Open Season Notice of Available Firm Capacity on Cheyenne Plains Gas Pipeline Company, L.L.C. ("CPG")
Bid Deadline – 2:00 PM Mountain Time, August 1, 2019
Portable Document Format (.pdf) file of Open Season: http://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=CP&parent=1600
CPG is conducting a binding Open Season for existing available capacity as outlined below:
Open Season Name:
CPG Forwardhaul
Rate Schedule:
FT
Volume Maximum Delivery Quantity (“MDQ”):
CPG has capacity availability from receipt points at the Cheyenne Hub, as well as receipt points south of the Cheyenne Hub up to 100,000 Dth/day
Multiple contracts may be awarded to the same successful bidder, should such bidder bid for varying contractual volumes.
Primary Receipt Point(s):
Existing receipt points at Cheyenne Hub, other existing or anticipated receipt points south of Cheyenne Hub.
Primary Delivery Point(s):
Mullinville (800884) and other points of delivery at the south end of CPG's system depending upon available meter capacity. Please contact your Account Director to discuss primary delivery point options.
Parties that are interested in capacity from other primary receipt point(s) or to other primary delivery point(s), or for other periods, should contact their service representatives or any of the individuals listed below.
Secondary Receipt and Delivery Points:
The capacity offered in this Open Season will include the right to utilize the following points on a secondary basis at the same contracted rate:
Secondary Receipt Locations:
Thunder Chief (800716), Curley (800184), Red Cloud (800614), Crazy Bear (800848), Greensburg (800859), Ford (892158), Mullinville (800884), South Rattlesnake Creek (800893), and Sand Dune (892156)
Secondary Delivery Locations:
Recommended Term:
CPG recommends that bids have a proposed term beginning November 1, 2019 for up to one year. Discounted bids beyond October 31, 2020 will be rejected. (Although CPG reserves the right to reject any bid which fails to comport with the provisions of this open season).
Open Season Dates:
Open Season Start Date: 2:00 PM MST, July 18, 2019
Open Season End Date (Bids Due): 2:00 PM MST, August 1, 2019
Award Notification Date: 4:00 PM MST, August 2, 2019
Email attached Bid Sheet to KMWestBids@KinderMorgan.com
NOTE: CPG will rely upon the time the bid is received to determine whether the bid was timely. Bids that are received (as determined by the time stamp on CPG's email inbox) after the end date and time listed above will be considered invalid bids and will not be eligible for an award of capacity in this Open Season. CPG recommends that bids be submitted well in advance of the closing time listed above to minimize the risk that any email delay could cause a bid to be excluded from consideration.
General Open Season Requirements:
Bids must include the bidding party's name, Open Season Name (“CPG Forwardhaul”), 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: 1) the reservation rate per Dth/month, 2) the reservation rate per Dth/day (which will be converted to a Dth/month rate for the Transportation Service Agreement (TSA) by rounding to the fourth decimal the result of the formula (daily rate x 365)/12), or (c) the maximum tariff rate.
In addition to the bid rate, each bidding party shall be subject to the applicable maximum commodity rate and maximum commodity 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 may change 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 that do not reflect the same quantity for the duration of the term.
CPG also reserves the right to seek clarification of bids that have what appears to be an obvious error. Any clarification by bidders must be provided in writing and within the time requested by CPG. Such clarifications shall be incorporated as part of the binding bid submitted by the bidder.
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 Requirements:
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 Transportation Service Agreement (TSA) reflecting the terms of its bid as awarded by CPG. The TSA 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 CPG will award and/or allocate the capacity in a manner that yields the highest total PV as calculated below. In determining which bid(s) yield the highest total PV, CPG reserves the right to combine multiple bids, in whole or in part, in a manner that results in a total PV of the combined bids that exceeds the highest PV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept an allocation of capacity).
PV will be calculated as 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 0.4583% (which is the annual discount rate of 5.50% 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).
Contact Information:
Questions concerning this Open Season should be directed to:
Randy Barton (719) 520-4667
Cory Chalack (719) 520-3769
Thania Delgado (719) 520-4482
John Driscoll (719) 520-4471
Mark Iverson (719) 520-4587
Robin Janes (719) 667-7555
Damon McEnaney (719) 520-4472
Dan Tygret (719) 520-3765
Open Season Bid Sheet
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of Bidder:
Name of Requesting Party:
Title of Requesting Party:
DUNS Number:
Phone:
Form of Service: __________________
Requested Term Start Date:
Requested Term End Date:
Requested Maximum Delivery Quantity: Dth/day
Will you accept an allocation of capacity if necessary Yes No
Receipt Point(s)
Requested Receipt Point Quantity (Dth/day)
Delivery Point(s)
Requested Delivery Point Quantity (Dth/day)
*The sum of the delivery point quantities at the primary delivery location(s) must equal the MDQ.
CPG's maximum recourse rate
Discounted Recourse Rate: $ ________ per Dth per ______Month/day
Negotiated Rate: $ ________ per Dth per _______Month/day
In addition to the bid rate, successful bidders will be subject to the applicable maximum commodity rate and maximum commodity 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 maybe 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.
*By submitting a bid to CPG, 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 CPG's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.