NNG - Tariff - Substitute Sixth Revised Sheet No. 297
Northern Natural Gas Company Substitute Sixth Revised Sheet No. 297
FERC Gas Tariff Superseding
Fifth Revised Volume No. 1 Sixth Revised Sheet No. 297
GENERAL TERMS AND CONDITIONS
52. RIGHT OF FIRST REFUSAL
----------------------
Shippers holding firm Agreements at maximum rates with a term of
twelve (12) or more consecutive months of service or for a term of
more than one (1) year for service not available for twelve
consecutive months may exercise the Right of First Refusal. Such
agreements are not subject to pregranted abandonment provided
notice is given as described herein. A Shipper may agree to waive
its Right of First Refusal at any time. Firm Service Agreements
at discounted rates entered into prior to March 27, 2000, with a
term equal to or greater than one (1) year, retain the Right of
First Refusal; however, any such grandfathered service agreement
must extend at maximum rates for twelve (12) or more consecutive
months of service or for a term of more than one (1) year for
service not available for twelve consecutive months in order to
retain its Right of First Refusal beyond the extended term.
Any Shipper with a contract having Right of First Refusal who
wishes to extend their contract at maximum rates for a term of at
least five (5) years, can be extended without exercising the Right
of First Refusal process or posting. A firm Shipper may elect to
retain a portion of its capacity, subject to the Right of First
Refusal process and have Northern's pregranted abandonment
authority apply to the remainder of the capacity.
The Right of First Refusal will not be applicable to interim
service agreements for entitlement associated with (1) expansion
projects as set forth in Section 26 of this Tariff, and
(2) capacity that is already under contract for a future period
subject to the following conditions:
a) The future capacity must have been sold through an open
season bidding process permitting bids for capacity for
service to start immediately or anytime in the future;
b) the bids must have been evaluated on a net present value
basis; and
c) the future capacity must have been awarded to the Shipper
providing the highest net present value bid.
The process for exercising the Right of First Refusal is as
follows:
1) Notice
------
Northern will provide no more than nine (9) months, and no
less than eight (8) months advance written notice of pending
contract expiration to firm Shippers with contract terms of
one (1) year or more. Shippers must give written notice to
Northern within sixty (60) days of the date of Northern's
notification to Shipper that it wishes Northern to post its
capacity to begin the Right of First Refusal process.
Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: April 19, 2005 Effective: December 30, 2004
Filed to comply with order of the Federal Energy Regulatory Commission,
Docket No. RP03-398-012, issued March 25, 2005, 110 FERC 61,361
