February 20, 2018 To All Southern Natural Gas Company Shippers RE: Open Season Announced for Firm Transportation (FT)/Expansion On February 15, 2018 Southern Natural Gas Company, L.L.C. (“SNG”) in Docket No. CP17-46 received authorization from FERC to expand its system by constructing and installing a proposed interconnection with Transcontinental Gas Pipe Line (“Transco”) near the existing Jonesboro, Georgia interconnection (proposed receipt pin 50069, Transco/SNG, Fayette County, GA) to various delivery points on the SNG pipeline system (known as the “Fairburn Expansion”). As part of the Fairburn Expansion, approximately 30,000 dth/day of incremental firm transportation capacity will become available from this new interconnect to delivery locations on SNG's South Main Line, west of SNG's Thomaston compressor station, including limited deliveries to the South Georgia Lateral. Of this quantity, approximately 10,000 dth/day is available as far east as the AGL-SNG West Macon Area Point (pin 940055), east of the Thomaston Compressor Station.
This open season is being made to solicit bids for the aforementioned 30,000 dth/day. The capacity available to be awarded may not be available in the same increments to all locations along SNG's South Main Line. In particular, less capacity will be available and the capacity will telescope downward for delivery pins east of SNG's Thomaston compressor station, and may not be available to particular laterals or delivery pins. Southern reserves the right to reject any bids at less than maximum tariff rate.
The incremental firm transportation capacity is expected to become available no earlier than October 1, 2018. The actual start date shall be subject to receipt of regulatory approvals to place in service the facilities associated with the Fairburn Expansion. Any bid with a start date earlier than October 1, 2018 will be rejected
A portion of this capacity is subject to prearranged bids.
This open season will commence as of the date and time this notice is posted and end at 10:00 a.m. CCT on March 6, 2018.
Shippers may submit bids to Southern for FT service by completing a standard transportation request form for FT service and 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. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=SNGD
On the request form, Shippers should indicate the term (start and end date within the date range being offered), FT quantity (in dth/day), rate (monthly reservation charge per dth requested), and delivery pins being bid. The receipt pin will be the proposed interconnection with Transco described above (proposed pin 50069). Only valid requests for service under the terms of SNG's Tariff will be considered. All bids will be considered binding and, if accepted, Southern shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid.
SNG will award the capacity from bids received during the open season on the basis of net present value (“NPV”) determined with reference to the rate, quantity, term and the date the service is to commence. Please note that offers to extend the term of existing firm contracts, to increase discounted rates, or to bid on supplemental capacity will not be utilized as consideration in calculation of the NPV in this open season.
In calculating the net present value, SNG will use a discounted cash flow factor of 10.24%. SNG will have the right to aggregate bids in a manner that generates the highest net present value to SNG. 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 quantity of capacity they are willing to take in the event the full contract quantity of the bid is not available or if SNG must prorate the bids. Shippers should also indicate in their bids if their bid is contingent upon being awarded the full term of the bid or if they will accept a partial term. If a bid is submitted in excess of the available capacity and the bids must be prorated, the bid in excess of the available capacity will be prorated as though the bidder bid for the maximum available capacity to be awarded. SNG will take no longer than ten (10) business days to award the bids. This open season is subject to the terms of Section 2.1 (b) of the General Terms and Conditions of SNG Tariff. If you have any questions regarding the Open Season, please contact your Account Manager or Darryl Outlaw at 205-325-7421. SNG Marketing