Northern Natural Gas Company
P.O. Box 3330
Omaha, NE 68103-0330
402 398-7200
January 18, 2016
TO ALL HOLDERS OF NORTHERN NATURAL GAS COMPANY’S FERC GAS
TARIFF, SIXTH REVISED VOLUME NO. 1 AND ORIGINAL VOLUME NO. 1A
Docket No. RP16-315
Non-Conforming Agreement
On December 21, 2015, Northern Natural Gas Company filed in Docket No. RP16-315-000
tariff records to reflect a non-conforming agreement with Essar Steel Minnesota LLC. On
January 12, 2016, the Federal Energy Regulatory Commission granted waiver of the
Commission’s 30-day notice requirement and accepted the revised tariff records noted below
to become effective January 20, 2016. A copy of the letter order is attached.
Sixth Revised Volume No. 1 Tariff Record
Effective January 20, 2016
Tenth Revised Sheet No. 80C
Original Volume No. 1A Tariff Record
Effective January 20, 2016
Twenty-Third Revised Section No. 1
Original Section No. 28
The above tariff records are to be inserted into your copy of Northern Natural Gas Company’s
FERC Gas Tariff, Sixth Revised Volume No. 1 and Original Volume No. 1A.
January 18, 2016
TO ALL HOLDERS
Page 2 of 2
This letter is available electronically at Letter. If you have any questions, please contact me
at (402) 398-7695 or at pam.lewis@nngco.com.
Sincerely,
/s/ Pam Lewis
Pam Lewis
Rates and Tariffs
Attachments
FEDERAL ENERGY REGULATORY COMMISSION
WASHINGTON, D.C. 20426
OFFICE OF ENERGY MARKET REGULATION
In Reply Refer To:
Letter Order Pursuant to
§§ 375.307(a)(7)(i) & (a)(7)(iv)
Northern Natural Gas Company
Docket No. RP16-315-000
January 12, 2016
Northern Natural Gas Company
1111 South 103rd Street
Omaha, NE 68124-1000
Attention:
Laura Demman, Vice President
Regulatory and Government Affairs
Reference:
Non-Conforming Agreement
Ladies and Gentlemen:
On December 21, 2015, Northern Natural Gas Company (Northern) filed revised
tariff records 1 to reflect a non-conforming agreement entered into with Essar Steel
Minnesota LLC (Essar) in the form of an Acknowledgement Agreement. The agreement
was entered into in response to Essar’s ongoing default under its contracts with
Northern. Northern requests waiver of the Commission’s regulations necessary to permit
the tariff records listed in Footnote No. 1 to become effective January 20, 2016. We
grant waiver of the Commission’s 30-day notice requirement and accept the tariff records
listed in Footnote No. 1, effective January 20, 2016.
Public notice of the filing was issued on December 23, 2015. Interventions and
protests were due as provided in section 154.210 of the Commission’s regulations (18
C.F.R § 154.210 (2015)). Pursuant to Rule 214 (18 C.F.R. § 385.214 (2015)), all timely
filed motions to intervene and any unopposed motion to intervene out-of-time filed
before the issuance date of this order are granted. Granting late intervention at this stage
1
Northern Natural Gas Company, FERC NGA Gas Tariff, Gas Tariffs, Sheet No.
80C, Non-conforming Service Agreements, 10.0.0; Section No. 1, Table of Contents,
23.0.0 and Section No. 28, Essar Steel Acknowledgement Agreement, 0.0.0.
Docket No. RP16-315-000
-2-
of the proceeding will not disrupt the proceeding or place additional burdens on existing
parties. No protests or adverse comments were filed.
This acceptance for filing shall not be construed as a waiver of the requirements of
section 7 of the Natural Gas Act, as amended; nor shall it be construed as constituting
approval of the referenced filing or of any rate, charge, classification, or any rule,
regulation, or practice affecting such rate or service contained in your tariff; nor shall
such acceptance be deemed as recognition of any claimed contractual right or obligation
associated therewith; and such acceptance is without prejudice to any findings or orders
which have been or may hereafter be made by the Commission in any proceeding now
pending or hereafter instituted by or against your company.
This order constitutes final agency action. Requests for rehearing by the
Commission may be filed within 30 days of the date of issuance of this order, pursuant to
18 C.F.R. § 385.713 (2015).
Sincerely,
Nils Nichols, Director
Division of Pipeline Regulation
Tariff record(s) to be inserted into your copy of
Northern Natural Gas Company’s FERC Gas Tariff, Sixth Revised Volume No. 1
Northern Natural Gas Company
FERC Gas Tariff
Sixth Revised Volume No. 1
Tenth Revised Sheet No. 80C
Superseding
Ninth Revised Sheet No. 80C
NON-CONFORMING SERVICE AGREEMENTS
Name of Shipper/Agreement No.
Metropolitan Utilities District
of Omaha
Contract 600044
Rate
Schedule
Agreement/
Amendment
Date
Date
Filed___
Agreement
01/24/05
06/15/11
Denver City Energy Associates, L.P.
GS Electric Generating Cooperative, Inc.
Contract 103807
IDD
10/01/98
06/15/11
Denver City Energy Associates, L.P.
GS Electric Generating Cooperative, Inc.
Contract 103810
TI
10/01/98
06/15/11
TFX
10/01/13
09/30/13
12/14/15
12/21/15
Essar Steel Minnesota LLC
Contract 123116
Amendment 3
Reimbursement Agreement
Acknowledgement Agreement
Issued On: December 21, 2015
Effective On: January 20, 2016
Tariff record(s) to be inserted into your copy of
Northern Natural Gas Company’s FERC Gas Tariff, Original Volume No. 1A
ORIGINAL VOLUME NO. 1A
TWENTY-SECOND REVISED SECTION NO. 1
TABLE OF CONTENTS
NON-CONFORMING SERVICE AGREEMENTS
Name of Shipper/Agreement No.
Rate
Schedule
Agreement/
Amendment
Date
Date
Filed
Section Nos.
Golden Spread Electric
Cooperative, Inc.
Contract 121637
TFX
01/01/11
11/18/10
6
Golden Spread Electric
Cooperative, Inc.
Contract 121647
SMS
01/01/11
11/18/10
7
MidAmerican Energy Company
Contract 116047
Amendment 3
TFX
11/01/11
03/25/11
11
Agreement
01/24/05
06/15/11
14
Denver City Energy Associates, L.P.
GS Electric Generating Cooperative, Inc.
Contract 103807
IDD
10/01/98
06/15/11
15
Denver City Energy Associates, L.P.
GS Electric Generating Cooperative, Inc.
Contract 103810
TI
10/01/98
06/15/11
16
Essar Steel Minnesota LLC
Contract 123116
Amendment 3
Reimbursement Agreement
TFX
10/01/13
09/30/13
17
CenterPoint Energy Minnesota Gas
Contract No. 111464
Amendment 50
TFX
01/01/13
11/21/12
22
Metropolitan Utilities District
Contract 21385
Amendment 61
TF
01/01/13
11/21/12
23
Semco Energy Gas Company
Contract 110025
Amendment 52
TF
05/01/13
03/29/13
24
Flint Hills Resources, LP
Contract 111404
Amendment 7
TFX
12/01/13
10/31/13
26
Black Hills Utility Holdings, Inc.
Contract No. 111169
Amendment 5
TFX
04/01/14
02/28/14
27
12/14/15
12/21/15
28
Metropolitan Utilities District
of Omaha
Contract 600044
Essar Steel Minnesota LLC
Acknowledgement Agreement
Non-Conforming Service Agreement
First Revised Section No. 28
Essar Steel Minnesota
Acknowledgement Agreement
Vice President, Customer Service &
Business Development
Northern Natural Gas Company
P.O. Box 3330
Omaha, NE 68103-0330
402-398-7417
December 14, 2015
Mr. Steve Rutherford
Essar Steel Minnesota LLC
555 West 27th Street
Hibbing, MN 55746
RE:
Acknowledgement of Section 16 Notice of Termination
Dear Mr. Rutherford:
As of the date of this Acknowledgement of Section 16 Notice of Termination (the
“Acknowledgement”), Essar Steel Minnesota LLC (“Essar”) is in default of Precedent Agreement
601409 / TFX Contract 123116 (the “PA/TSA”) between Essar and Northern Natural Gas
Company (“Northern”) due to non-payment of transportation service invoices (the “Default”).
Northern and Essar hereby acknowledge the following:
1. Essar hereby acknowledges they have notice of their Default and have had sufficient
opportunity to raise questions thereto.
2. Essar hereby acknowledges suspension of the PA/TSA does not provide adequate protection to
Northern.
3. Essar acknowledges that Northern shall remit a Notice of Termination of the PA/TSA to the
Federal Energy Regulatory Commission (“FERC”) pursuant to 18 C.F.R. § 154.602 upon
execution of this Acknowledgement, such that at any time hereafter, if Essar fails to perform
under the PA/TSA, Northern’s FERC Gas Tariff (“Tariff”), or any agreement to provide or
replenish security, Northern is immediately entitled, but not required, to terminate the PA/TSA
without further notice to Essar.
Mr. Steve Rutherford
December 14, 2015
Page 2
4. Essar acknowledges that any agreement to provide or replenish security, and this
Acknowledgement, constitute notices of suspension or termination required by Section 16 of
the General Terms and Conditions of Northern’s Tariff.
5. As to all matters of construction and interpretation, this Acknowledgement shall be interpreted,
construed and governed by the laws of the State of Nebraska. The state and federal courts
situated in the State of Nebraska shall have exclusive jurisdiction to resolve any disputes with
respect to this Acknowledgement, and Essar and Northern hereby irrevocably consent to the
jurisdiction thereof for any actions, suits or proceedings arising out of or relating to this Letter
Agreement.
6. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH, THIS ACKNOWLEDGEMENT. EACH PARTY FURTHER
WAIVES ANY RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL
HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
CANNOT BE OR HAS NOT BEEN WAIVED.
7. Each provision of this Acknowledgement will be considered severable so that if any one
provision or clause conflicts with or may not be given full effect because of applicable law, this
will not affect any other provisions which can be given effect without the conflicting provision
or clause.
[signature page follows]
Mr. Steve Rutherford
December 14, 2015
Page 3
Northern Natural Gas Company
_____________________________________________
Kent Miller
Vice President, Customer Service & Business Development
ACKNOWLEDGED:
Essar Steel Minnesota LLC
_____________________________________________
Officer Printed Name:__________________________
Officer Title:__________________________________
cc:
Mike Barry, Northern
Laura Demman, Northern
Samir Kalra, Essar
Kirk Lavengood, Northern
Joseph Lillo, Northern
J. Gregory Porter, Northern