Open Season Notice of Available Firm Capacity on
Cheyenne Plains Gas Pipeline Company, L.L.C. (“CPG”) from
Cheyenne receipt points into Rockies Express Pipeline LLC (“REX”)
Bid Deadline – 2:00 PM Mountain Time, October 23, 2017
CPG has determined that modifying and utilizing existing CPG compression at its Cheyenne
yard will result in an additional 250,000 dekatherms (“Dth”) per day of firm transportation
capacity from Wyoming Interstate Company, L.L.C. (“WIC”) and Colorado Interstate Gas
Company, L.L.C. (“CIG”) receipt points at its Cheyenne yard for increased delivery into REX.
CPG is conducting a binding Open Season for this transportation service capacity as outlined
below:
250,000 Dth/day beginning October 1, 2018
800716 WIC/CPG (TDC) THUNDER CHIEF
800184 WIC/CPG (CUR) CURLEY
800614 CIG/CPG (RCD) RED CLOUD
*Up to meter unsubscribed capacity.
800848 REX/CPG (CZB) CRAZY BEAR
Alternate Receipt and Delivery Locations on CPG's system will be subject to the applicable maximum tariff rates on CPG system.
CPG proposes to construct additional facilities to provide this capacity subject to the receipt and acceptance by CPG of all other necessary management and regulatory approvals, permits and other authorizations for the additional facilities in form and substance satisfactory to CPG in its sole discretion. CPG reserves the right to not proceed with the development of the expansion capacity if CPG does not receive approval for the construction of the additional facilities from its senior management on or before October 25, 2017.
October 24, 2017 – 2:00 pm Mountain Time
Email attached Bid Sheet to KMWestBids@KinderMorgan.com
Bids must include the bidding party's name, Open Season Name (‘Cheyenne receipt points to REX'), 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 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 either presented as the reservation rate per Dth/month or stated as the maximum tariff rate.
There will be a contractual right-of-first-refusal (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. 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. 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 an 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 allocated based on the Present Value (PV) of each bid as calculated below; provided, however, CPG reserves the right to aggregate 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 0.3508% (which is the annual discount rate of 4.21% 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:
Laine Lobban 719-520-4344
Greg Ruben 719-520-4870
Cheyenne receipt points to REX
Open Season Bid Sheet
Form of Service: FT
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., 5 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)
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.