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

those points.


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

receipt/delivery pressures.


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.