DATE: May 30, 2019 TIME: 9:00 AM CDT
TO: ALL KINDER MORGAN LOUISIANA PIPELINE LLC CUSTOMERS
RE: OPEN SEASON FOR INTERIM CAPACITY (“OPEN SEASON”) (OPEN SEASON #104)
Kinder Morgan Louisiana Pipeline LLC (“KMLP”) is holding this Open Season for capacity available for an interim period in accordance with Section 2.1(b)(7) of the General Terms and Conditions of its FERC Gas Tariff, commencing at 9:00 AM CDT, May 30, 2019, and ending at 2:00 PM CDT, May 30, 2019 (the “Open Season Period”). The capacity offered in this Open Season is the subject of a pre-arranged deal. Therefore, the customer under the pre-arranged deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid(s) received in this open season.
Rate Schedule:
FTS
Maximum Daily Quantity (“MDQ”):
November – 42,730 Dth/d
December – 53,080 Dth/d
January – 60,730 Dth/d
February – 56,070 Dth/day
March – 47,175 Dth/d
Term:
November 1, 2019 to March 31, 2020
This capacity is operationally available for the specified interim time period above and cannot be extended beyond the term above.
Primary Receipt Points(s):
PIN 44398 – Columbia Gulf Evangeline
Primary Delivery Point(s):
PIN 49448 – Sabine Pass Liquefaction
Secondary Receipt Point(s) at
which Rates
specified below apply:
All secondary receipt points allowed under KMLP's Tariff.
Secondary Delivery Point(s) at
which the Rates
PIN 44395 – ANR Acadia
PIN 44403 – Egan Hub
PIN 44404 – Pine Prairie
PIN 44405 – NGPL
Monthly Reservation Rate:
$4.59
Commodity Rate for Primary
And Secondary
Deliveries:
$0.0015/Dth*
*Applicable to Firm Transportation Service utilizing the Sabine Pass Expansion Capacity under Rate Schedule FTS.
Other Charges
Shipper shall also pay ACA, applicable fuel and unaccounted for gas charges, and all other applicable charges, surcharges, and penalties specified in KMLP's Tariff, as may be in effect from time to time for Shippers utilizing the North to South Transportation Path.
November 1, 2020 to March 31, 2021
Without limiting or waiving any other rights that KMLP may have with respect to this Open Season, KMLP reserves the following rights:
1. At any time during this Open Season, upon notice and in its sole discretion, to terminate this Open Season, to extend the Open Season Period, or to modify this Open Season.
2. To clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and receipt or delivery points) or discrepancies in bid information, provided that KMLP shall have no obligation to do so.
3. On a not unduly discriminatory basis, to reject any bid or service request that, in KMLP's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of the open season, is otherwise deficient in any respect (including failure to provide credit support as KMLP deems necessary), or requests service outside the scope of this Open Season.
4. To reject any bid that does not specify capacity within the path posted above.
5. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is available at alternate meter locations.
6. To accept negotiated rate bids.
7. To reject contingent bids.
8. To reject bids that do not meet Receipt Point Pressure requirements pursuant to Section 18.1 of the General Terms and Conditions of KMLP's Tariff. KMLP will specify minimum receipt point pressure in resulting FTS agreements.
This Open Season is for capacity available for the receipt/delivery point paths specified above. In order to be considered eligible to be awarded capacity following this Open Season, potential shippers must submit a bid that specifies terms, volumes, receipt points and delivery points that are consistent with the respective dates, quantities and associated receipt and delivery zones outlined above. All Bids should refer to Open Season #104.
Available capacity volumes are contingent upon mainline and meter capacity. Bids cannot exceed the stated maximum volumes.
Parties interested in this capacity should submit a binding Firm Transportation request through the DART system or submit a binding bid to Stuart_Neck@kindermorgan.com. In accordance with Section 2.1(b)(5), any Shipper wishing to bid in an open season must satisfy the creditworthiness requirements in Section 12 of KMLP's tariff prior to submitting a bid. A bid form must include at a minimum the following information: 1) Company's legal name as it will appear on the FTS Agreement; 2) MDQ; 3) the term including the start and end dates; 4) monthly reservation rate per Dth and 5) Primary Receipt(s) and Primary Delivery Point(s). The bid form must be signed by an officer of the Company. Confirm KMLP's receipt of any bid by contacting Stuart Neck at 713-420-2230 between 8 A.M. and 4:30 P.M. CST during the Open Season Period.
All bids submitted during the Open Season may be replaced with a higher Net Present Value (“NPV”) bid during the Open Season Period. Bids cannot be replaced with lower NPV bids. Upon completion of this Open Season, all remaining bids will be considered binding until a successful bid(s) has been awarded.
The pre-arranged deal and all of its terms and conditions are subject to KMLP's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with Section 2.1 of the General Terms and Conditions of KMLP's Tariff, KMLP is posting this Open Season for competitive bidding as provided, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.
The above-specified Contract Terms represent the minimum Contract Terms that KMLP is willing to accept for the capacity underlying the respective Proposal. Bids for less than the minimum Contract Terms will be rejected.
In the event that in the Open Season, a customer submits a competitive bid(s) with a higher NPV/Dth than the Pre-Arranged Deal in total but for a lower volume than what was specified in the Pre-Arranged Deal, the Pre-Arranged Shipper, if electing to match, shall be required to match that lower volume, higher NPV/Dth bid. The remaining volume of the Pre-Arranged Deal that was not bid on in the Open Season shall be contracted for according to the terms of the Pre-Arranged Deal.
All final bids for each Proposal received during the open season will be evaluated on an NPV basis using the following factors:
NPV/Dth = En [R*(1 / (1+i)**n)] / Dth
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
Dth = TQ of Contract
i = Monthly Discount Factor of 0.8333%
In accordance with Section 30.2 of KMLP's Tariff, to the extent the revenue level pursuant to any negotiated rate bid exceeds the revenue level at the recourse rate, the bidder bidding such negotiated rate shall be treated, for capacity award purposes, as if the rate paid is equal to the recourse rate.
Name Stuart Neck 713-420-2230
E-mail Stuart_Neck@kindermorgan.com
BID FORM
SHIPPER'S LEGAL NAME (as it will appear on FTS Agreement):
____________________________________________________________________
REQUESTED MDQ: ___________________________________________________
TERM (Begin and End Dates): ___________________________________________
MONTHLY RESERVATION RATE (per Dth): ________________________________
PRIMARY RECEIPT POINT(S): ________________________
PRIMARY DELIVERY POINT(S): ________________________
OTHER TERMS/CONDITIONS REQUESTED FOR BID EVALUATION:
___________________________________________________________________________
Name:
Title:
Date: