Open Season
Colorado Interstate Gas Company, L.L.C.
Effective Date: November 1, 2015
Quantity Available: 6,000 Dth/day
Status: Active
Receipt Locations:
Purgatoire (800556): 6,000 Dth/day
Delivery Locations:
NNG Dumas (891129): 6,000 Dth/day
Location Type: Rec to Del
Bid Start Date: May 11, 2015
Bid Due Date: June 9, 2015
Due to the expiration of an existing Firm Transportation Service Agreement (FTSA), Colorado Interstate Gas Company, L.L.C. (CIG) is conducting a binding open season for 6,000 Dth/day of annual firm transportation capacity available effective November 1, 2015, with the receipt and delivery locations outlined above. This capacity is subject to a right of first refusal (ROFR) from the expiring contract holder.
This Open Season will commence at 2:00 p.m., MCT, on May 11, 2015, and will close at 2:00 p.m., MCT, on June 9, 2015. Parties interested in bidding in this Open Season should submit bid(s) to CIG by June 9, 2015 at 2:00 p.m., MCT.
SUBMISSION OF BIDS
Parties interested in bidding in this Open Season should submit their bids to CIG before the close of the open season via email at the following address: KMWestBids@KinderMorgan.com. Bids should include the bidding party's name, Name of Open Season ‘Raton Basin ROFR Open Season', quantity, term, and rate. By submitting a bid, the bidding party certifies that (a) all information contained in the bid is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of CIG's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party, subject to management approval as provided.
The bid rate must be presented as the reservation rate per Dth/month or stated as the maximum tariff rate. CIG reserves the right to reject negotiated rate bids, bids that have rates less than the maximum recourse rate, bids stated as the dollar equivalent of the current maximum recourse rate, bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms or are inconsistent with the provisions of CIG's FERC Gas Tariff. CIG also reserves the right to reject bids for quantities that are not for the same quantity for each month of the season or for the year.
In addition to the bid rate, each bidding party shall be subject to the applicable maximum usage rate and maximum usage surcharges, all other maximum rates, charges and surcharges, including ACA, Fuel and L&U, and any other authorized surcharges assessed under the applicable Rate Schedule of CIG's FERC Gas Tariff as those amounts may be amended or superseded from time-to-time. This includes incremental lateral charges and any third party charges resulting from the use of capacity that CIG may hold on other pipelines.
CIG notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an open season for capacity in which the pipeline may allocate capacity on a pro rata basis. It appears to CIG that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order.
EVALUATION CRITERIA
CIG will evaluate all Open Season bids based on the total net present value of the monthly reservation charges for each bid. If there is insufficient capacity available to meet all successful bids, and if two or more of the lowest accepted bids are of equal net present value, unless such bidder(s) have elected not to have the bid(s) prorated, capacity will be allocated pro rata based on the Maximum Delivery Quantity of the bids that are tied.
The successful bidder(s) and the holder of the expiring contract will be notified by no later than 4:00 p.m., MCT, on June 11, 2015. Upon notification, the holder of the expiring contract shall have up to ten (10) business days to notify CIG of its intent to match the successful bid(s).
CREDITWORTHINESS REQUIREMENTS
The successful bidder(s) must satisfy the creditworthiness requirements of CIG's FERC Gas Tariff. CIG will review the creditworthiness of each successful bidder to ensure they have credit support equal to this level. Bidders that fail to satisfy the creditworthiness requirements within fourteen (14) calendar days after being awarded capacity will have their capacity award withdrawn. CIG will treat the financial statements provided by bidders as confidential.
Satisfactory evidence of creditworthiness may include a Letter of Credit, a guarantee from a creditworthy party or a satisfactory review of the financial status of the successful bidder(s) by CIG.
Each successful bidder and CIG shall enter into and execute a FTSA reflecting the terms of its bid as awarded by CIG. The FTSA will be in the form contained in CIG's FERC Gas Tariff.
CONTACT INFORMATION
Questions concerning this Open Season should be directed to:
Randy Barton (719) 520-4667 Damon McEnaney (719 520-4472
Cathy Bulf (719) 520-3797 Steve Newell (719) 520-4341
Mark Iverson (719) 520-4587 Steve Saye (719) 520-4328
Robin Janes (719) 667-7555 Dan Willemyns (719) 520-4375
Tim Mang (719) 520-4373 Thania Delgado (719) 520-4482
Ana Gil-hernandez (719)667-7749