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Natural gas

Northern Natural Gas Company Terminates Contracts with Quad County Corn Processors, LLC

Strategic Insights

— 1 min read

Northern Natural Gas Company ("Northern") has submitted a notice to the Federal Energy Regulatory Commission ("FERC") of its intention to terminate service under certain contracts with Quad County Corn Processors, LLC ("Quad County"). The termination is due to Quad County's failure to maintain creditworthiness, as required by Section 46 of Northern's FERC Gas Tariff. The affected contracts include Firm Transport, SMS, IDD, PDD, and Preferred Deferred Delivery. The termination date will be thirty calendar days from the date of the notice, or October 4, 2025, unless credit assurance is provided by Quad County within twenty calendar days.

Key Takeaways:

  • Northern Natural Gas Company has notified FERC of its intention to terminate service under five contracts with Quad County Corn Processors, LLC.
  • The termination is due to Quad County's failure to maintain creditworthiness, as per Section 46 of Northern's FERC Gas Tariff.
  • The affected contracts include Firm Transport (Contract No. 118069, 2,400 Dth/day), SMS (Contract No. 119249, 140 Dth/day), IDD (Contract No. 119770, 5,000 Dth/day), PDD (Contract No. 133469, 0 Dth/day), and Preferred Deferred Delivery (Contract No. not specified).
  • Quad County has no customers to be served under these agreements.
  • The termination date will be thirty calendar days from the date of the notice, or October 4, 2025, unless credit assurance is provided by Quad County within twenty calendar days.

Statistics:

  • 5 contracts affected by termination: Firm Transport, SMS, IDD, PDD, and Preferred Deferred Delivery.
  • 2,400 Dth/day of Firm Transport service to be terminated.
  • 140 Dth/day, 5,000 Dth/day, and 0 Dth/day of SMS, IDD, and PDD services to be terminated, respectively.
  • 20 calendar days given to Quad County to provide credit assurance and avoid termination.
  • 30 calendar days from September 4, 2025, as the termination date, or October 4, 2025.

Sources:

  • Northern Natural Gas Company, "Notification of Termination of Contracts of Quad County Corn Processors, LLC," September 4, 2025, submitted to the Federal Energy Regulatory Commission.
  • 18 C.F.R. § 154.602 and Section 46 of Northern's FERC Gas Tariff.

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