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FYI. Wasn't sure if you saw this? Thanks. Lynn
-----Original Message----- From: Johnson, Robert=20 Sent: Tuesday, October 30, 2001 3:32 PM To: Muzzy, Charles T.; adrienneanderson@aec.ca; billhogue@aec.ca; keith.cla= uson@alcoa.com; kellyschneider@alliant-energy.com; jeffhicken@alliant-energ= y.com; nancycaldwell@alliant-energy.com; cachapman@hess.com; jpaganis@hess.= com; delenh@chel.com; mdufort@utilicorp.com; Gprazan@tmvgas.com; gasmkt@br-= inc.ca; jennifer_fahler@cargill.com; dan_collins@transcanadausa.com; mshule= r@tmvgas.com; nsimpson@coral-energy.com; lisa_coultry@nexeninc.com; trevor_= nicol@nexeninc.com; kwetzel@bepc.com; sramaya@duke-energy.com; pddunn@duke-= energy.com; sedavis@duke-energy.com; klba@dynegy.com; Heal, Kevin; Hedstrom= , Peggy; Smith, Rhonda; Smith, George F.; julie.r.arbuckle@nspco.com; brend= a.gaudet@cmenergy.com; greg.cook@cmenergy.com; greg.edwards@foothillspipe.c= om; dilshad.chagani@foothillspipe.com; harvey.hillaby@foothillspipe.com; ki= rk.lundell@huskyenergy.ca; richard.j.sekida@huskyenergy.com; gascontrol@mid= american.com; jwhegg@midamerican.com; necks@epenergy.com; john_s_kamprud@re= liantenergy.com; martinr@mdu.mdures.com; connellk@mdu.mdures.com; klempeld@= mdu.mdures.com; dmullown@mtpower.com; dnichols@mtpower.com; Sherrie_Palmer@= pcp.ca; kelly_yu@kne.com; eddy_thomas@kne.com; liz_burdick@kne.com; Darla_H= ogan@Kindermorgan.com; mary_shockley@kne.com; Point_Management@KinderMorgan= .Com; jrubsam@nicorinc.com; Carr, James; Blair, Jean; Bryan, Randy; Blair, = Lynn; jnilan@tmvgas.com; rdelara@pecorp.com; becky_fischer@oxy.com; jerry_l= anier@oxy.com; roger_tisdale@oxy.com; david_garza@oxy.com; shawnette_sonnie= r@oxy.com; tony.gee@mirant.com; mary.hanford@mirant.com; jcrumley@pcenergy.= com; winifred_chew-semple@pcp.ca; srichman@pecorp.com; jslechta@pecorp.com;= i.isais@pecorp.com; bhayes@pecorp.com; Fuentes, Daryll; dallan@petro-canad= a.ca; terrence.rose@et.pge.com; luedgl@prairielands.com; bsticka@reliantene= rgy.com; terry_w_wilson@reliantenergy.com; jmailey@renaissance.ca; ljbc124@= aol.com; disenber@sel.com; GNadeau@Suncor.com; jcorritore@tmvgas.com; fhunz= eker@tmvgas.com; bhouston@usenergyservices.com; banderson@usenergyservices.= com; albepj@wbip.com; debejd@wbip.com; nominate@wbip.com; jangsf@wbip.com; = Begley, Mark; Coburn, Scott; Homan, Rita; Johnson, Robert; Miller, Paul; Ne= ppl, Ray; Shade, Marge; Strom, Colin; Wakefield, Karen; Willimon, Ted; Fond= a, Bill; Weakly, Judith; judy.sheppard@engageenergy.com; sonnlels@bp.com; j= carr@usenergyservices.com; lbruck@tmvgas.com; anne_m_wilson@reliantenergy.c= om; jeyoung@utilicorp.com; zcourns@national-fuel.com; geigbd@wbip.com; hear= dsp@nucleus.com; mmillard@utilicorp.com; dmckenzi@utilicorp.com; stnelson@u= tilicorp.com; bmeloy@nicorinc.com; mmartindale@tmvgas.com; Nacey, Sheila; k= enja@cnrl.com; teresa.mcombe@enron.com; jwwoodard@duke-energy.com; michaelb= ennett@aec.ca; Piazze, Tara; dculshaw@utilicorp.com; khfinch@midamerican.co= m; vlwonder@midamerican.com; su.klimack@cnpl.enbridge.com; tom.mah@cnpl.enb= ridge.com; kent.wirth@cnpl.enbridge.com; shona.thirsk@cnpl.enbridge.com; jo= yce.macintyre@cnpl.enbridge.com; hayhurstb@paceglobal.com; loren_g_schulz@r= eliantenergy.com; lindsay.foster@southernenergy.com; wendie_plautz@transcan= adausa.com; mikemo@kfoc.net; remplelm@bp.com; ricelj2@bp.com; alexanders1@e= penergy.com; doreen.wright@engageenergy.com; robostandr@bp.com; kpowell@pce= nergy.com; jeannie.kezama@engageenergy.com; pboone@pcenergy.com; kim_carste= n@oxy.com; bkimball@pcenergy.com; carol_jennings@transcanadausa.com; trevor= _cooper@transcanadausa.com; gbricker@sempratrading.com; shawn.parsell@xemkt= .com; hilda.yount@xemkt.com; jeff.spector@xemkt.com; jmeehan@alleghenyenerg= y.com; brookr@wbip.com; jjicha@nicorinc.com; jennifermoyer@alliant-energy.c= om; jgalling@utilicorp.com; jwillia2@enron.com; jennifer.swap@wbip.com; tre= vor.mitchell@mirant.com; dana.ryan@elpaso.com; linda.gorman@elpaso.com; pau= la.stevens@elpaso.com; mary.bartlett-armstrong@cinergy.com; alan.mclaurin@c= inergy.com; paulette.jaworski@cinergy.com; tinag@cinergy.com; barbara.chean= ey@elpaso.com; ccarley@reliantenergy.com; colin.verges@engageenergy.com; ka= rr-ake@er.oge.com; lewje@pecorp.com; tammy.cabrera@elpaso.com; pwynn@bepc.c= om; rdavis@bepc.com; wdedekam@bepc.com; leo_l_williams@reliantenergy.com; s= haron.alexander@elpaso.com; reshma_rawji@keyspancanada.com; linda.richards@= eprime.com; schang@hess.com; seanmacpherson@aec.ca; bcfr@dynegy.com; srasur= e@enserco.com; shahnaz.iakho@enron.com; tacton@reliant.com; cindyfeldman@ae= c.ca; jooliverio@aec.ca; markwilson@aec.ca; Neville, Sue; wayne.templeton@e= lpaso.com; pikfletcher@duke-energy.com; betsy_trimble@oxy.com; vargo@bethst= eel.com; kapeterson@cmsenergy.com; jrohrig@utilicorp.com; Nielsen, Jeff; rb= ryan@reliant.com; kadiano1@txu.com; jcolburn@utilicorp.com; erodenbu@utilic= orp.com; wamiller@midamerican.com; dwillia2@midamerican.com; Begley, Mark; = Johnson, Robert; Strom, Colin; Willimon, Ted Subject: Borderline #22 - November 1 OFO Changes Borderline No. 2001-22 October 30, 2001<?xml:namespace prefix =3D o ns =3D "urn:schemas-microsoft-= com:office:office" /< =20 November 1 Tariff Change Tariff revisions detailing and addressing the use of an Operational Flow Or= der (OFO) on Northern Border, which were part of Northern Border's approved= Park and Loan (PAL) filing, will become effective on November 1. Here is= a brief overview of the upcoming changes. =20 Purpose of an OFO =20 An OFO will be used by Northern Border to 1) alleviate conditions that thre= aten the integrity of the system, 2) maintain pipeline operations at pressu= res required to provide efficient and reliable transportation service, 3) a= ssure adequate system line pack, and 4) maintain service for all of Norther= n Border's firm shippers. =20 =20 An OFO will be treated as a tool of last resort. Northern Border will firs= t attempt to utilize its system, its services (transportation and PAL), and= if necessary, assistance of interconnecting systems to alleviate operation= al problems before invoking its OFO tariff provisions. =20 =20 Posting of an OFO Watch =20 If resolution of an operational problem is unlikely, such as when a daily o= r cumulative OBA imbalance with an interconnected party is outside of a def= ined tolerance range, Northern Border will post an OFO watch. Similar to a= severe weather notice, the purpose of an OFO watch is to pre-alert shipper= s and interconnecting systems to a location or area on Northern Border's sy= stem in which underlying operational conditions could prompt the issuance o= f an OFO. =20 OFO Issuance =20 Northern Border will issue an OFO if it is determined that an OFO watch has= failed to serve as a catalyst for corrective action.=20 =20 A Northern Border OFO will be as localized as is reasonably possible. Furt= hermore, each OFO will be tailored to match the severity of the known or an= ticipated problem being addressed. =20 =20 OFO Impact =20 An OFO can result in either the curtailment of interruptible services and/o= r the forced balancing of nominations and actual flows through the confirma= tion process. =20 =20 If service is reduced or interrupted due to an OFO, Northern Border will di= rectly provide affected shippers, as soon as possible, a summary of the ser= vice interruption that will include the operational variables that prompted= such action. In addition, affected shippers will be notified of any imbal= ances that require immediate resolution. =20 Routine status updates will be posted throughout the period in which the OF= O is in effect. =20 =20 Failure to Comply =20 When an OFO is issued, it is the responsibility of the affected shippers to= make a good faith effort to comply. If such shippers fail to respond to t= he OFO, or their response is insufficient to correct the problem, Northern = Border may take further action including the curtailment of firm service or= the immediate cash out of cumulative imbalances that are in excess of 10% = of the Historical Flow Quantity. =20 Northern Border will not be liable for any costs incurred by a shipper in c= omplying with or be exposed to any damages that result from an interruption= in service due to an OFO. =20 =20 Impact of OFO Tariff Changes on Interconnects =20 FERC Order No. 637 requires that pipelines "take all reasonable actions to = minimize the issuance and adverse impact of Operational Flow Orders (OFOs).= " Northern Border recognizes that maintaining daily and cumulative OBA imb= alances with its interconnected parties within reasonable tolerances levels= is critical in meeting such obligation across the grid. Consequently, the= November 1 tariff changes includes language which define what is an accept= able tolerance range on a Northern Border OBA imbalance. =20 To serve as a benchmark, Northern Border has already begun calculating a Hi= storical Flow Quantity (HFQ) for each point of interconnection on Northern = Border's system. The HFQ is the lesser of the average daily scheduled quan= tity for the previous 15 consecutive Gas Days or the actual daily flow quan= tity for such time period. =20 =20 On November 1, the default cumulative OBA imbalance tolerance level for a g= iven interconnect on Northern Border's system will be +/- 10% of the point'= s HFQ. If such approach fails to meet the needs of an interconnected part= y, Northern Border's tariff does permit the use of an alternative tolerance= level at a given point of interconnect as long as it has been mutually agr= eed to both OBA parties. =20 Furthermore, the daily OBA swings at interconnects on Northern Border that = are on pressure control will also be monitored more closely; the default da= ily OBA imbalance tolerance level will be +/- 5% of the daily scheduled qua= ntity. Once again, Northern Border's tariff does permit deviation from thi= s "standardized" daily tolerance if an alternative method is mutually accep= table to the OBA parties.=20 =20 For those who would like to initiate discussions on establishing OBA imbala= nce tolerance levels with Northern Border that deviate from the defaults de= scribed above, please contact Scott Coburn at (402) 398.7760. =20 =20
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