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TSP/TSP Name:  6931794-NATURAL GAS PIPELINE CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  06/12/2019 8:42:27AM Notice End Date/Time:  07/12/2019 9:00:00am
Post Date/Time:  6/12/2019 8:42:27 AM Notice ID: 40163
Reqrd Rsp:  1 Rsp Date:  06/12/2019
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  IOS1906-1 MIDCONTINENT TO MIDCONTINENT
Notice Text:
TEXOK to MARKET

INITIAL OPEN SEASON – IOS1906-1

MIDCONTINENT TO MIDCONTINENT

FTS TRANSPORTATION

AVAILABLE WITH SW OPTION

 

In this open season, Natural is soliciting bids for firm transportation capacity.  This is an Initial Open Season (IOS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions of Natural's Tariff.

 

CAPACITY AVAILABLE (Dth./day)/TERM 

----------------------------------

15,000 Dth./day of forward-haul capacity in Segment 3 of the Midcontinent Zone is available from June 18, 2019 through October 31, 2019. 

 

3,000 Dth./day of forward-haul capacity in Segment 3 of the Midcontinent Zone is available beginning June 18, 2019.

 

50,000 Dth./day of forward-haul capacity in Segment 4 of the Midcontinent Zone is available beginning November 1, 2019.

 

12,750 Dth./day of forward-haul capacity in Segment 5 of the Midcontinent Zone is available beginning June 18, 2019. 

 

The capacity in this IOS is only available to those Bidders under an existing firm transportation contract with primary receipt point capacity in the Midcontinent Receipt Zone.  Such bidders may bid a new receipt point in the Segments listed above to lengthen their primary path subject to available capacity, provided that the Bidder is willing to pay the applicable maximum tariff rate for service from such point. 

 

AVAILABLE RECEIPT POINTS

-------------------------

The following receipt point (s) may be utilized for bids in this IOS.  The point(s) listed below have capacity available equivalent to the corresponding segment capacity available in this IOS.

 

LOC #       Primary Receipt Point Name                          Segment

----        ---------------------------                         -------

 5383       EMP-EOIT/NGPL Corn Washita                             3

 3000       OneokGT/NGPL Woodward                                  4

10655       Cimarex/NGPL Rocky #1 Washita                          5

      

Bidders interested in other primary receipt points should contact their Account Director at Natural prior to bid submission.

 

AVAILABLE DELIVERY POINTS

-------------------------

There are no available delivery points for this IOS.

 

BID PARAMETERS

--------------

POSTING and BIDDING PERIOD: June 12, 2019 – June 17, 2019

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m.

Central Time on June 17, 2019

Email Bids to ngplmarketing@kindermorgan.com

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 5.45%,

discounted to June 18, 2019 which shall be the Discount Date as that term is used in this posting


BID REQUIREMENTS AND IOS TERMS AND CONDITIONS

---------------------------------------------

 

OPTIONAL SERVICES

-----------------

A bid may also include the SW (system-wide) service option, at Bidder's election. All Base Reservation Rates applicable to the SW Option will be included in the guaranteed revenue stream considered for bid evaluation purposes, to the extent applicable to Bidder's bid. The optional services of LN (late nominations) and NB (no balancing) are not applicable to the evaluation of this capacity included in this IOS, and therefore, any charges for such service options will not be taken into account for bid evaluation purposes.   

 

BID RATE SECONDARY RECEIPT/DELIVERY POINTS

------------------------------------------  

The bid reservation rate will apply to all secondary receipt and delivery points in the zones traversed by the primary path.

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM MIDCONTINENT TO MIDCONTINENT:

-------------------------------------------

Without SW Option:

 Peak     Off-Peak  

 $3.79    $3.79     

 

With SW Option:

 Peak     Off-Peak       

 $7.945   $7.03  

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

EXTENDED CAPACITY TERMS

-----------------------

Bidders may locate firm pipeline segment capacity availability information, for 15 months following the month of this posting, on Natural's internet website at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. This website also contains information on firm receipt and delivery point capacity availability for the same 15 month period.  Any bid submitted for capacity extending beyond this 15 month period will be subject to Natural's determination that sufficient capacity is available beyond the 15 month period to permit Natural to accept any such bid.  Bidders interested in a bid term extending beyond the 15 month period should therefore contact their Account Director at Natural prior to bid submission in order to determine whether the desired capacity is available.

 

FFTS CAPACITY AVAILABLE

-----------------------

Any capacity which is available for bid under Rate Schedule FTS is also available for bid under Rate Schedule FFTS.  Bidders desiring to bid on FFTS capacity should contact their Natural Account Director for a bid form.

 

 

RESERVE PRICE MATRIX

--------------------

The Reserve Price established for this IOS is the applicable maximum tariff rate for the path and term bid. 

 

 

 

BID REQUIREMENTS

----------------

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.

 

All bids must be submitted in an SFV rate form. Bids in the form of a Negotiated Rate or Negotiated Rate Formula will not be valid. 

 

CREDITWORTHINESS REQUIREMENT

----------------------------

All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the General Terms and Conditions of Natural's FERC Gas 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

--------------------------------

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, other than discountable third party surcharges which are covered in the following paragraph, at the applicable maximum rate contained in Natural's Gas FERC Tariff, as may be revised from time to time. 

 

From time to time, certain reservation and/or commodity surcharges may be approved by the FERC for inclusion in Natural's FERC Gas Tariff which Natural is: (i) required to collect from shippers and remit to the FERC or to another third party; and (ii) permitted to discount the amount of such surcharge from the applicable maximum rate set forth in Natural's FERC Gas Tariff ("Discountable Third Party Surcharges").  With respect to any capacity award hereunder, Natural shall discount any particular Discountable Third Party Surcharge to the maximum extent permitted under the provisions of Natural's FERC Gas Tariff.  A Bidder awarded capacity herein shall only be responsible for payment to Natural of any portion of any such applicable Discountable Third Party Surcharge which Natural is not permitted to discount.

 

FUEL AND GLU CHARGES

--------------------

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 FERC Gas Tariff, as may be revised from time to time. 

 

Quantity Limitations/

AUTHORIZED OVERRUN SERVICE

-------------------------

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 Bidder's awarded Contract MDQ. Firm deliveries made on any day in excess of the applicable contract MDQ, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural's FERC Gas 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 FERC Gas Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

----------------

Advance payments will not increase the evaluation of any bid. 

 

OBLIGATION TO AWARD CAPACITY

----------------------------

Natural is not obligated to award firm capacity based on the following types of bids pursuant to its Tariff (Section 5.1(d)(4):

(1)     on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (winter only, e.g.)); and

(2)     any bid for a term which is not continuous from the commencement of service date to the termination of service date reflected in the bid.

 

BID EVALUATION METHODOLOGY

--------------------------

All bids for this IOS will be evaluated using the NPV formula which is posted on Natural's Electronic Bulletin Board (EBB) on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes.  Natural's EBB may be accessed via the Interactive Web at: http://pipeline.kindermorgan.com The NPV formula for evaluating bids was posted on May 30, 2019, 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

--------------------------------------------------------

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 FERC Gas Tariff at Section 5.1(d)(6) of the General Terms and Conditions.

 

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  ____________________   IOS1906-1

 

BIDDER/SHIPPER NAME

_________________________________________________

 

SERVICE TYPE – FTS     

 

Contract MDQ __________

 

Bid includes SW Option Yes_____ No_____

 

Existing Contract Number:  ______________

 

Existing Contract Rate: 

                                       PEAK              OFF-PEAK

 

                                      ________           ________

 

                                                       

                                    

If No SW Option:                       PEAK              OFF-PEAK

 

BID MONTHLY BASE RESERVATION RATE     MAX RATE           MAX RATE          

 

(No SW Option)                        _________           _________

 

              

If SW Option:                        PEAK                OFF-PEAK

 

BID MONTHLY BASE RESERVATION RATE

 

(SW Option)                           ________           ________

 

 

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                       POINT NAME                 LOC         MDQ

 

EXISTING RECEIPT(S) __________________________   _________   _________

 

                     __________________________   _________   _________

 

                     __________________________   _________   _________

 

BID RECEIPT(S) __________________________   _________   _________

 

                     __________________________   _________   _________  

 

                     __________________________   _________   _________

 

                     __________________________   _________   _________

 

 

If Bidder will accept less than the Contract MDQ bid, state

Minimum Acceptable MDQ _________________

 

 

 

________________________________  ___________________________

              NAME                             TITLE

 

________________________________

              DATE

 

Please Email bids to NGPLMARKETING@KINDERMORGAN.COM

 

 

 

 

 

 

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