Open Season Notice of Available Firm Capacity on El Paso Natural Gas Company, L.L.C. (EPNG): San Juan/ILEARWAS to DSCALTOP/DSCALEHR
Bid Deadline – 2:00 PM Mountain Time, September 26, 2018
Portable Document Format (.pdf) file and description of available capacity of Open Season: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=EPNG&parent=1600
EPNG is conducting a binding Open Season for existing available capacity as outlined below:
Up to 100,000 per day. Please see the open season tables (found in the above Hyperlink) for a description of the available capacity as further explained in this open season and contact your Marketing Rep if you have questions.
Please contact your Marketing Rep to determine availability from specific primary receipt points of interest.
STML PER (PIN 302346), STML SJN (PIN 302347), STML ANA (PIN 302344)
EPNG will consider bids that include as a primary receipt point those points currently designated for or under construction upon their in-service date. To be considered, bidders must indicate the primary receipt point (in the same rate zone) to be used until the in-service date of the new receipt point. Bids must include a date certain as the term of service start date and may not include a start date of the “in-service date” of the receipt point.
DSCALTOP/DSCALEHR/PLNSTRAN or other delivery points along the paths described in the attached tables.
Primary delivery point capacity is available to delivery points in varying quantities in certain months as detailed in the attached open season bid sheet.
Delivery requests per point should not exceed the total unsubscribed capacity available at each point.
Please contact your Marketing Rep to determine availability to specific points of interest.
DSCALEHR (PIN 301016), INORBAJA (PIN 301693), DPG&ETOP (PIN 314604), DSCALTOP (PIN 332503), IBLYTHE (PIN 314980), DMOJAVE (PIN 332505), ICADIZ (PIN 301377), DAGMOJ (PIN 332569), IMSQUITE (PIN 398670), IGRIFFTH (PIN 320614), IARLVALY (PIN 314985), KRAMER (PIN 332554), SIDEWNDR (PIN 332555), PASTORIA (PIN 332553), SOCWR (PIN 32531), LAPALOMA (PIN 302144)
Award Notification Date:
4:00 PM MST, September 28th, 2018
Email attached Bid Sheet to KMWestBids@KinderMorgan.com
NOTE: EPNG 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 the EPNG'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. EPNG 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.
Bids must include the bidding party's name, Open Season Name (San Juan/ILEARWAS to DSCALTOP/DSCALEHR), 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 EPNG'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.
EPNG will consider a contractual ROFR 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 EPNG's FERC Gas Tariff as 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 EPNG may hold on other pipelines.
EPNG will consider negotiated rate bids. EPNG notes that negotiated rates above maximum tariff rates will be considered equivalent to maximum tariff rates for purposes of the PV evaluation as stated below in the Evaluation Criteria section.
EPNG 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 EPNG's FERC Gas Tariff. EPNG also reserves the right to reject bids for quantities that are not for the same quantity for the duration of the term.
EPNG will consider bids conditioned upon the receipt of the approval of bidder's management, management committee, and/or board of directors or other appropriate management structure by October 11, 2018. Any bidder who conditions its bid as described herein and fails to obtain management approval must provide EPNG written notice no later than 5:00 p.m. MT on October 12, 2018, or bidder will be deemed to have waived this condition.
EPNG 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 EPNG 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 EPNG's FERC Gas Tariff. Bidders that fail to satisfy such creditworthiness requirements within a reasonable time will have their capacity award withdrawn. EPNG will treat the financial statements provided by bidders as confidential.
Each successful bidder and EPNG shall enter into and execute a Transportation Service Agreement (TSA) reflecting the terms of its bid as awarded by EPNG. The TSA will be in the form contained in EPNG's FERC Gas Tariff.
Evaluation Criteria:
If EPNG receives acceptable bids for capacity in excess of the actual amount of available capacity, then EPNG 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, EPNG 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 a pro rata 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 0.4133% (which is the annual discount rate of 4.96% 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).
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
Dan Tygret (719) 520-3765
Open Season Bid Sheet
San Juan/ILEARWAS to DSCALTOP/DSCALEHR
Form of Service (e.g. FT-1):__________
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
Effective Start Date:___________________________________
Requested Term End Date:_____________________________
C. Transportation Contract Demand (TCD):
Will you accept a pro rata allocation of capacity if necessary Yes NO
Please use the attached Open Season Bid Sheet to submit specific requested capacities.
Available Capacity –San Juan or ILEARWAS to DSCALTOP and DSCALEHR (FT1)
Year
Primary Receipt
Primary Delivery Pt.
Path
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2018
ILEARWAS
DSCALEHR
AN2-NS3
AN2-CC1
DSCALTOP
AN2-NN2
100,000
PLNSTRAN
AN2
TOTAL
2019
30,450
67,302
53,981
2,248
46,019
2020
31,277
77,508
59,976
66,137
56,632
25,884
29,429
15,683
31,145
14,853
15,402
40,024
33,863
43,368
74,116
70,571
84,317
68,855
53,870
7,090
2021 Forward
39,732
35,841
20,043
27,089
35,016
25,947
44,866
37,070
44,941
74,053
Open Season Bid Sheet – Fill in Requested MDQ per month
*The sum of the MDQs at the Primary Delivery Location(s) must equal the TCD.
D. Bid Rate (express as a monthly rate per Dth or maximum reservation rate):_____________
*By submitting a bid to EPNG, 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 EPNG's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.