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TSP/TSP Name:  143363542-CHEYENNE PLAINS GAS PIPELINE Critical: N
Notice Type Desc (1):  TSP CAP OFFERING Notice Type Desc (2):  CAPACITY FOR SALE
Notice Eff Date/Time:  05/25/2017 1:02:54PM Notice End Date/Time:  06/27/2017 9:00:00am
Post Date/Time:  5/25/2017 1:02:54 PM Notice ID: 116577
Reqrd Rsp:  5 Rsp Date: 
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  CPG ROFR OPEN SEASON
Notice Text:
Motor vehicle bill of sale

Open Season Notice of Available Firm Capacity on Cheyenne Plains Gas Pipeline Company, L.L.C. (“CPG”)

Bid Deadline – 2:00 PM Mountain Time, June 26, 2017

Due to the expiration of an existing Firm Transportation Service Agreement (“FTSA”), CPG is conducting a binding open season for firm transportation capacity available effective May 1, 2018.  The capacity offered under this posting is subject to a Right-of-First Refusal by an existing shipper who is the current holder of this firm capacity (“Existing Shipper”).

Rate Schedule:

FT

Volume / Maximum Delivery Quantity:

 

5,000 Dth/day beginning May 1, 2018

Primary Receipt Point(s):

WIC Thunder Chief (800716)

 

 

Primary Delivery Point(s):

ANR Greensburg (800859)-2,500

 

PEPL South Rattlesnake Creek (800893)-2,500

Open Season Start:

May 25, 2017 – 12:00 pm Mountain Time

Open Season End:

June 26, 2017 - 2:00 pm Mountain Time

Award Notification:

July 25, 2017– 2:00 pm Mountain Time

Bid Sheet:

Email attached Bid Sheet to KMWestBids@KinderMorgan.com

 
 
MATCHING RIGHTS OF EXISTING CUSTOMER  
 
Within ten (10) business days after the close of this Open Season, CPG will notify the Existing Shipper of the best offer or offers received for the expiring capacity (determined in accordance with the Evaluation Criteria set forth below).  Within ten (10) business days after such notification by CPG, the Existing Shipper will notify CPG of its intent to match the best offer(s).  If the Existing Shipper does not agree to match the best offer(s), then the Existing Shipper relinquishes all rights to such capacity and CPG may enter into a FTSA with the bidder(s) submitting the highest offer(s); provided, however, that CPG shall not be required to enter into a FTSA that is at less than CPG's applicable maximum tariff rate.

 

General Open Season Requirements:

Bids must include the bidding party's name, Open Season Name (‘CPG 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 CPG's FERC Gas Tariff.

(c) The person submitting the bid has full authority to bind the bidding party.

 

The bid rate must be presented as follows:

The reservation rate per Dth/month or stated as the maximum tariff rate.

 

There will be no contractual ROFR offered with this capacity.

 

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 CPG'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 CPG may hold on other pipelines.

 

CPG 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 CPG's FERC Gas Tariff.  CPG also reserves the right to reject bids for quantities that are not for the same quantity for the duration of the term.

 

CPG 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 CPG 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.

 

Creditworthiness Criteria:

 

The successful bidder(s) must satisfy the creditworthiness requirements of CPG's FERC Gas Tariff.  Bidders that fail to satisfy such creditworthiness requirements within a reasonable time will have their capacity award withdrawn.  CPG will treat the financial statements provided by bidders as confidential.

 

Each successful bidder and CPG shall enter into and execute a FTSA reflecting the terms of its bid as awarded by CPG.  The FTSA will be in the form contained in CPG's FERC Gas Tariff.

 

 

Evaluation Criteria:

 

If CPG receives acceptable bids for capacity in excess of the actual amount of available capacity, then the capacity will be awarded, subject to the Existing Shipper's Right-of-First Refusal, based on the Present Value (PV) of each bid as calculated below; provided, however, CPG reserves the right to aggregate and/or prorate bids that generate the highest PV to CPG.

 

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 0.3092% (which is the annual discount rate of 3.71% 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.

 

Contact Information:

 

Questions concerning this Open Season should be directed to:

 

Randy Barton             (719) 520-4667

Thania Delgado          (719) 520-4482

Mark Iverson              (719) 520-4587

Robin Janes               (719) 667-7555

Tim Mang                   (719) 520-4373

Damon McEnaney      (719) 520-4472

Steve Newell              (719) 520-4341

Dan Tygret                 (719) 520-3765


 

CPG ROFR

Open Season Bid Sheet

Form of Service: FT

Email Bid To: KMWestBids@KinderMorgan.com

A.    Shipper Information

                        Legal Name of Bidder:__________________________

                        Name of Requesting Party:_______________________

                        Title of Requesting Party:________________________

                        DUNS Number:________________________________­

                        Phone:_______________________________________

B.    Term of Service(i.e. 2 Years):____________________________   

Requested Term Start Date:_____________________________

Requested Term End Date:_____________________________     

 

C.   Maximum Delivery Quantity (MDQ):___________

            Will you accept a pro rata allocation of capacity if necessary                Yes           NO

Primary Receipt Point(s)

Requested Quantity

(Dth per Day)

 

 

 

 

 

 

 

 

 

 

Total Receipt Quantity

 

 

Primary Delivery Point(s)

Requested Quantity

(Dth per Day)

 

 

 

 

 

 

Total Delivery Quantity

 

 

D.        Bid Rate (express as a monthly rate per Dth or maximum reservation rate):­­­__$___________

*By submitting a bid to CPG, 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 CPG's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.

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