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Training. NNG - Limited Firm Transportation Service - (LFT). Effective Date: June 17 th , 2001. Limited Firm Transportation (LFT). What is LFT Service?

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  1. Training NNG - Limited Firm Transportation Service - (LFT) Effective Date: June 17th, 2001

  2. Limited Firm Transportation (LFT) • What is LFT Service? New Rate Schedule that is available for transportation of natural gas pursuant to a Firm Throughput Service By Northern Natural Gas Company under certain terms and conditions: • Available year round in the Field Area and during the months of April through October in the Market area; • Northern determines that sufficient capacity exists to provide the service requested by shipper; • Shipper has executed a Firm Throughput Service Agreement (“LFT Agreement”); • Applicability and Character of Service • How does this new service relate to TMS’ nomination, scheduling and allocation procedures? • Relevant Points of Interest • NNG F.E.R.C. Gas Tariff, Fifth Revised Volume No.1: Sheets No. 125A – 125F • Rate Schedule LFT ( Firm Throughput Service)

  3. Agenda • Contract System Validations • Nomination Rules • Internet : Posting Process • Scheduling/Allocation Rules • Confirmation • Reporting • Invoicing Changes

  4. Overview • The Big Picture: • What is a LFT DAY? It can be any day of the month that the pipeline determines LFT service is not available, but it cannot exceed the contract limit. If an LFT day has not been called then normal tariff allocation rules will apply. Nomination Contracts TMS Balance Cycles Allocation Internet Invoice Scheduling Reports

  5. Vocabulary • Glossary of terms: • LFT - Limited Firm Transportation ( service) • LFT DAY - Any day of the month that the pipeline determines LFT service is not available, but it cannot exceed the contract limit. • LFT Counter - An indicator in the rollover and balance process to track the number of days that a LFT contract has been flagged as “not available” based on the contract and points where no LFT was available.. • Partial Limited Day- LFT shipper's MDQ is reduced down to a partial amount ; I.e., 50% • LFT percentages - Percentage of LFT determined and allowed to be scheduled for any given LFT day. • LFT Notice - A system wide notice posted on the Internet/EBB with simultaneous e- mail notices sent to all LFT shippers

  6. Contract System Validations • The contract system (CMS) has been updated to add this new contract rate schedule (LFT). CMS provides validations as follows: • Specifies Term of LFT Agreement • Example: NO LFT in Market Area during the Winter Months (November through March) (manual validation) • Specifies Maximum Number of Limited Days • Example: Cannot exceed 10 days. (This is the maximum number of days allowed for the pipeline to not allow this service,but each contract might have a different number of days that could be less than 10 days • Firm service type • Maximum Daily Quantity (MDQ) • Minimum MDQ applicable • (50 MMBtu per day) • Specifies Primary Points of Receipt • Specifies Primary Points of Delivery • Pools can only be alternate points

  7. Internet • Posting of available capacity for service under LFT : • LFT capacity available for one month or up to a one month term will be posted on NNG’s Internet website for a minimum of (1) day prior to awarding capacity; LFT capacity available for more than a (1) month term will be posted on the Internet Website for a minimum of (2) days

  8. Nomination Rules • The nomination validation rules that we currently have in the system today for firm contract types would apply for this new LFT service, all validation rules are identical to TF service. This includes on-line and EDI validations, error messages, and warning messages. • The primary and secondary point capacity rules for LFT contracts will follow the same rules as TF contracts. ( Pools can only be alternate points. )

  9. Calling an LFT DAY: Tools you can use • TMS ON-LINE view: Gas Control Coordinators can view LFT contracts that are nominated at a point, group or area by gas day.

  10. Internet • Notification Process that a Limited Day Has Been Declared qThis will consist of a system wide notice posted on the Internet/EBB with simultaneous e-mail notices sent to all LFT shippers. The deadline for posting is 26 hours prior to gas flow (7:00am on the day timely nominations are due), unless otherwise mutually agreed.

  11. Scheduling/Allocation Rules • The rollover and balance process will validate if an LFT day has been called. Each LFT contract will maintain an indicator in the rollover and balance process to track the number of days that it has been flagged as “not available”.Once a Limited Day has been posted, each LFT contract with primary points in the area affected will not be scheduled and have its counter incremented by one. • If a partial limited day has been decided, the LFT shipper's MDQ is scheduled down to his partial amount during the rollover and balance process. The remaining capacity will be treated and scheduled like any other firm service.

  12. Scheduling/Allocation Rules

  13. Scheduling/Allocation Rules

  14. Scheduling/Allocation Rules

  15. Scheduling/Allocation Rules

  16. Scheduling/Allocation Rules

  17. Confirmation • Service will be confirmed by operators just like any other transportation service we offer today.

  18. Reporting LFT Contracts are available to print via qOn-line Crystal reports, Scheduled Quantity Report for Shippers and Operators. qEDI scheduled quantity files (Shipper and Operator ) qThe Location Recap Report qThe Scheduled Path for Location qThe Pool/Zone Activity screen qTMS On-line view of LFT contracts, percentages, retrievable by gas day listing applicable point, group or area;etc.

  19. Invoicing Changes – Manual Process q  Will use LFT rate schedule for invoice system to bill Limited Firm service. (LFT Service Type) qLFT flag in the rollover and balance process to be stored on a daily basis so that the demand invoices can be calculated correctly at a contract level.

  20. Summary • LFT Service New Firm Thoughput Service available on NNG • Systems Impacted TMS, CMS, Internet, Invoicing • Applicability and Character of Service General Conditions/Terms • Feedback Contracts Nomination TMS Balance Cycles Allocation Internet Scheduling Invoice Reports

  21. Where to Get More Information • Other Training Sessions • Team Training Available • Individual Sessions • Further Reference Material • NNG’s F.E.R.C. Tariff • Questions: • Contact Customer Support Systems

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