equal the original
released capacity less the recalled capacity that is adjusted based upon the EPC.
When capacity is recalled, it may not be reput for the same Gas Day.
P. Index-Based Capacity Releases
For index-based capacity release transactions, Rate Floor is the term used to describe the
lowest rate specified in the capacity release offer in dollars and cents that is acceptable to
the releasing Shipper. The Rate Floor may not be less than Northern's minimum reservation rate
or zero cents when there is no stated minimum reservation rate.
For index-based capacity release transactions, the capacity release facilitator should support
a Rate Floor to be specified by the releasing Shipper in the capacity release offer.
For index-based capacity release transactions, Northern should support the ability of a
releasing Shipper to specify in the capacity release offer a non-biddable Rate Default. The
Rate Default cannot be less than the Rate Floor, if any.
For index-based capacity release transactions, the releasing Shipper must specify which one of
the following methods is acceptable for bidding on a given index-based capacity release offer:
o percentage of the formula,
o dollars and cents differential from the formula,
o dollars and cents differential from the Rate Floor, or
o an approved methodology in this Tariff, if any.
When bidding is based upon a dollars and cents differential from the Rate Floor, the invoiced
rate for the award will be calculated as the greater of (i) the result of the formula or (ii)
the Rate Floor plus the high bid's differential, both not to exceed Northern's maximum
reservation rate, if applicable.
The releasing Shipper may specify another method in the special terms and conditions, but the
capacity release offer may not be processed within the capacity release timeline pursuant to
NAESB WGQ Standard No. 5.3.2.
Unless otherwise specified in this Tariff, for index-based capacity release transactions where
the result of the award is to be applied on a monthly basis, and the formula detailed in the
capacity release award requires calculations on a daily basis, the results of such daily
calculations may exceed the applicable maximum daily reservation rate or be less than the
applicable minimum daily reservation rate. However, any resulting monthly reservation rate may
not exceed Northern's maximum monthly reservation rate, as applicable, or be less than the
Rate Floor specified in the capacity release award.