Natural Gas Pipeline Notice 45711

OPERATIONAL FLOW ORDER ISSUED - MARKET DELIVERY ZONE

 

Based on expected colder than normal weather in the Market Delivery Zone and expected increased load on its system, anticipated maximum peaking withdrawals from storage facilities, and current system operating conditions, Natural is issuing an Operational Flow Order (OFO) in the Market Delivery Zone effective 9:00 am., Central Clock Time, Sunday, January 19, 2025, and continuing until further notice.  Additionally, Natural continues to monitor operating conditions system wide.  If necessary, Natural will issue additional OFOs to address Shipper actions that are detrimental to such operating conditions outside the Market Delivery Zone.  See below for specific actions Natural is requiring shippers to follow and the applicable timing requirements (daily and hourly) for compliance with the OFO.  Additionally, if conditions warrant, a Critical Time will be issued in the near future.  Please monitor Natural's Interactive Website for updates.

 

DAILY

 

For the gas day, each Shipper (including Point Operators) is prohibited from taking any volume in excess of those equal to confirmed transportation nominations plus no-notice rights at delivery points in the Market Delivery Zone.  Excess daily takes will be subject to applicable Unauthorized Overrun charges, OFO charges and/or OFO balancing charges (as described below).  Natural is reminding Shippers and Point Operators that as part of this OFO, tolerances under POA agreements are limited to 2% (instead of 5%) of confirmed nominations or 1,000 Dth/d; whichever is greater, at the point.  Daily Balancing Charges and overrun charges associated with Shippers and Point Operators undertaking volumes (long position) will be waived during this OFO in accordance with Natural's FERC Gas Tariff.

 

HOURLY

 

Additionally, as provided in Section 7.4 of Natural's FERC Gas Tariff, at each point in the Market Delivery Zone, Point Operators and Shippers (where no point operator exists) are required to limit hourly takes.  The hourly rights for each Shipper and Point Operator will be limited by service priority and nomination cycle, based on hours remaining in the gas day.  Shippers and Point Operators are responsible for calculating and monitoring their hourly usage so as not to exceed the limits described herein.  Excess hourly takes will be subject to OFO charges (as described below).

 

 

Hourly Rights for Firm Service – 130%

Includes Primary and Secondary Confirmed Nominations and Unused No-Notice firm service rights

 

            Timely/Evening Cycles

Limited to 5.42% (130% / 24 hours) of Firm Service. 

 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 6.84% (130% / 19 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 8.67% (130% / 15 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 11.82% (130% / 11 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.

 

Hourly Rights for Interruptible Service – 105%

Includes Interruptible and AOR nominations, as well as POA tolerances

 

Timely/Evening Cycles

Limited to 4.375% (105% / 24 hours) of Interruptible Service. 

 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 5.53% (105% / 19 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 7.00% (105% / 15 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 9.55% (105% / 11 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

 

 

 

Limitation on Nominations in All Cycles for Firm and Interruptible Service

 

Shippers are advised that nominations should be received by Timely/Evening Cycle in order to utilize full rights over 24 hours, to avoid exceeding the 24 hour ratable hourly takes calculation.  In all cases, any first time nominations received on Non-Timely Cycles for full MDQ utilization rights, plus any scheduled ITS nominations, are subject to penalty on any hourly takes overages if the hourly takes rate exceeds the 24 hour ratable calculation.  Shipper's hourly rights based on firm MDQ, plus interruptible nominations, must be sufficient to accommodate the calculated hourly rights for the remaining hours of the gas day.  Specifically, hourly rights cannot exceed 130% / 24 hours of Shipper's MDQ on the nominated contract, plus 105% / 24 hours of Shipper's interruptible nominations.

 

 

In addition, Natural would like to remind point operators to utilize the Operator Point Reports available on our website to assist you in monitoring your hourly takes.  These reports are available by linking to http://pipeline.kindermorgan.com.  Select NGPL à Customer Activities à Log On à Flowing Gas à Additional Reports à NGPL//HRZ à NGPL/HRZ – Hourly Nomination Details.

 

 

CHARGES FOR VIOLATIONS OF OFOs

 

HOURLY

Section 23.6 of the General Terms and Conditions of Natural's FERC Gas Tariff sets forth the provisions, including applicable penalties, for failure to comply with an OFO.

 

DAILY

 

UNAUTHORIZED OVERRUN

Point Operators are on notice that any volumes taken in excess of the confirmed nominations and no-notice rights plus the greater of 2% of all confirmed nominations, or one thousand (1,000) Dth/day, will be treated as Unauthorized Overrun subject to any applicable charges (Section 12), penalties for violating the OFO (Section 23.6), and any Balancing Service Charges (as referenced below).  This OFO overrides any prior predetermined allocation included in Section 11 of the General Terms and Conditions of Natural's FERC Gas Tariff to the extent the overtake would be treated differently.

 

BALANCING SERVICE CHARGES

Section 12.3 of the General Terms and Conditions of Natural's FERC Gas Tariff sets forth the provisions when Balancing Service Charges shall apply when an OFO is in effect, if actual deliveries allocated to a Shipper at any point or under any Agreement do not conform to the sum of such Shipper's confirmed nominations and no-notice rights applicable to such point.

 

Daily Balancing Charges and overrun charges associated with Shippers and Point Operators under taking volumes (long position) will be waived during this OFO in accordance with Natural's FERC Gas Tariff.

           

Please contact your Account Director for any questions.