NNG - Tariff - Fifth Revised Sheet No. 305

Northern Natural Gas Company                                              Fifth Revised Sheet No. 305
FERC Gas Tariff                                                                           Superseding
Fifth Revised Volume No. 1                                               Fourth Revised Sheet No. 305




    56.  SEGMENTATION OF CAPACITY

         Segmentation may be accomplished in Northern's Market and Field Areas by submitting
         a request in accordance with Section 26, "Requests for Service" and Section 27,
         "Information Required for a Request for Service," of the GENERAL TERMS AND
         CONDITIONS of this Tariff.

         A.  MARKET AREA

             1.  A Shipper utilizing firm transportation service under Rate Schedules
                 included in Northern's F.E.R.C. Gas Tariff may request, subject to the
                 limitations set forth below, to segment its Market Area contractual firm
                 entitlement into two segments as follows:

                 a. A Segmentation Point shall be established for Market Area capacity and
                    shall be the Market Area Segmentation Point and Market Area Segmentation
                    Deferred Delivery Point. These segmentation points are only valid for
                    nominations on the segmented contracts.  A Shipper's segmented
                    entitlement will be separated into two separate service agreements, one
                    for the Access Segment and another for the Delivery Segment.

                 b. Access Segment:  The "Access Segment" shall be from the Shipper's
                    Primary Receipt Point, excluding non-physical pooling points, to the
                    applicable Segmentation Point.  The Access Segment MDQ shall be limited
                    to the available MDQ in the Shipper's service agreement.  Alternate
                    physical receipt points shall be available within MID 17.  The Access
                    Segment shall use the applicable Segmentation Point as its delivery
                    point.  Volumes delivered to the Segmentation Point shall not be subject
                    to otherwise-applicable commodity rates or mainline fuel charges.

                c.  Delivery Segment:  The "Delivery Segment" shall be from the Market Area
                    Segmentation Point to the Shipper's Primary Delivery Point.  The
                    Delivery Segment shall be limited to the available MDQ in the Shipper's
                    Service Agreement, and shall be subject to all applicable transportation
                    rates and charges provided thereunder.  The Delivery Segment shall use
                    the Market Area Segmentation Point as its receipt point.

             2.  All nominations for both the Access and Delivery Segments must be balanced
                 at the Market Area Segmentation Point during each nomination cycle.
                 Shipper may exercise virtual segmentation rights for its own use by making
                 a nomination to utilize the Market Area Segmentation Point; or by posting
                 and releasing capacity pursuant to the terms of Section 47 of the GENERAL
                 TERMS AND CONDITIONS.  Segmented firm service agreements shall be treated
                 as all other firm agreements under this Tariff for purposes of nominations
                 and scheduling, except that deliveries to and receipts from the Market Area
                 Segmentation Points shall have an alternate scheduling priority.











Issued by: Mary Kay Miller, V.P. Regulatory & Government Affairs
Issued on: May 11, 2007                                                     Effective: June 11, 2007