ADDITIONAL OPEN SEASON – AOS1903-1
TEXOK TO TEXOK
FTS TRANSPORTATION
AVAILABLE WITH SW OPTION
This is an Additional Open Season (AOS) pursuant to Section 5.1(c)(4) of the General Terms and Conditions (GT&C)of Natural's (NGPL'S) FERC Gas Tariff (Tariff)for firm transportation capacity. Bidders may submit a bid in a manner consistent with NGPL's tariff procedures in GT&C Section 5.1 (d). Bids may be submitted in either the SFV Rate Form or a fixed Negotiated Rate Form.
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Firm capacity with primary receipt points in Natural's Texok Zone and primary delivery points in Natural's Texok Zone (as further described in the Available Capacity Section below). As described below under Optional Services, the System Wide (SW) Option will be included in the evaluation of bids received.
CAPACITY AVAILABLE (Dth./day)/TERM
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47,602 Dth/d is available for eastbound flow from Segments 15 and 16 to Segments 17 and 26 from April 1, 2019 through April 30, 2019.
AVAILABLE RECEIPT POINTS
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The following receipt points in Segments 15 and 16 are available for use as primary receipt points in this AOS:
LOC # Primary Receipt Point Name Segment MDQ
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49871 SSC/NGPL South Edmond Carter 15 47,602
49618 Scoopex/NGPL Ratliff City Carter 15 47,602
904567 BP Prod/NGPL Red Oak Latimer 16 47,602
Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.
CURRENTLY AVAILABLE DELIVERY POINTS
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The following delivery points in Segments 17 and 26 are available for use as primary delivery points in this AOS:
LOC # Primary Delivery Point Name Segment MDQ
44602 NGPL/MEP Atlanta Cass 26 47,602
44439 MEP/NGPL Lamar 17 47,602
NGPL/MEP Atlanta Cass (LOC 44602) in Segment 26 is the eastern most delivery point available in this AOS.
Bidders interested in other primary delivery points should contact their Account Director at Natural prior to bid submission.
SECONDARY RECEIPT POINTS
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For any capacity awarded to a bidder at a reservation rate which is less than the applicable maximum reservation rate set forth in Natural's Tariff, the reservation rate will apply to all secondary receipt points in the Texok Zone.
SECONDARY DELIVERY POINTS
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For any capacity awarded to a bidder at a reservation rate which is less than the applicable maximum reservation rate set forth in Natural's Tariff, the reservation rate will apply to all secondary delivery points in the Texok Zone.
CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM TEXOK TO TEXOK:
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Without SW Option
Off- Peak
$3.15
With SW Option
Off-Peak
$6.71
Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.
BID PARAMETERS
POSTING and BIDDING PERIOD: March 21, 2019 – March 25, 2019.
BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on March 25, 2019.
Email bids to NGPLMARKETING@KINDERMORGAN.COM
DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 5.45%, discounted to April 1, 2019 which shall be the Discount Date as that term is used in this posting.
BID REQUIREMENTS AND AOS TERMS AND CONDITIONS
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OPTIONAL SERVICES
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The value of the optional System Wide (SW) service option is applicable to the bid evaluation of the capacity included in this AOS, and therefore, the bid reservation rate for the SW option will be taken into account for bid evaluation purposes.
BID REQUIREMENTS
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Shipper may submit multiple bids, but each bid will be evaluated independently. No contingent bids will be accepted in this AOS.
Any bid submitted for a specified rate equal to the applicable maximum Tariff rate shall be deemed to be a bid at the applicable maximum Tariff rate, as may be revised from time to time.
Bids may be submitted in either an SFV rate form or a fixed Negotiated Rate form.
CREDITWORTHINESS REQUIREMENT
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All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the GT&C of Natural's Tariff, prior to submitting a bid. Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid. Potential bidders are encouraged to contact Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.
COMMODITY CHARGES AND SURCHARGES
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The reservation rate included in any bid must be for the Base Reservation Rate only (including the SW option rate, to the extent applicable), which is exclusive of all applicable surcharges. Any applicable commodity charges and surcharges and reservation surcharges will not be included in the guaranteed revenue stream considered for bid evaluation purposes. Advance Payments are separately discussed below. In addition to the awarded Base Reservation Rate, the winning Bidder will pay all applicable commodity charges and surcharges and reservation surcharges at the applicable maximum rate contained in Natural's Tariff, as may be revised from time to time.
FUEL AND GLU CHARGES
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The reservation rate included in any bid is exclusive of all applicable fuel and gas lost and unaccounted for (GLU) charges. Bidder will be required to pay any and all applicable fuel and GLU charges set forth in Natural's Tariff, as may be revised from time to time.
QUANTITY LIMITATIONS/
AUTHORIZED OVERRUN SERVICE
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For any capacity which may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to the Bidder's awarded Contract MDQ as a result of any segmentation. Firm deliveries made on any day in excess of the applicable contract MDQ as a result of any segmentation, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural's Tariff. Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in Natural's Tariff, as may be revised from time to time.
ADVANCE PAYMENTS
An Advance Payment will not increase the value of a bid received in this AOS.
BID EVALUATION METHODOLOGY
All bids for this AOS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period. All bids will be discounted to the Discount Date for NPV purposes. Natural's internet website may be accessed at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on June 15, 2011, on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.
BID AGGREGATION
--------------- In order to determine the successful Bidders, Natural shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.
DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING
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In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available). In order to determine the highest economic value of all acceptable bids received, Natural will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids. If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution. The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation. The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation. If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder. In applying the above procedures, in the event that Natural receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.
NPV TIEBREAKER METHODOLOGY
If a tie between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaking procedures set forth in Natural's Tariff at Section 5.1(d)(6) of the GT&C.
Reservations
Natural reserves the right to clarify 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 Natural shall have no obligation to do so.
NATURAL GAS PIPELINE COMPANY OF AMERICA LLC
BID FORM FOR FTS CAPACITY
In order to be valid, a bid must contain all of the applicable information required by this Bid Form. Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.
DATE ____________________ AOS1903-1
BIDDER/SHIPPER NAME _________________________________________________
MONTHLY BASE RESERVATION RATE
FTS SERVICE TYPE (SELECT ONE) PEAK RATE
FTS (with SW Option) _____________
FTS (without SW Option) _____________
TERM START DATE __________ TERM END DATE _____________
CONTRACT MDQ BID _____________
PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)
LOC NAME LOC # LOC MDQ
RECEIPT(S) _____________ _________ _________
_____________ _________ _________
PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)
DELIVERY(S) _____________ _________ _________
If Bidder will accept less than the Contract MDQ bid, state Minimum Acceptable Percentage of MDQ __________________________
_____________________ _____________________________
NAME TITLE
_________________________
DATE