TSP Name: Northern Natural Gas Company TSP: 784158214 Notice ID: 067663 Notice Type: TSP Capacity Offering Subject: 2023 HAZEL RECEIPT POINT EXPANSION OPEN SEASON Critical: N Post Date/Time: 11/22/2022 02:30 PM Notice Status: Terminate For Gas Day(s): 11/22/2022 - 12/06/2022 Notice Effective Date/Time: 11/22/2022 02:30 PM Notice End Date/Time: 12/06/2022 05:00 PM Required Response Indicator Description: 5-No response required Notice Text: Northern Natural Gas Company (Northern) is hereby soliciting binding bids for firm throughput service from NBPL/NNG Hazel (POI 79244) to delivery points located on the north end of the Aberdeen, South Dakota, branch line in Northern's Market Area (LINK TO MAP) for firm service to commence on the targeted date of November 1, 2023, or later. Northern anticipates the construction of facilities will be required to provide requested service (Project). Interested customers may request firm throughput service by submitting a signed binding Bid Form. Customers requesting service are responsible for ensuring arrangements have been made for any capacity necessary on any upstream or downstream pipeline for their volumes to be confirmed during the nomination and scheduling process. Northern will develop a Project subject to certain conditions including, but not limited to, securing contractual commitments for incremental firm throughput service with rates and terms sufficient to justify the Project economics, and receipt of all necessary regulatory approvals. The actual in-service date of the Project, or any portion thereof, is subject to the timing of regulatory approvals and the subsequent construction required. Northern reserves the right to include in the Project only service and facilities that Northern determines can be approved and in service on a timely basis. Open Season Timing The open season commences on November 22, 2022 and ends at 5:00 p.m. CCT on December 6,2022. To be considered in the open season, customer's signed binding Bid Form must be received by the close of the open season at 5:00 p.m. CCT on December 6, 2022. If you have any questions, please contact your Account Manager or Mike Barry at (402) 398-7105. Open Season Procedures Submit your binding Bid Form to Northern via email to NNGOpenSea@nngco.com . The Bid Form must include the requested volume, receipt point, delivery point(s), rate and term. 1. The following receipt point will be considered in this open season: NBPL/NNG Hazel (POI 79244) . 2. The reservation rate bid is binding for firm throughput service. The term of service for any bid must start on a November 1 or April 1, and end on a March 31 or an October 31. The bid quantity must be equal for each month across the winter season (November-March) and each month across the summer season (April-October) of the term of the bid, as applicable. 3. The rates necessary for service may change based on the actual costs of the Project. The actual costs will include any reservation charge credits paid by Northern to other customers as a result of the construction of the Project. A reservation rate higher than Northern's maximum tariff rate for firm service may be necessary to justify the Project economics. The term may be extended to cover construction costs. Alternatively, customers may pay Northern's maximum tariff rates and provide a contribution in aid of construction for its proportionate share of the construction costs. In the case of a required reservation rate that is higher than the maximum tariff rate or a longer term is required, the customer will be informed in writing of such reservation rate and term. Within 10 calendar days upon receipt of the notification from Northern of a higher reservation rate or longer term, customer shall provide written notice to Northern whether it is terminating its participation in the Project or agreeing to proceed with the Project at the higher reservation rate or longer term. If the customer fails to respond, the customer will be deemed to have terminated its participation. 4. The customer must sign an agreement for construction of the necessary facilities for the Project within 30 calendar days after tender by Northern. The agreement will be designed for the service requested by each customer, and obligates customer for its allocated share of capital costs. Northern and customer may agree to other terms specific to the facilities or service provided pursuant to this open season. 5. In the event bids can be served without facility modifications, capacity will be awarded to the highest bid(s) based on a determination of the best bid, or combination of bids that result in the highest net present value (NPV) of reservation revenue, on a per unit of capacity basis. Northern has the right to aggregate bids or portions of bids, that generate the highest total NPV to Northern. The NPV per unit will be determined by discounting the cash flow (using the FERC interest rate) generated from the reservation rate multiplied by the volume for each month, by bid, and then dividing the NPV by the maximum daily quantity bid. 6. Northern may consider contingencies in the bids. 7. Transportation contracts are to be executed by customers within 30 calendar days of tender by Northern. 8. Realignments may be considered as part of this open season. Customers will be responsible for the construction costs for any facility modifications required to provide any requested realignment. 9. Customer(s) must meet the creditworthiness provisions of Northern's Tariff. Upon request by Northern, customer shall provide appropriate credit assurance, including credit assurance for the construction of facilities, within 10 calendar days of Northern's request. 10. Capacity in the open season area will be reserved during the open season. 11. The results of this open season will be posted on Northern's website. Solicitation of Turn Back Capacity Firm customers who currently hold capacity in Northern's Market Area that may be used to reduce construction must notify Northern in writing if they wish to permanently relinquish their capacity. The written notification must be received by Northern prior to the expiration of the open season in order for Northern to determine the need for, extent, and feasibility of the use of such capacity for the proposed Project.