TSP Name: Northern Natural Gas Company TSP: 784158214 Notice ID: 067253 Notice Type: Other Subject: AWARDING OF REQUESTS FOR NEAR-TERM SERVICE Critical: N Post Date/Time: 10/28/2022 08:59 AM Notice Status: Supersede Prior Notice: 062426 For Gas Day(s): 10/27/2022 - 12/31/2999 Notice Effective Date/Time: 10/28/2022 08:59 AM Notice End Date/Time: 12/31/2999 05:00 PM Required Response Indicator Description: 5-No response required Notice Text: This notice outlines the procedure that Northern will use to award requests for capacity received up to 7 business days prior to the effective date of such request, plus any consecutive term. Northern will accumulate all requests received until 2:00 p.m. CCT and perform an NPV1 evaluation. Northern will process only those incremental requests2 that have a start date within the following morning's next day trading block, as defined by the Intercontinental Exchange (ICE). Northern will only award capacity to requests, or portions of requests, for which there is not a higher NPV request. Higher NPV requests with a start date after the current trading block will continue to accumulate each day until the respective start date falls within the next day trading block.3 Incremental requests for available capacity received after 2:00 p.m. CCT that have a start date within the current ICE next day trading block, or sooner, will be processed and awarded in the order they are received.4 The shipper should state in its request the minimum term, minimum volume and any other primary receipt and delivery point(s) it is willing to accept. Northern reserves the right to reject any request(s) less than the maximum tariff rate. In addition, a shipper may request contiguous service and increase the value of its request. Contiguous service requests may contain one or more contiguous point(s) where the receipt point of one path is the same location as the delivery point of another path. For purposes of contiguous service requests, Northern will aggregate the NPV's of bids that contain the following contiguous points: Permian Pooling Point (POI #54009), Brownfield Pooling Point (POI #79387), Beaver Pooling Point (POI #54576), Mullinville Pooling Point (POI #54575), Mid Continent Pool (POI #61020), Bushton Pooling Point (POI #54577), and any of Northern's Field Area deferred delivery points associated with physical points. For evaluation purposes, the NPV calculation of a request with contiguous paths will be performed for each individual path and then added together for evaluation purposes. Northern reserves the right to (1) consider other contiguous points not denoted in this posting (2) reject all or portions of a contiguous service request that requires displacement of capacity in order to accommodate the combination of receipt and delivery points in a contract and (3) require that contiguous service requests be split into multiple contracts to manage capacity constraints. To the extent that a customer's request requires multiple contracts, Northern and customer may agree to adjust the MDQ, subject to available capacity, to account for fuel requirements. Customers that use storage points must have an active storage contract. Parties that do not have an active storage contract may request one in the bid. If any path in a request is less than maximum tariff rates, the overall contract rate is a discounted rate. In the event Northern requires multiple contracts to fulfill a discounted contiguous service request, the average discount rate will be applied to each contract. Notwithstanding the above, Northern may award capacity prior to the deadline above for (1) requests of 1 month or more if the start date of the request is the first day of a month (subject to Northern's capacity posting requirements), or (2) non-constrained areas. Northern may, from time to time, offer discounted or negotiated rates5 for transportation service. Shippers interested in transacting in the daily market and receiving information on potential rates should contact your marketing representative. 1 Northern will evaluate requests with a start date within 7 business days for any term based on consecutive days, or within 30 calendar days for a term of 1 month or more if the start date of the request is the first day of the upcoming month, 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 NPV to Northern. This will be determined by discounting the cash flow (using the FERC interest rate) generated from the transportation rate multiplied by the quantity for each day bid and then dividing the net present value by the peak maximum daily quantity bid. The assumed reservation component for fixed one-part rate bids will be as the one-part rate less: · $0.01/Dth/day for receipt points south of the Brownfield compressor station for delivery to points south of the Brownfield compressor station · $0.035/Dth/day for receipt points north of the Brownfield compressor station for delivery to points south of the Brownfield compressor station · $0.052/Dth/day for receipt points south of the Brownfield compressor station for delivery to points north of the Brownfield compressor station · $0.024/Dth/day for receipt points north of the Brownfield compressor station for delivery to points north of the Brownfield compressor station The deduction will only be applied once to a one-part contiguous bid. The NPV calculation shall include only revenues generated by the reservation rate or a guaranteed throughput quantity. In the event equivalent offers are submitted, the capacity will be awarded pro rata to the equal bidders. 2 Realignments will be processed, in the order they are received within 7 work days, after incremental requests. 3 Capacity for such requests will not be awarded until that request date falls within the next day trading block or is awarded to another request with a higher NPV. 4 Requests that have a term that extends beyond the ICE next day trading block will be evaluated with other requests for that capacity. 5 A negotiated rate is a rate than can exceed the maximum rate or be below the minimum rate for the applicable service. Rates within the minimum and maximum rates in Northern's tariff are not negotiated rates.