Northern Natural Gas Company P.O. Box 3330 Omaha, NE 68103-0330 402 398-7200 December 31, 2015 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 RE: Northern Natural Gas Company Docket No. RP16-______ Negotiated Rate Transactions Dear Ms. Bose: Northern Natural Gas Company (Northern) hereby submits for filing as part of its F.E.R.C. Gas Tariff, Sixth Revised Volume No. 1 (Tariff), the following tariff sheets to be effective on January 1, 2016: SIXTH REVISED VOLUME NO. 1 Fifth Revised Sheet No. 66B Twenty Second Revised Sheet No. 66B.01b Sixteenth Revised Sheet No. 66B.01c Sixth Revised Sheet No. 66B.13a Fifteenth Revised Sheet No. 66B.22 Twenty Third Revised Sheet No. 66B.23 Fourth Revised Sheet No. 66B.29 Reason for Filing On June 7, 1996 in Docket No. RP96-272-000, Northern filed tariff sheets to give it the ability to negotiate rates in accordance with the Commission’s Policy Statement on Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas Pipelines, issued January 31, 1996 in Docket No. RM95-6-000 (Policy Statement).1 The Commission accepted the tariff sheets in an order issued July 5, 1996 (1996 Order). The reason for this 1 74 FERC ¶61,076 (1996). Kimberly D. Bose, Secretary December 31, 2015 Page 2 of 4 filing is to add a new negotiated rate transaction and remove expired transactions from the Tariff as explained in more detail below. New Transaction Sheet No. 66B.01c provides the requisite information concerning the new negotiated rate agreement with the City of Sioux Center, including the legal name of the shipper, applicable Rate Schedule, applicable receipt and delivery points, term of service, volume and a statement affirming that the negotiated rate service agreement does not deviate in any material aspect from the form of service agreement in Northern’s FERC Gas Tariff. Sheet No. 66B.29 contains the negotiated rate provisions and other applicable charges for the City of Sioux Center agreement. In addition, the negotiated rate transaction shall be reflected on Northern’s transactional report pursuant to Order Nos. 637, 637A, and 637B. Finally, in accordance with the Commission’s 1996 Order, Northern will keep separate and identifiable its negotiated rate information in such form that it can be filed and separately totaled, in particular, as part of and in the format of Statements G, I, and J in Northern’s future rate cases. Removal of Expired Transactions Northern is also filing to remove expired negotiated rate transactions for: Regency Field Services LLC from Sheet No. 66B and footnote 126 from Sheet No. 66B.13a Iberdrola Energy Services, LLC from Sheet No. 66B.01b and footnote 173 from Sheet No. 66B.22 J. Aron & Company from Sheet No. 66B.01b, and footnotes 174 through 176 from Sheets Nos. 66B.22 and 66B.23 Mieco Inc. from Sheet No. 66B.01c and footnote 186 from Sheet No. 66B.29 Waivers In the Policy Statement, the Commission stated that it would “readily grant requests to waive the 30-day notice requirement” for negotiated rate filings.2 Accordingly, Northern respectfully requests that the Commission grant waiver of section 154.207 and any other waivers of its Regulations that it deems necessary to allow this filing to become effective January 1, 2016. 2 74 FERC ¶ 61,076 at 61,241-2 (1996). See NorAm Gas Transmission Company, 77 FERC ¶ 61,011 at 61,034-5 (1996). Kimberly D. Bose, Secretary December 31, 2015 Page 3 of 4 Posting Northern has served an electronic copy of this filing upon its customers and interested state regulatory commissions. Marked Version In accordance with Section 154.201 of the Commission’s Regulations, Northern has submitted a marked version of the proposed tariff changes highlighting new additions and showing deletions by strikeout. Motion In accordance with Sections 154.7(a)(9) and 154.206(c) of the Commission’s Regulations, Northern hereby moves to place the tariff sheets referenced herein in effect as of the end of any suspension period ordered by the Commission. Data Processing Requirements Northern is submitting this filing through FERC’s electronic tariff filing process in a FERC-approved format. Kimberly D. Bose, Secretary December 31, 2015 Page 4 of 4 Communication It is respectfully requested that all Commission orders and correspondence, as well as pleadings and correspondence from other persons concerning this filing, be served upon each of the following: Laura Demman Vice President, Regulatory and Government Affairs Northern Natural Gas Company 1111 South 103rd Street Omaha, NE 68124-1000 (402) 398-7278 laura.demman@nngco.com Thomas Knight Steve Stojic Jennifer L. Brough Locke Lord LLP 701 8th Street, N.W., Suite 700 Washington, D.C. 20001 (202) 220-6922 tknight@lockelord.com steve.stojic@lockelord.com jbrough@lockelord.com Respectfully submitted, /s/ Laura Demman Laura Demman Vice President, Regulatory and Government Affairs Attachments J. Gregory Porter Vice President, General Counsel & Chief Compliance Officer Dari R. Dornan Senior Counsel Northern Natural Gas Company 1111 South 103rd Street Omaha, NE 68124-1000 (402) 398-7077 greg.porter@nngco.com dari.dornan@nngco.com Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fifth Revised Sheet No. 66B Superseding Fourth Revised Sheet No. 66B STATEMENT OF NEGOTIATED RATES 1/ Shipper Name Rate Schedule Negotiated Rate Other Charges Volume Receipt Point(s) Delivery Point(s)___ Sioux Valley Investments, L.L.C. Contract 113779 TFX 52/ 208 All Market Area Receipt Points All Market Area Delivery Points Northern States Power Company - Wisconsin Contract 114467 TFX 54/ 2,800 All Market Area Receipt Points All Market Area Delivery Points Quad County Corn Processors Cooperative Contract 113782 TFX 55/ 10 All Market Area Receipt Points All Market Area Delivery Points Wisconsin Gas LLC Contract 118499 TFX 91/ 1,300 GRLKS/NNG Carlton Zone EF - Wisconsin Gas for ultimate Redelivery to Grantsburg TBS #1 Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Twenty Second Revised Sheet No. 66B.01b Superseding Twenty First Revised Sheet No. 66B.01b STATEMENT OF NEGOTIATED RATES 1/ Rate Schedule Negotiated Rate Receipt Point(s) Delivery Point(s)______ Valent Biosciences Corporation Contract 127771 TFX 160/ 1,300 All Market Area Receipt Points Zone ABC-Osage for redelivery to Osage IA #1 Osage IA #1 Ogden Def. Delivery Grain Millers, Inc. Contract 127718 TFX 163/ 250 All Market Area Receipt Points St Ansgar IA #1 Zone ABC-Black Hills And Ogden Def. Delivery for redelivery to St Ansgar IA #1 Interstate Power and Light Company Contract 128848 TFX 177/ 2,000 All Market Area Receipt Points All Market Area Delivery Points MidAmerican Energy Company Contract 116047 TFX 178/ 15,154 All Market Area Receipt Points All Market Area Delivery Points Rock Rapids Municipal Utilities Contract 128843 TFX 179/ 200 All Market Area Receipt Points All Market Area Delivery Points Flint Hills Resources Arthur, LLC Contract 128837 TFX 180/ 500 All Market Area Receipt Points All Market Area Delivery Points Pioneer Natural Resources USA, Inc. Contract 129459 TFX 181/ 20,000 CIG/NNG Dumas NNG Demarcation Occidental Energy TFX Marketing, Inc. Contract 129809 183/ 5,200 Occidental Permian Gaines DCP Fullerton Plant MID 1-7 Pooling NNG Demarcation Atmos Spraberry El Paso/NNG Plains 26” (Del) EL Pas/NNG Waha Enterprise Texas Pipeline Spraberry MID 1-7 Pooling Oasis/NNG Waha Occidental Permian/ Hobbs Shipper Name Issued On: December 31, 2015 Other Charges Volume Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Sixteenth Revised Sheet No. 66B.01c Superseding Fifteenth Revised Sheet No. 66B.01c STATEMENT OF NEGOTIATED RATES 1/ Shipper Name Tenaska Marketing Ventures Contract 129861 Rate Schedule Negotiated Rate TFX 184/ Other Charges Volume 50,000 Receipt Point(s) Delivery Point(s) Oasis/NNG Waha NNG Demarcation El Paso/NNG Dumas ANR/NNG Greensburg Atmos Spraberry Cheyenne Plains CIG/NNG Dumas Crestwood Indian Creek Plant El Paso/NNG Plains 30”(Rec) El Paso/NNG Waha Kinder Morgan Keystone Storage Winkler MID 1-7 Pooling MID 8-12 Pooling Oneok Westex Reeves Freepoint Commodities LLC Contract 130023 TFX 185/ 40,000 Oasis/NNG Waha El Paso/NNG Waha ETC Marketing, Ltd. Contract 130043 TFX 187/ 30,000 Regency C Line NNG Demarcation MID 8-12 Pooling Regency Antelope Hills Regency Cargray Plant Regency Hemphill Plant Regency Spearman Residue Regency Sunray Plant City of Sioux Center Contract 128839 TFX 188/ Issued On: December 31, 2015 400 All Market Area Receipt Points NNG Demarcation All Market Area Delivery Points Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Sixth Revised Sheet No. 66B.13a Superseding Fifth Revised Sheet No. 66B.13a Sheet No. 66B.13a is Reserved for Future Use. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fifteenth Revised Sheet No. 66B.22 Superseding Fourteenth Revised Sheet No. 66B.22 163/ For the period 11/01/2014 through 10/31/2024, if Shipper uses (not as a result of an oversight or scheduling error) any delivery point other than the (i) St. Ansgar IA #1 (POI 3818) town border station on a primary basis; (ii) Zone ABC-Black Hills (POI 60228) for ultimate redelivery to the St. Ansgar IA #1 on a primary basis; or (iii) Ogden Def. Delivery Point for ultimate redelivery to the St. Ansgar IA #1 on an alternate basis, Shipper shall pay a reservation fee equal to two times Northern's maximum reservation rate for the entire contract MDQ for the month that any other points are used. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Twenty Third Revised Sheet No. 66B.23 Superseding Twenty Second Revised Sheet No. 66B.23 177/ For the period 11/01/2015 through 12/31/2026, for the term of the West Leg Expansion Entitlement, Shipper shall pay a monthly reservation charge equal to $0.6122/Dth/day multiplied by the contract MDQ multiplied by 30.4 (Negotiated Reservation Rate). However, in the event the Actual Cost of the Hazel interconnect is less than the estimate utilized to derive this Negotiated Reservation Rate, the Negotiated Reservation Rate will be adjusted down to the extent the Actual Cost of the Hazel interconnect is lower than the estimate. In addition to the Negotiated Reservation Rate, Shipper shall (i) pay a commodity rate equal to the maximum commodity rates provided in Northern's FERC Gas Tariff; (ii) provide any applicable fuel use and unaccounted for; and (iii) pay all FERC-approved charges and surcharges applicable to the service provided. All quantities set forth below are hereinafter defined as the "West Leg Expansion Entitlement": 1,108 Dth/day of annual service from receipts at the NBPL/NNG Ventura interconnect (POI #192) for deliveries to town border stations (TBS) behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 277 Dth/day) beginning 11/01/2015 and extending through 10/31/2016. 892 Dth/day of annual service from receipts at the new NBPL/NNG Hazel interconnect (POI #79244) for deliveries to town border stations behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 223 Dth/day) beginning 01/01/2016 and ending 12/31/2026. 1,108 Dth/day of annual service from receipts at the new NBPL/NNG Hazel interconnect (POI #79244) for deliveries to town border stations behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 277 Dth/day) as set forth on Appendix B attached hereto beginning 11/01/2016 and ending 10/31/2026. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fourth Revised Sheet No. 66B.29 Superseding Third Revised Sheet No. 66B.29 187/ For the period 12/05/2015 through 3/31/2016, the total daily rate for the Contract MDQ shall be the arithmetic value obtained from the formula [("X" minus ("Y" divided by "A")) times "B" times "C"] (rate) where "X" = the Midpoint price from "Gas Daily" Northern, demarc; "Y" = the average of the Midpoint prices from "Gas Daily" (i) Panhandle, Tx-Okla. and (ii) Southern Star; plus $0.03; "A" = 0.9808; "B" = 0.85; and "C" = the actual % of MDQ scheduled on this contract except in the event that [("X" minus ("Y" divided by "A")) times "B"] is equal to or greater than $0.38 where "C" will be equal to 100%. However, in no event will [("X" minus ("Y" divided by "A")) times "B"] be less than $0.15 in the months of December and March and $0.25 in the months of January and February. The monthly rate will be the sum of all daily rates from the formula above. Shipper's charges above shall be reduced, in Northern's sole discretion, for any quantity that is unable to be delivered up to the MDQ. In addition to the above rates, Shipper shall provide any applicable fuel use and unaccounted for. The rates set forth above are applicable to the receipt and delivery points (POI) listed. Shipper agrees that if any receipt or delivery points not listed are used either on a primary or alternate basis; the rates set forth above will not be applicable and Shipper shall pay the higher of Northern's maximum tariff rates or the rates generated using the formula set forth above where formula component "C" is removed and formula component "Y" is equal to the lower of the "Gas Daily" Midpoint prices at: (i) Waha; (ii) El Paso, Permian; (iii) ANR, Okla; (iv) NGPL, Midcontinent; or (v) Panhandle, Tx.-Okla. for each day for the entire contract MDQ for the month that any points not listed below are used. In the event of a realignment of any of the entitlement under this Agreement, Shipper shall pay the higher of Northern's maximum rates or the rates generated using the formula set forth above where formula component (Y) is equal to the lower of the "Gas Daily" Midpoint prices at: (i) Waha; (ii) El Paso, Permian; (iii) ANR, Okla.; (iv) NGPL, Midcontinent; or (v) Panhandle, Tx.-Okla. for the realigned entitlement for the remaining term of the Agreement. In addition to the above rates, Shipper shall pay all FERC-approved surcharges applicable to the service provided hereunder. 188/ For the period 1/01/2016 through 12/31/2025, Shipper shall pay a monthly reservation charge equal to $1.1070/Dth/day multiplied by the contract MDQ multiplied by 30.4 (Negotiated Reservation Rate). However, in the event the Actual Cost of the Hazel interconnect is less than the estimate utilized to derive this Negotiated Reservation Rate, the Negotiated Reservation Rate will be adjusted down to the extent the Actual Cost of the Hazel interconnect is lower than the estimate. In addition to the Negotiated Reservation Rate, Shipper shall (i) pay a commodity rate equal to the maximum commodity rates provided in Northern's FERC Gas Tariff; (ii) provide any applicable fuel use and unaccounted for; and (iii) pay all FERC-approved charges and surcharges applicable to the service provided herein. If the Negotiated Reservation Rate is or becomes less than the maximum winter rate set forth in Northern's FERC Gas Tariff, multiplied by the MDQ multiplied by 30.4 (the product being the "Maximum Rate"), such Negotiated Reservation Rate would be applicable only to the receipt point NBPL/NNG Hazel (POI #79244) and delivery points Zone ABC-Sioux Center (POI #3110)and Sioux Center IA #1 (POI #4065), as applicable, on a primary basis, and all Market Area receipt points on an alternate basis. If any other points are used either on a primary or alternate basis, Shipper shall pay the higher of the Negotiated Reservation Rate or the Maximum Rate for the entire contract MDQ during the month that any points not listed are used. In the event of a realignment of any of the entitlement, Shipper shall pay the higher of the Negotiated Reservation Rate or the Maximum Rate for the realigned entitlement through the remaining term of the Agreement, in addition to any other charges that may be applicable. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fifth Revised Sheet No. 66B Superseding Fourth Revised Sheet No. 66B STATEMENT OF NEGOTIATED RATES 1/ Shipper Name Rate Schedule Negotiated Rate Other Charges Volume Receipt Point(s) Delivery Point(s)___ Sioux Valley Investments, L.L.C. Contract 113779 TFX 52/ 208 All Market Area Receipt Points All Market Area Delivery Points Northern States Power Company - Wisconsin Contract 114467 TFX 54/ 2,800 All Market Area Receipt Points All Market Area Delivery Points Quad County Corn Processors Cooperative Contract 113782 TFX 55/ 10 All Market Area Receipt Points All Market Area Delivery Points Wisconsin Gas LLC Contract 118499 TFX 91/ 1,300 GRLKS/NNG Carlton Zone EF - Wisconsin Gas for ultimate Redelivery to Grantsburg TBS #1 Regency Field Services LLC Contract 123516 TFX 126/ All Field Area Receipt Points All Field Area Delivery Points Issued On: December 31, 2015 90,000 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Twenty Second Revised Sheet No. 66B.01b Superseding Twenty First Revised Sheet No. 66B.01b STATEMENT OF NEGOTIATED RATES 1/ Rate Schedule Negotiated Rate Receipt Point(s) Delivery Point(s)______ Valent Biosciences Corporation Contract 127771 TFX 160/ 1,300 All Market Area Receipt Points Zone ABC-Osage for redelivery to Osage IA #1 Osage IA #1 Ogden Def. Delivery Grain Millers, Inc. Contract 127718 TFX 163/ 250 All Market Area Receipt Points St Ansgar IA #1 Zone ABC-Black Hills And Ogden Def. Delivery for redelivery to St Ansgar IA #1 Iberdrola Energy Services, LLC Contract 113739/803384 PDD 173/ 1,000,000 Demarc Deferred Demarc Deferred J. Aron & Company Contract 113052/803446 PDD 174/ 1,000,000 Demarc Deferred Demarc Deferred J. Aron & Company Contract 113052/803460 PDD 175/ 2,000,000 Demarc Deferred Demarc Deferred J. Aron & Company Contract 113052/803477 PDD 176/ 1,500,000 Demarc Deferred Demarc Deferred Interstate Power and Light Company Contract 128848 TFX 177/ 2,000 All Market Area Receipt Points All Market Area Delivery Points MidAmerican Energy Company Contract 116047 TFX 178/ 15,154 All Market Area Receipt Points All Market Area Delivery Points Rock Rapids Municipal Utilities Contract 128843 TFX 179/ 200 All Market Area Receipt Points All Market Area Delivery Points Flint Hills Resources Arthur, LLC Contract 128837 TFX 180/ 500 All Market Area Receipt Points All Market Area Delivery Points Pioneer Natural Resources USA, Inc. Contract 129459 TFX 181/ 20,000 CIG/NNG Dumas NNG Demarcation Occidental Energy TFX Marketing, Inc. Contract 129809 183/ 5,200 Occidental Permian Gaines DCP Fullerton Plant MID 1-7 Pooling NNG Demarcation Atmos Spraberry El Paso/NNG Plains 26” (Del) EL Pas/NNG Waha Enterprise Texas Pipeline Spraberry MID 1-7 Pooling Oasis/NNG Waha Occidental Permian/ Hobbs Shipper Name Issued On: December 31, 2015 Other Charges Volume Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Sixteenth Revised Sheet No. 66B.01c Superseding Fifteenth Revised Sheet No. 66B.01c STATEMENT OF NEGOTIATED RATES 1/ Shipper Name Tenaska Marketing Ventures Contract 129861 Rate Schedule Negotiated Rate TFX 184/ Other Charges Volume 50,000 Receipt Point(s) Delivery Point(s) Oasis/NNG Waha NNG Demarcation El Paso/NNG Dumas ANR/NNG Greensburg Atmos Spraberry Cheyenne Plains CIG/NNG Dumas Crestwood Indian Creek Plant El Paso/NNG Plains 30”(Rec) El Paso/NNG Waha Kinder Morgan Keystone Storage Winkler MID 1-7 Pooling MID 8-12 Pooling Oneok Westex Reeves Freepoint Commodities LLC Contract 130023 TFX 185/ 40,000 Oasis/NNG Waha El Paso/NNG Waha NNG Demarcation Mieco Inc. Contract 130024 TFX 186/ 50,000 Rex/NNG Gage County NNG Demarcation Demarc Def. Delivery ETC Marketing, Ltd. Contract 130043 TFX 187/ 30,000 Regency C Line NNG Demarcation MID 8-12 Pooling Regency Antelope Hills Regency Cargray Plant Regency Hemphill Plant Regency Spearman Residue Regency Sunray Plant City of Sioux Center Contract 128839 TFX 188/ Issued On: December 31, 2015 400 All Market Area Receipt Points All Market Area Delivery Points Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Sixth Revised Sheet No. 66B.13a Superseding Fifth Revised Sheet No. 66B.13a 126/ For the period 11/01/2014 through 12/31/2015, the rate provisions are amended as follows: Shipper shall pay a total monthly reservation charge equal to $0.3164/Dth/day multiplied by the contract MDQ multiplied by 30.4. In addition to the reservation charge, Shipper shall (i) pay a commodity rate equal to the maximum commodity rates provided in Northern's FERC Gas Tariff; (ii) provide any applicable fuel use and unaccounted for; and (iii) pay all FERC-approved surcharges applicable to the service provided hereunder. Sheet No. 66B.13a is Reserved for Future Use. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fifteenth Revised Sheet No. 66B.22 Superseding Fourteenth Revised Sheet No. 66B.22 163/ For the period 11/01/2014 through 10/31/2024, if Shipper uses (not as a result of an oversight or scheduling error) any delivery point other than the (i) St. Ansgar IA #1 (POI 3818) town border station on a primary basis; (ii) Zone ABC-Black Hills (POI 60228) for ultimate redelivery to the St. Ansgar IA #1 on a primary basis; or (iii) Ogden Def. Delivery Point for ultimate redelivery to the St. Ansgar IA #1 on an alternate basis, Shipper shall pay a reservation fee equal to two times Northern's maximum reservation rate for the entire contract MDQ for the month that any other points are used. 173/ For the period 10/01/2015 through 12/31/2015, the Total Transaction Rate charged shall be as follows: (a) The Total Transaction Rate for the months of October 2015 through November 2015 shall be $0.0000. (b) The Total Transaction Rate for December 2015 shall use the formula: (i) December 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (ii) October 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (iii) $0.035 ("Formula Rate"). The Transaction charges for December 2015 shall be the Formula Rate multiplied by the Contract Total Quantity. Northern reserves the right to allocate the charges above between the different rate components. 174/ For the period 07/01/2015 through 12/31/2015, the Total Transaction Rate charged shall be as follows: (a) The Total Transaction Rate for the months of July 2015 through November 2015 shall be $0.0000. (b) The Total Transaction Rate for December 2015 shall use the formula: (i) December 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (ii) July 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (iii) $0.0475 ("Formula Rate"). The Transaction charges for December 2015 shall be the Formula Rate multiplied by the Contract Total Quantity. Northern reserves the right to allocate the charges above between the different rate components. 175/ For the period 08/01/2015 through 12/31/2015, the Total Transaction Rate charged shall be as follows: (a) The Total Transaction Rate for the months of August 2015 through November 2015 shall be $0.0000. (b) The Total Transaction Rate for December 2015 shall use the formula: (i) December 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (ii) August 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (iii) $0.0425 ("Formula Rate"). The Transaction charges for December 2015 shall be the Formula Rate multiplied by the Contract Total Quantity. Northern reserves the right to allocate the charges above between the different rate components. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Twenty Third Revised Sheet No. 66B.23 Superseding Twenty Second Revised Sheet No. 66B.23 176/ For the period 09/01/2015 through 12/31/2015, the Total Transaction Rate charged shall be as follows: (a) The Total Transaction Rate for the months of September 2015 through November 2015 shall be $0.0000. (b) The Total Transaction Rate for December 2015 shall use the formula: (i) December 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (ii) September 2015 "Inside FERC Gas Market Report" Spot Gas Delivered to Pipelines, Northern Natural Gas Company, Demarcation minus (iii) $0.04 ("Formula Rate"). The Transaction charges for December 2015 shall be the Formula Rate multiplied by the Contract Total Quantity. Northern reserves the right to allocate the charges above between the different rate components. 177/ For the period 11/01/2015 through 12/31/2026, for the term of the West Leg Expansion Entitlement, Shipper shall pay a monthly reservation charge equal to $0.6122/Dth/day multiplied by the contract MDQ multiplied by 30.4 (Negotiated Reservation Rate). However, in the event the Actual Cost of the Hazel interconnect is less than the estimate utilized to derive this Negotiated Reservation Rate, the Negotiated Reservation Rate will be adjusted down to the extent the Actual Cost of the Hazel interconnect is lower than the estimate. In addition to the Negotiated Reservation Rate, Shipper shall (i) pay a commodity rate equal to the maximum commodity rates provided in Northern's FERC Gas Tariff; (ii) provide any applicable fuel use and unaccounted for; and (iii) pay all FERC-approved charges and surcharges applicable to the service provided. All quantities set forth below are hereinafter defined as the "West Leg Expansion Entitlement": 1,108 Dth/day of annual service from receipts at the NBPL/NNG Ventura interconnect (POI #192) for deliveries to town border stations (TBS) behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 277 Dth/day) beginning 11/01/2015 and extending through 10/31/2016. 892 Dth/day of annual service from receipts at the new NBPL/NNG Hazel interconnect (POI #79244) for deliveries to town border stations behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 223 Dth/day) beginning 01/01/2016 and ending 12/31/2026. 1,108 Dth/day of annual service from receipts at the new NBPL/NNG Hazel interconnect (POI #79244) for deliveries to town border stations behind Zone ABC Interstate Power and Light (POI #60226) (Storm Lake IA #1 (POI 2869), Sibley IA #1 (POI 3606), Rembrandt IA #1 (POI 3714), and Albert City IA #1 (POI 3652) each for 277 Dth/day) as set forth on Appendix B attached hereto beginning 11/01/2016 and ending 10/31/2026. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fourth Revised Sheet No. 66B.29 Superseding Third Revised Sheet No. 66B.29 186/ For the period 12/01/2015 through 12/31/2015, the total daily rate for the Contract MDQ shall be the arithmetic value obtained from the formula [("X" minus "Y") times "A" times "B"] (rate) where "X" = the Midpoint price from "Gas Daily" Northern, demarc; "Y" = the lower of the Midpoint price from "Gas Daily" Lebanon Hub or (Cheyenne Hub plus $0.08); "A" = 0.70; "B" = the actual % of MDQ scheduled on this contract from the REX/NNG Gage County (POI 78929) receipt point. However, in no event will [("X" minus "Y") times "A"] be less than $0.02. The monthly rate will be the sum of all daily rates. In addition to the above rates, Shipper shall provide any applicable fuel use and unaccounted for. Shipper agrees that it will use this Agreement for all of its quantities delivered into Northern's system at the REX/NNG Gage County Receipt Point (POI #78929) up to the contract MDQ. If another Agreement is used to deliver quantities to Northern at the REX/NNG Gage County Receipt Point (POI #78929), except for primary firm scheduled receipts on another Agreement or in the event of any nomination error by Shipper or any unintended consequence to Shipper resulting from the scheduling processes of Northern or a third party that results in Shipper's gas being scheduled from the REX/NNG Gage County Receipt Point (POI #78929) on an agreement other than this Agreement before the full MDQ of this Agreement is utilized (Exception), the volumetric portion of the negotiated rate agreed to will not be applicable and the higher of Northern's maximum reservation and commodity rates or the formula rate calculation will apply to the entire contract MDQ for each day for the entire month that another agreement is used. Northern may eliminate the Exception after one use, in its sole discretion, by providing notice to Shipper prior to the next Timely Nomination deadline. The rates set forth above are applicable to the receipt and delivery points (POI) listed. Shipper agrees that if any receipt or delivery points not listed are used either on a primary or alternate basis, the rates set forth above will not be applicable and Shipper shall pay the higher of the rates set forth above where formula component "B" will be equal to 100% or Northern's maximum rates each day for the entire contract MDQ for the month that any points not listed below are used. In addition to the above rates, Shipper shall pay all FERC-approved surcharges applicable to the service provided hereunder. 187/ For the period 12/05/2015 through 3/31/2016, the total daily rate for the Contract MDQ shall be the arithmetic value obtained from the formula [("X" minus ("Y" divided by "A")) times "B" times "C"] (rate) where "X" = the Midpoint price from "Gas Daily" Northern, demarc; "Y" = the average of the Midpoint prices from "Gas Daily" (i) Panhandle, Tx-Okla. and (ii) Southern Star; plus $0.03; "A" = 0.9808; "B" = 0.85; and "C" = the actual % of MDQ scheduled on this contract except in the event that [("X" minus ("Y" divided by "A")) times "B"] is equal to or greater than $0.38 where "C" will be equal to 100%. However, in no event will [("X" minus ("Y" divided by "A")) times "B"] be less than $0.15 in the months of December and March and $0.25 in the months of January and February. The monthly rate will be the sum of all daily rates from the formula above. Shipper's charges above shall be reduced, in Northern's sole discretion, for any quantity that is unable to be delivered up to the MDQ. In addition to the above rates, Shipper shall provide any applicable fuel use and unaccounted for. The rates set forth above are applicable to the receipt and delivery points (POI) listed. Shipper agrees that if any receipt or delivery points not listed are used either on a primary or alternate basis; the rates set forth above will not be applicable and Shipper shall pay the higher of Northern's maximum tariff rates or the rates generated using the formula set forth above where formula component "C" is removed and formula component "Y" is equal to the lower of the "Gas Daily" Midpoint prices at: (i) Waha; (ii) El Paso, Permian; (iii) ANR, Okla; (iv) NGPL, Midcontinent; or (v) Panhandle, Tx.-Okla. for each day for the entire contract MDQ for the month that any points not listed below are used. In the event of a realignment of any of the entitlement under this Agreement, Shipper shall pay the higher of Northern's maximum rates or the rates generated using the formula set forth above where formula component (Y) is equal to the lower of the "Gas Daily" Midpoint prices at: (i) Waha; (ii) El Paso, Permian; (iii) ANR, Okla.; (iv) NGPL, Midcontinent; or (v) Panhandle, Tx.-Okla. for the realigned entitlement for the remaining term of the Agreement. In addition to the above rates, Shipper shall pay all FERC-approved surcharges applicable to the service provided hereunder. Issued On: December 31, 2015 Effective On: January 1, 2016 Northern Natural Gas Company FERC Gas Tariff Sixth Revised Volume No. 1 Fourth Revised Sheet No. 66B.29 Superseding Third Revised Sheet No. 66B.29 188/ For the period 1/01/2016 through 12/31/2025, Shipper shall pay a monthly reservation charge equal to $1.1070/Dth/day multiplied by the contract MDQ multiplied by 30.4 (Negotiated Reservation Rate). However, in the event the Actual Cost of the Hazel interconnect is less than the estimate utilized to derive this Negotiated Reservation Rate, the Negotiated Reservation Rate will be adjusted down to the extent the Actual Cost of the Hazel interconnect is lower than the estimate. In addition to the Negotiated Reservation Rate, Shipper shall (i) pay a commodity rate equal to the maximum commodity rates provided in Northern's FERC Gas Tariff; (ii) provide any applicable fuel use and unaccounted for; and (iii) pay all FERC-approved charges and surcharges applicable to the service provided herein. If the Negotiated Reservation Rate is or becomes less than the maximum winter rate set forth in Northern's FERC Gas Tariff, multiplied by the MDQ multiplied by 30.4 (the product being the "Maximum Rate"), such Negotiated Reservation Rate would be applicable only to the receipt point NBPL/NNG Hazel (POI #79244) and delivery points Zone ABC-Sioux Center (POI #3110)and Sioux Center IA #1 (POI #4065), as applicable, on a primary basis, and all Market Area receipt points on an alternate basis. If any other points are used either on a primary or alternate basis, Shipper shall pay the higher of the Negotiated Reservation Rate or the Maximum Rate for the entire contract MDQ during the month that any points not listed are used. In the event of a realignment of any of the entitlement, Shipper shall pay the higher of the Negotiated Reservation Rate or the Maximum Rate for the realigned entitlement through the remaining term of the Agreement, in addition to any other charges that may be applicable. Issued On: December 31, 2015 Effective On: January 1, 2016