NNG - Tariff - Ninth Revised Sheet No. 268
Northern Natural Gas Company Ninth Revised Sheet No. 268
FERC Gas Tariff Superseding
Fifth Revised Volume No. 1 Eighth Revised Sheet No. 268
GENERAL TERMS AND CONDITIONS
D. Tiering of MIPs
Except for Small Customers, the Market Area, Field Area, or Gulf Coast MIP is
tiered based upon the monthly imbalance level of the legal entity, in
accordance with the following schedule:
Imbalance Level* Due Northern Due Shipper
--------------- --------------- --------------
0% - 3% HIGH MIP * 1.00 LOW MIP * 1.00
Greater than 3% up to 5% HIGH MIP * 1.02 LOW MIP * 0.98
Greater than 5% up to 10% HIGH MIP * 1.10 LOW MIP * 0.90
Greater than 10% up to 15% HIGH MIP * 1.20 LOW MIP * 0.80
Greater than 15% up to 20% HIGH MIP * 1.30 LOW MIP * 0.70
Greater than 20% HIGH MIP * 1.40 LOW MIP * 0.60
*The imbalance level is determined by dividing the legal entity's monthly
Volumetric Imbalance by its monthly deliveries. Such monthly deliveries shall
exclude Shipper's deliveries under MPS agreements, solely for purposes of
calculating Shipper's transportation imbalances percentage.
For any legal entity listed as a Small Customer on Sheet No. 510 of this
Tariff, tiering shall be as set forth above, except the imbalance level
and associated valuation applicable for the first tier of MIP * 1.00 is
equal to the greater of 1,000 MMBtu or 3%.
The tier valuation factors listed above will be applied to the portion of
the imbalance level which falls within each tier.
Delivery Point Operators shall have the ability to determine the imbalance
level by an alternate method ("alternate imbalance level determination"),
subject to the following:
If Northern is transporting gas to a Point(s) of Delivery which is
within an Operational Zone and, billing of the last-through-the-meter
methodology as described in Section 30 of the GENERAL TERMS AND CONDITIONS
of this Tariff is employed, then the Delivery Point Operator's imbalance
level shall be determined by dividing the operator's monthly volumetric
imbalance by all volumes delivered to the point for the month that are
subject to the last through-the-meter methodology, assuming prior to the
beginning of any month Northern has been provided the legal entity(s)
delivering to the Delivery Point Operator's Operational Zone for the month
and that such volumes, for purposes of imbalance level determination, are
to be used by the Delivery Point Operator. This alternate imbalance level
determination will be used only when the Delivery Point Operator's monthly
imbalance level exceeds 3%.
E. Applicability of MIPs
(i) To determine the Dollar Valuation of a Shipper's Volumetric Imbalance,
the following factors are applicable:
(a) For Volumetric Imbalances where the Shipper's monthly deliveries exceed
the Shipper's monthly receipts (Shipper owes Northern), the Dollar
Valuation is calculated by multiplying the monthly Volumetric Imbalance
by the "Due Northern" High Market Area, High Field Area, or Average
Gulf Coast MIP, as tiered for the Shipper's imbalance level.
(b) For Volumetric Imbalances where the Shipper's monthly receipts exceed
the Shipper's monthly deliveries (Northern owes Shipper), the Dollar
Valuation is calculated by multiplying the monthly Volumetric Imbalance
by the "Due Shipper" Low Market Area, Low Field Area, or Average Gulf
Coast MIP, as tiered for the Shipper's imbalance level.
(c) For Volumetric Imbalances created at Northern's request for
operational reasons, the Dollar Valuation is calculated by
multiplying the Average Market Area, Average Field Area, or
Average Gulf Coast MIP by the Volumetric Imbalance for the
applicable month.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: March 17, 2010 Effective: April 17, 2010
