NATURAL GAS PIPELINE COMPANY OF AMERICA LLC
ANNOUNCEMENT OF CAPACITY AVAILABILITY
SUBJECT TO RIGHT OF FIRST REFUSAL
FIRM TRANSPORTATION SERVICE
Posting Number: ROFRN0519-11
Posting Start Date: May 17, 2019
Posting End Date: June 17, 2019
The capacity set forth in this posting is available for bids, subject to the current capacity holder's right of first refusal (ROFR), as more fully described in Section 22.3 of the General Terms and Conditions of Natural's tariff.
CAPACITY AVAILABLE
Rate Schedule: FTS
Date capacity will become available: December 1, 2019
Available Contract MDQ:
December 1 thru March 31
26800 Dth/d
April 1 thru November 30
16750 Dth/d
Available Primary Point MDQ:
Receipt:
LOC NO.
LOC NAME
SEG NO.
ZONE
MDQ (Dth/d)
901458
DCP OPER/NGPL CHITWOOD PLT GRADY
2
MIDC
12174
25731
JEFFSTOR/NGPL VERMILION
24
LA
6671
6216
KMTP/NGPL HAGIST RANCH DUVAL
21
STX
3733
3107
KMTEJAS/NGPL #2 JIM HOGG
18
2326
5388
ONEOKFS/NGPL CUSTER
3
1896
10148
906298
MIDCOAST/NGPL GOODRICH POLK
26
TXOK
4690
1912
Delivery:
66
MIDAMER/NGPL CEDR RAP#2 WASHINGTON
14
MRKT
15544
900133
NICORGAS/NGPL MINOOKA WILL
28
3350
900049
MIDAMER/NGPL MOLINE #2 ROCK ISLAND
3082
58
MIDAMER/NGPL W LIBERTY MUSCATINE
2144
900048
MIDAMER/NGPL MOLINE #1 ROCK ISLAND
1072
900047
MIDAMER/NGPL MOLINE #3 HENRY
938
900046
MIDAMER/NGPL MOLINE #4 HENRY
670
6393
900053
MIDAMER/NGPL DAVENPORT SCOTT
2010
1675
1541
900078
MIDAMER/NGPL OTTUMWA #2 MAHASKA
13
1021
900111
MIDAMER/NGPL RED OAK MONTGOMERY
737
900082
MIDAMER/NGPL OSKALOOSA MAHASKA
570
536
469
900093
MIDAMER/NGPL INDIANOLA WARREN
391
335
PRIMARY PATH
December March Period MDQ 26,800 dth/d:
14,070 dth/d Pathed from the Midcontinent Zone on the Amarillo Leg to the Market Delivery Zone
12,174 dth/d is sourced in the Midcontinent Zone in Segment 2 and 1,896 dth/d is sourced in the Midcontinent Zone in Segment 3 and pathed on a north bound basis through Segment 4 for delivery of 14,070 dth/d to Segment 14 in the Market Delivery Zone.
12,730 Dth/d Pathed from South Texas and Louisiana Zones on the Gulf Leg to the Market Delivery Zone
2,326 dth/d is sourced in Segment 18 and 3,733 dth/d is sourced in Segment 21 in the South Texas Zone.
6,671 dth/d is sourced in Segment 24 in the Louisiana Zone.
South Texas and Louisiana capacity is pathed on a north bound basis for delivery of 3,350 dth/d in Segment 28 and 9,380 dth/d in Segment 14 in the Market Delivery Zone.
April November Period MDQ 16,750 dth/d:
12,060 dth/d Pathed from the Midcontinent Zone on the Amarillo Leg to the Market Delivery Zone
10,148 dth/d is sourced in Segment 2 and 1,912 dth/d is sourced in Segment 3 in the Midcontinent Zone and pathed on a north bound basis through Segment 4 for delivery of 2,719 dth/d to Segment 13 and 9,341 dth/d to Segment 14 in the Market Delivery Zone
4,690 Dth/d Pathed from the Texok Zone on the Gulf Leg to the Market Delivery Zone
4,690 dth/d is sourced in Segment 26 in the Texok Zone and is pathed on a north bound basis through Segment 27 for delivery of 1,675 dth/d in Segment 28 and 3,015 dth/d in Segment 14 in the Market Delivery Zone.
CAPACITY SHAPING REQUIREMENT
A bidder desiring to bid on less capacity than the Available Contract MDQ will be required to bid for aggregate point and segment capacity in the same quantity ratio as the Available Contract MDQ above, if applicable. Such a bid must also reflect the same shaping of capacity by month and seasonal period as the Available Capacity.
Required Receipt and Delivery Zone Ratios
Consistent with the Capacity Shaping Requirement above, to the extent that the Capacity Available includes primary receipt and/or delivery point capacity in more than one zone, a bidder desiring to bid on less capacity than the Available Contract MDQ will be required to bid for aggregate point capacity in the following zone ratios for the applicable period(s), which corresponds to the current capacity holders zone ratios:
RECEIPTS:
ZONE REQUIRED ZONE RATIO
December through March
South Texas Receipt Zone 22.61%
Louisiana Receipt Zone 24.89%
MidContinent Receipt Zone 52.50%
April through November
Texok Receipt Zone 28%
MidContinent Receipt Zone 72%
DELIVERIES:
December through November
Market Delivery Zone 100%
Alternate Receipt/Delivery Point Requirements
A bidder may bid receipt or delivery points which are different than the Available Primary Points indicated above, subject to the following requirements:
1. The aggregate receipt and delivery point capacity in the bid must comply with the required receipt and delivery zone ratios set forth above.
2. Any point included in the bid which is not included above as an Available Primary Point must not require more segment capacity than the corresponding Available Primary Point capacity, and must be in the same respective receipt or delivery zone as the corresponding Available Primary Point.
3. The receipt and delivery point capacity in the bid must be available as of the Posting End Date set forth above.
SFV RATE AND NEGOTIATED RATE FORMS
Bids may be submitted either in an SFV rate form or in the "negotiated rate" form set forth below. Any capacity award to a negotiated rate bidder will be subject to subsequent FERC approval of the negotiated rate transaction.
SFV RATE FORM
Bids submitted in an SFV rate form must contain a monthly base reservation rate within the minimum and maximum rates set forth in Natural's tariff which are applicable to the bid capacity.
NEGOTIATED RATE FORM
The negotiated rate form permitted in this ROFR posting consists of a Negotiated Fixed Monthly Base Reservation Rate and a Negotiated Fixed Base Commodity Rate. No other form of negotiated rate bid will be accepted, including without limitation any negotiated rate form which is based upon a formula. The Negotiated Fixed Monthly Base Reservation Rate and the Negotiated Fixed Base Commodity Rate will apply at all times to service provided to bidder, notwithstanding any changes in Naturals otherwise applicable maximum or minimum tariff base reservation rates.
Negotiated Fixed Monthly Base Reservation Rate. Bids submitted in a negotiated rate form must contain a Negotiated Fixed Monthly Base Reservation Rate which consists of a specified rate for every month included in the bid.
Negotiated Fixed Base Commodity Rate. For any bidder awarded capacity based upon a Negotiated Fixed Monthly Base Reservation Rate bid, the commodity rate to be charged by Natural will be a Negotiated Fixed Base Commodity Rate equal to Naturals applicable maximum tariff commodity rate in effect as of the date of this posting.
DAILY FIRM QUANTITY LIMITATION
For any capacity awarded to a bidder at a reservation rate, which is less than the applicable maximum rate set forth in Natural's tariff, such rate shall apply only to transportation service provided on a firm basis on any day up to a total aggregate daily firm transportation quantity, including any capacity release quantities, equal to the awarded Contract MDQ for such bidder. For any capacity awarded to a bidder under an SFV rate form at less than the applicable maximum rate set forth in Natural's tariff, all additional quantities transported on a firm basis on any day in excess of this daily firm quantity limitation shall be charged the applicable maximum base reservation rate set forth in Natural's tariff, as may be revised from time to time. For any capacity awarded to a bidder under a negotiated rate form at less than the applicable maximum rate set forth in Natural's tariff, all additional quantities transported on a firm basis on any day in excess of this daily firm quantity limitation shall be charged a base reservation and commodity rate equal to the greater of: (a) the 100% load factor equivalent of the Negotiated Fixed Monthly Base Reservation Rate and Negotiated Fixed Base Commodity Rate; and (b) the 100% load factor equivalent of the applicable maximum base reservation and commodity rates set forth in Naturals tariff, as may be revised from time to time.
BID RATE SECONDARY RECEIPT/DELIVERY POINTS
a) Capacity Without SW Option:
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Naturals tariff, and which does not include the SW Option, the bid reservation rate will apply All secondary receipt points in the zones traversed by the primary path of the Transportation Agreement including secondary receipt points to the extent permitted under the opposite leg rights provision of Section 5.5(a)(2) of the General Terms and Conditions of Naturals FERC Gas Tariff, as may be revised from time to time.
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Naturals tariff, and which does not include the SW Option, the bid reservation rate will apply only to the following secondary delivery points: The bid reservation shall apply to service provided on a firm basis to the following secondary delivery points: Subject to the provisions of the section below regarding Incremental Rate Secondary Delivery Points, the bid Monthly Base Reservation Rate shall apply to service provided on a firm basis to all pooling and storage points within the zones traversed by the primary path of the Transportation Agreement as well as to the following Market Delivery Zone points: Nicor (LOC 9258), MidAmerican (LOC 10568), PGL&C (LOC 909285), Northern Natural (LOC 900203), Northern Border (LOC 908090), Alliance (LOC 37207), ANR (LOC 906104 & 904758), Midwestern (LOC 906107 & 25400), Guardian Pipeline (LOC 40400), Panhandle (LOC 906103), IPLC (LOC 25250 & 901028) and AmerenIl (LOC 46594 & 49595 and North Shore (Pin 9254).
b) Capacity With SW Option:
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum rate set forth in Naturals tariff, and which includes the SW Option, the bid reservation rate will apply to all secondary receipt points in the zones traversed by the primary path of the Transportation Agreement including secondary receipt points to the extent permitted under the opposite leg rights provision of Section 5.5(a)(2) of the General Terms and Conditions of Naturals FERC Gas Tariff, as may be revised from time to time.
For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Naturals tariff, and which includes the SW Option, the bid reservation rate will apply only to the following secondary delivery points: The bid reservation shall apply to service provided on a firm basis to the following secondary delivery points: Subject to the provisions of the section below regarding Incremental Rate Secondary Delivery Points, the bid Monthly Base Reservation Rate shall apply to service provided on a firm basis to all pooling and storage points within the zones traversed by the primary path of the Transportation Agreement as well as to the following Market Delivery Zone points: Nicor (LOC 9258), MidAmerican (LOC 10568), PGL&C (LOC 909285), Northern Natural (LOC 900203), Northern Border (LOC 908090), Alliance (LOC 37207), ANR (LOC 906104 & 904758), Midwestern (LOC 906107 & 25400), Guardian Pipeline (LOC 40400), Panhandle (LOC 906103), IPLC (LOC 25250 & 901028) and AmerenIl (LOC 46594 & 49595 and North Shore (Pin 9254).
INCREMENTAL RATE SECONDARY DELIVERY POINTS
In addition to the bid reservation rate, for any capacity awarded to a bidder at a reservation rate which is less than the applicable maximum rate set forth in Naturals tariff, bidder shall pay Natural the following incremental volumetric daily reservation rates for all quantities transported on a firm basis on any day to the Incremental Rate Secondary Delivery Points set forth below. These incremental rates shall be subject to the applicable maximum rate set forth in Naturals tariff for service to such points, as may be revised from time to time, for SFV rate bids but not for negotiated rate bids. To the extent that bidder is awarded primary point capacity at any of the Incremental Rate Secondary Delivery Points, the specified incremental reservation rate for service to such point shall not apply.
Tier 1 Secondary Delivery Points LOC
$ 0.03/Dth.
Crossroads 10751
EnableMR Clinton 900169
Horizon Pipeline 39755/39855
Nipsco 909260
Negotiated Rate Bids:
All other incremental rate secondary delivery points not specifically set forth above under any other point tier.
For SFV rate bids, service provided on a firm basis to all other secondary delivery points not specifically set forth in this section will be provided at the applicable maximum rate set forth in Naturals FERC Gas Tariff, as may be revised from time to time, for service to such points.
CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR
AVAILABLE CAPACITY:
Bidders may submit a bid in this ROFR with or without the System-Wide service option (SW Option). The applicable maximum Tariff rates for service with and without the SW-Option are shown below:
Without SW-Option
Peak Off-Peak
Nov. Dec-Mar
$8.7592 $9.5024 $7.37
With SW-Option
$10.4296 $10.8012 $8.82
Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.
EVALUATION OF ACCEPTABLE BIDS AND CAPACITY AWARD PROCEDURES
Bid Evaluation subject to current capacity holders right to match
In accordance with Naturals Tariff, the current capacity holder may elect to match the NPV of the best bid or bids in order to retain the capacity, which is subject to the following limitation: For purposes of determining the NPV that the current capacity holder must match such NPV shall equal the lesser of: the NPV of the best acceptable bid(s); or the NPV of the maximum base tariff rate for 5 years. For acceptable bid(s) that include the System-Wide service option (SW Option), Natural shall convey a term sheet to the current capacity holder that includes an NPV for matching purposes with and without the SW Option. The current capacity holder may elect to match the bid(s) either with or without the SW Option. Natural may, but is not required to, accept any bid which reflects a discount from the applicable maximum rate.
In accordance with the provisions of Naturals Tariff, Natural will convey the best acceptable bid(s), if any to the current capacity holder, which shall include the NPV that the current capacity holder must match (as specified below) in order to retain the capacity. The current capacity holder, at its election, may match any bid(s) in either an SFV or negotiated rate form.
If the current capacity holder fails to match the best acceptable bid(s), then Natural will award capacity to bidders in this ROFR posting in accordance with the provisions of Naturals tariff, as determined below.
Bid Evaluation after current capacity holder does not exercise right to match
In comparing bids in the ROFR, the NPV of all acceptable bids received in this ROFR shall be determined in accordance with all applicable provisions of Naturals tariff, as well as the NPV evaluation methodology applicable to Initial Open Season bid evaluations posted on Naturals DART System as of the Posting Start Date. In determining the NPV of a bid, the value of any negotiated rate bid will be capped at the value of the same bid at the applicable maximum tariff rate for such service. For any bids submitted with the SW Option, the value of the SW Option shall be included in the determination of the NPV of the bid. Further, bidders may bid any term in this ROFR and the entire term of the bid shall be included in the determination of the NPV of the bid. The acceptable bid or bids that generate the highest aggregate NPV shall be the best acceptable bid(s).
CREDITWORTHINESS REQUIREMENT
All bidders must satisfy Naturals creditworthiness requirements, as stated in Section 16 of the General Terms and Conditions of Naturals FERC Gas Tariff, prior to submitting a bid. Any bid submitted which causes bidder to exceed bidders pre-determined level of creditworthiness is deemed an invalid bid. Potential bidders are encouraged to contact Naturals Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.
BID SUBMITTAL REQUIREMENTS
Bids for the available capacity must be received by Natural no later than 2:00 p.m. Central Time on the Posting End Date in order to qualify for consideration. Bids should be emailed to NGPLMARKETING@KINDERMORGAN.COM using the form of the bid sheet set forth below.
Bids must contain all of the information required by the bid sheet. Incomplete bid forms received by Natural will be deemed invalid.
Bids which contain any conditions or contingencies which are not expressly permitted by this ROFR posting will be deemed invalid.
Each bidder must indicate in its bid, as part of the required bid information, whether it is willing to accept a prorated award of its bid capacity in the event that the capacity required for all acceptable bids received exceeds the available capacity and, if so, must also indicate bidder's minimum acceptable Contract MDQ.
Natural Gas Pipeline Company of America LLC
Right of First Refusal
Form of Bid Sheet
BID FOR CAPACITY SUBJECT TO RIGHT OF FIRST REFUSAL
Bidder's Name: _____________________________ GID #__________
Date: ____________________________________________
Rate Schedule: ____________________________________________
Term Start Date: ____________________________________________
Term End Date: ____________________________________________
Contract MDQ: ____________________________________________
If Bidder will accept less than the Contract MDQ bid, specify the Minimum Acceptable Contract MDQ: ____________ Dth per day.
Primary Point MDQ:
Receipt/Delivery LOC Name LOC MDQ
__________________ _____________ ___________
Rate Form Bid (check one): SFV Rate ____Negotiated Rate____
Monthly Base Reservation Rate Without SW (per Dth of Contract MDQ):
_____ _____
Monthly Base Reservation Rate With SW (per Dth of Contract MDQ):
Is Bidder an affiliate of Natural (Y/N): _________
Bidders Address: ____________________________________________
____________________________________________
Bids for this capacity must be received by Natural before 2:00 P.M. Central Time on the Posting End Date in order to qualify for consideration. Bids should be emailed to NGPLMARKETING@KINDERMORGAN.COM. Bids are subject to the terms and conditions set forth in the applicable ROFR posting and Natural's FERC Gas Tariff.
Bidder Name: ________________________
By: _________________________________
Name: _______________________________
Title: ______________________________
Phone #/Fax #: ( )________________________(__)________________
Email: