April 7, 2017
Re: ROFR Open Season Announced for Firm Transportation
This is to announce an open season for bids for 527 dth/day of FT capacity on
Southern's south main system in Zone 1 that will become available effective
September 1, 2017. This capacity is subject to a right of first refusal
("ROFR") by the present capacity holder under Section 20 of the
General Terms and Conditions of Southern's FERC Gas Tariff. The capacity is
available from the SNG interconnect with High Point at Toca (RP640000) to various
points along Southern's south system as far east as Meridian, Ms.
The open season will commence as of the date and time this notice is posted and
will end at 11:00 A.M. CCT on April 24, 2017. Shippers may submit bids to
Southern for FT service by completing a standard transportation request form
for FT service and including all of the elements listed below, then faxing it
to the attention of Darryl Outlaw at (205) 325-3587 or emailing it to FTServiceRequest@kindermorgan.com.
Please call your account manager if you need an FT Request Form or you can
paste the following link in your browser and then click on SNG Service Request.
On the request form,
Shippers must include the term (start and end date), quantity (in dth/day), rate,
delivery pins and receipt pins being requested. The receipt and delivery pins
requested should be in the path or geographic vicinity of the posted capacity. Any
delivery pin requested must be in Zone 1. The requested term start date can be
no earlier than September 1, 2017, and no later than December 1, 2017. The
capacity available is year round capacity and while bidders may bid for a term
of less than one year, the capacity cannot be divided into multi-year seasonal
This ROFR open season does not apply to any delivery pin or receipt pin shifts.
The capacity available to be awarded may not be available in the same
increments to all locations of Southern's system and may not be available along
particular laterals or at certain delivery or receipt pins. Southern does not
propose to build any facilities in conjunction with the award of the capacity
since it is subject to ROFR rights, so bids that require Southern to construct
facilities to provide the service requested will be rejected. Also, because of
the ROFR process, conditional or contingent bids or bids in excess of the total
available capacity set forth above will not be accepted.
Southern reserves the right to not accept bids at less than 100% of the maximum
Tariff rate. Only valid requests for service under the terms of Southern's
Tariff will be considered. All bids will be considered binding and, if awarded,
Southern shall have the right to charge the winning bidder for the capacity
awarded under the terms of the bid.
After the open season is complete, Southern will determine the best bid(s) that
it is willing to accept and notify the existing capacity holder. The existing
capacity holder will have fifteen (15) calendar days in which to match the
winning bid(s) on the capacity (term and rate). If the existing capacity holder
elects not to match the bid, then the winning bidder(s) will be notified after
the ROFR period has expired. If the existing capacity holder fails to match the
best bid(s), or if no acceptable bids are received and Southern and the
existing capacity holder do not reach agreement on the extension of such service,
said package of capacity shall be subject to pregranted abandonment on the
effective date set forth in the first paragraph.
Subject to the completion
of the ROFR process set forth above, and depending on whether or not the
existing shippers elect to retain their capacity, Southern will award the
capacity from bids received during the open season on the basis of net present
value determined with reference to the rate, quantity, term and the dates the
service is to commence and end. Requests for additional firm, term extensions,
or increases to discounted rates will not be considered in this open season. In
calculating the net present value, Southern will use a discounted cash flow
factor of 10.24%. Southern will have the right to aggregate bids in a manner that
generates the highest net present value to Southern.
Comparable winning bids that cannot be awarded in full will be awarded on a pro
rata basis. Shippers should indicate in their bids the minimum amount of
capacity they are willing to take in the event the full contract quantity of
the bid is not available or if Southern must prorate the bids.
This open season is subject to the terms of Section 20 of the General Terms and
Conditions of Southern's Tariff.
If you have any questions regarding the Open Season, please contact your