This supplement to the open season posted by Colorado Interstate Gas Company, L.L.C. (“CIG”) on September 18, 2017 (Notice ID 116791 and previous Notice ID 116759) revises the open season as follows:
· Term and Rate section: The commencement date is now October 1, 2018 and CIG is providing additional term options (see detail below).
Open Season Notice for Expansion Firm Capacity on CIG 5A&B Lateral receipt points to Cheyenne Hub High Pressure Pool delivery points
Bid Deadline – 10:00 AM Mountain Time, September 25, 2017
Colorado Interstate Gas Company, L.L.C. (“CIG”) has determined that modifying and utilizing existing CIG compression at its Cheyenne yard will result in additional firm transportation capacity from points of receipt on CIG's 5A and 5B Lateral to the Cheyenne Hub High Pressure Pool points of delivery. CIG is offering this transportation capacity in this Open Season as outlined below:
Rate Schedule:
TF-1
Volume MDQ:
230,000 Dth per day available from the Denver Julesburg Points of Receipt described below upon the in-service date of the compression modification facilities (anticipated to be as soon as October 1, 2018) (“In-Service Date”).
Primary Receipt Point(s):
*Up to meter capacity
Existing Points of Receipt on Segment 218 for volumes of up to 230,000 Dth per day on the In-Service Date of the compression modification facilities.
Primary Delivery Point(s):
800614 Red Cloud (RCD)
291661 Tomahawk (TOM)
800104 Bowie (BOW)
Secondary Receipts at the same rate as the Primary Point(s):
800490 Neff Lake (NEF)
800421 Mewborne, Big Thompson, Westfield, Spindle (MEW)
291761 Platte Valley (PTV)
800759 Watkins (WAT)
800272 Gilcrest (GIL)
800642 Roggen (ROG)
800212 Dover (DOV)
Secondary Delivery at the same rate as the Primary Point(s):
896046 Ponderosa (PON)
891989 Lodgepole (LPM)
800058 Arrowhead (AHD)
800769 Weld County KN (WEL)
892247 Crazy Horse (CZH)
800139 Cheyenne Hub (CHB)
800361 Lakin PEPL Processed (LAP)
800094 Baker PEPL (BKP)
800078 Beaver (BEA)
891044 Forgan (FOR)
800089 Big Blue (BIG)
891129 Dumas Station (DUM)
Term and Rate:
For volumes up to 230,000 Dth per day, a term commencing on the In-Service Date of the compression modification facilities (anticipated to be as early as October 1, 2018); provided, however, that a bidding shipper may condition its bid upon: (i) its Firm Transportation Service Agreement (“FTSA”) beginning on the later of October 1, 2018, or at least three (3) days following the In-Service Date; (ii) its FTSA starting no later than March 1, 2019; and (iii) bidding shipper being awarded firm mainline capacity in the Wyoming Interstate Company, L.L.C. (WIC) open season being conducted contemporaneously herewith.
Transporter proposes to construct additional facilities to provide this capacity subject to the receipt and acceptance by Transporter of all other necessary management and regulatory approvals, permits and other authorizations for the additional facilities in form and substance satisfactory to Transporter in its sole discretion. Transporter reserves the right to not proceed with the development of the expansion capacity if Transporter does not receive approval for the construction of the additional facilities from its senior management on or before September 27, 2017.
CIG anticipates that bids with terms of five (5) years and with reservation rates of at least $3.0417 per Dth per month will be required for the expansion projects to go forward and/or for capacity to be awarded under this Open Season (reservation rate bids will be exclusive of commodity charges contained in CIG's Tariff, and additional commodity charges will be assessed for any volumes actually transported under those agreements).
Open Season Start:
End:
Deadline to Match:
Award Notification Date:
11:00 AM MST, September 6, 2017
10:00 AM MST, September 25, 2017
10:00 AM MST, September 27, 2017
11:00 AM MST, September 27 2017
Email attached Bid Sheet to KMWestBids@KinderMorgan.com
General Open Season Requirements:
Bids must include the bidding party's name, Open Season Name (‘CIG 2018 5AB to Cheyenne'), 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 including, without limitation, the creditworthiness requirements.
(c) The person submitting the bid has full authority to bind the bidding party.
The bid rate must be presented as either a recourse reservation rate or a discounted rate and must state the reservation rate per Dth/month or stated as the maximum tariff rate.
In addition to the bid rate, each reservation rate bid 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.
Bids offering discounted rates must also provide that, subject at all times to FERC's approval of the particular costs, CIG shall be entitled to recovery of Greenhouse Gas Emissions Costs incurred by CIG attributable to natural gas transported by CIG on its system. As used herein "Greenhouse Gas Emissions Costs" means (i) the cost of any carbon emissions tax or other greenhouse gas assessment that is imposed on CIG, and/or (ii) the cost of any greenhouse gas mitigation efforts, including the costs of credits and offsets that CIG incurs to comply with any greenhouse gas laws, rules or regulations. If (i) CIG is unsuccessful in having the FERC-approved Greenhouse Gas Emissions Costs incurred by it recovered through a FERC-approved surcharge applicable to all shippers, and (ii) such amounts are recoverable only through CIG's FERC-approved recourse rates, then shipper must agree to modify its discounted fixed monthly reservation rate by the amount of CIG's maximum reservation rate under Rate Schedule TF-1 that is attributable to such costs.
CIG reserves the right to reject 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 the duration of the term.
Creditworthiness Requirements:
The successful bidder(s) must satisfy the creditworthiness requirements of CIG's FERC Gas Tariff. In addition, in connection with service requiring the construction of new facilities, successful bidders must, at a minimum, demonstrate creditworthiness equal to two (2) years of anticipated charges for the awarded transportation capacity. CIG will assess the creditworthiness of each successful bidder in accordance with Section 4.14 of CIG's FERC Gas Tariff. Bidders that fail to satisfy such creditworthiness requirements within a reasonable time will have their capacity award withdrawn. CIG will treat the financial statements provided by bidders as confidential.
Each successful bidder and CIG shall enter into and execute a Firm Transportation Service Agreement (“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.
Evaluation Criteria:
CIG has entered into a prearranged agreement with a right to match. If, following the close of the 5A&B Open Season, it is determined that another bidder has provided a bid with a higher ranking bid than the bid of the shipper, that shipper will have two (2) business days to match that higher ranking bid, in which case the shipper shall be awarded the capacity.
If CIG receives acceptable bids for capacity in excess of the actual amount of available capacity, then the capacity will be allocated based on the Present Value (PV) of each bid as calculated below; provided, however, CIG reserves the right to aggregate bids that generate the highest PV to CIG.
PV will be the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term.
The PV for each month will be calculated as follows:
PV = (R X Q)/((1+i) to the power of n)
Where:
R = the monthly reservation bid rate
Q = the monthly bid quantity
i = the monthly discount rate of 0.33% (which is the annual discount rate of 3.96% divided by 12).
n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on).
If there is insufficient capacity available to meet all successful bids, and if two or more of the lowest accepted bids are of equal 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.
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.
Contact Information:
Questions concerning this Open Season should be directed to:
Laine Lobban (719) 520-4344
Greg Ruben (719) 520- 4870
Open Season Bid Sheet
Open Season EBB Identifier: 2018 CIG 5AB to Cheyenne
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of Bidder:
Name of Requesting Party:
Title of Requesting Party:
DUNS Number:
Phone:
B. Term of Service (e.g., 1 Year):
Effective Start Date:
Term End Date:
C. Maximum Daily Quantity (MDQ) :
Will you accept a pro rata allocation of capacity if necessary Yes__ No___
Receipt Point(s)
Delivery Point(s)
Requested Dth/day MDQ
D. Bid Rate (express as the maximum recourse reservation rate or a rate per Dth per month and check the appropriate box to reflect a discounted reservation rate.):
□ Maximum Rate Schedule TF-1 Reservation Rate
□ Discounted Reservation Rate of $_________________/Dth.
*By submitting a bid to Transporter, the bidding party certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.