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TSP/TSP Name:  938939154-TRANSCOLORADO GAS TRANS CO LLC Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  CAPACITY FOR SALE
Notice Eff Date/Time:  11/06/2019 11:52:36AM Notice End Date/Time:  11/20/2019 9:00:00am
Post Date/Time:  11/6/2019 11:52:36 AM Notice ID: 119006
Reqrd Rsp:  5 Rsp Date: 
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  TW/EPNG Blanco to North End Del Pts OS
Notice Text:

TW Blanco and EPNG Blanco to North End Delivery Points

Open Season Notice of Available Firm Capacity on TransColorado (Transporter)

Bid Deadline – 10:00 AM Mountain Time (MT), November 19th, 2019

Portable Document Format (.pdf) file of Open Season: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=TCP&parent=1600

Due to the expiration of existing Firm Transportation Service Agreements (FTSAs), Transporter is conducting a binding Open Season for capacity as outlined below.

Rate Schedule:

FT

Volume Maximum Delivery Quantity (“MDQ”)::

50,000 Dth/day  

Primary Receipt Point(s):

TW Blanco (36106) and EPNG Blanco (36105)

Primary Delivery Point(s):

WIC Yellow Jacket Greasewood (42223)

Parties that are interested in capacity at and from other primary receipt points or at and to other primary delivery points, or for other periods, should contact their service representatives or any of the individuals listed below.

Secondary Receipt Point(s):

The capacity offered in this Open Season will include the right to utilize the following points on a secondary basis at the same contracted rate:

Williams Greasewood (36101), Exxon Greasewood (40237), QPC Greasewood (36100), REX Love Ranch (42235), EP Blanco (36105), TW Blanco (36106), CIG Dark Canyon (41781), White River Ryan Gulch (43886)

Secondary Delivery Point(s):

The capacity offered in this Open Season will include the right to utilize the following points on a secondary basis at the same contracted rate:

TW Blanco (36106), EP Blanco (36105), Rex Love Ranch (42235), QPC Greasewood (36100), CIG Dark Canyon (41781), and WIC Yellow Jacket (42223).

Recommended Term:

Transporter recommends that bids have a proposed start date of from December 1, 2019 with no recommended end date (although Transporter reserves the right to reject any bid which fails to comport with the provisions of this open season).

Open Season Start:

11:00 AM MST, November 6, 2019

Open Season End:

10:00 AM MST, November 19, 2019

Award Notification Date:

2:00 PM MST, November 20, 2019

Bid Sheet:

Email attached Bid Sheet to KMWestBids@KinderMorgan.com

NOTE:  Transporter will rely upon the time the bid is received to determine whether the bid was timely.  Bids that are received (as determined by the time stamp on the Transporter's email inbox) after the end date and time listed above will be considered invalid bids and will not be eligible for an award of capacity in this Open Season.  Transporter recommends that bids be submitted well in advance of the closing time listed above to minimize the risk that any email delay could cause a bid to be excluded from consideration.

General Open Season Requirements:

Bids must include the bidding party's name, Open Season Name (‘TW Blanco and EPNG Blanco to North End Delivery Points'), quantity, term, and rate.

 

By submitting a bid, the bidding party certifies that:

(a)  All information contained in the bid is complete and accurate.

(b)  It satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff including.

(c)  The person submitting the bid has full authority to bind the bidding party.

 

The bid rate must be presented as: (a) the reservation rate per Dth/month, (b) the reservation rate per Dth/day (which will be converted to a Dth/month rate for the Firm Transportation Service Agreement (FTSA) by rounding to the fourth decimal the result of the formula (daily rate x 365)/12), or (c) the maximum tariff rate.

 

There will be no contractual ROFR offered with this capacity.

 

In addition to the bid rate, each bidding party shall be subject to the applicable maximum commodity rate and maximum commodity surcharges, all other maximum rates, charges and surcharges, including ACA, Fuel and L&U, and any other authorized surcharges assessed under the applicable Rate Schedule of Transporter's FERC Gas Tariff as may change from time to time.  This includes incremental lateral charges and any third party charges resulting from the use of capacity that Transporter may hold on other pipelines.

 

Transporter reserves the right to reject negotiated rate bids, bids that have rates less than the maximum recourse rate, bids stated as the dollar equivalent of the current maximum recourse rate, bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms or are inconsistent with the provisions of Transporter's FERC Gas Tariff.  Transporter also reserves the right to reject bids for quantities that are not for the same quantity for the duration of the term.

 

Transporter also reserves the right to seek clarification of bids that have what appears to be an obvious error.  Any clarification by bidders must be provided in writing and within the time requested by Transporter.  Such clarifications shall be incorporated as part of the binding bid submitted by the bidder.

 

Transporter notes that a bidding party that is awarded capacity may be required to execute multiple contracts if the bidding party bids for varying MDQ such that the MDQ will not vary in each contract.

 

Transporter notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an Open Season for capacity in which the pipeline may allocate capacity on a pro rata basis.  It appears to Transporter that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order.

 

Creditworthiness Requirements:

 

The successful bidder(s) must satisfy the creditworthiness requirements of Transporter's FERC Gas Tariff.  Bidders that fail to satisfy such creditworthiness requirements within a reasonable time will have their capacity award withdrawn.  Transporter will treat the financial statements provided by bidders as confidential.

 

Execution of FTSA:

 

Each successful bidder and Transporter shall enter into and execute an FTSA reflecting the terms of its bid as awarded by Transporter.  All successful bidders shall execute and return the FTSA within the earlier of the day before the first day of the term of firm transportation service in the bid as awarded by Transporter or twenty (20) business days following the day Transporter tenders the FTSA to the bidder (“Execution Date”).  If a successful bidder fails to fully execute and return the FTSA on or before the Execution Date, then Transporter reserves the right to cancel the successful bidder's binding bid without prejudice as to Transporter's right to seek any and all permitted remedies as a result of the breach of the bid.  The FTSA will be in the form contained in Transporter's FERC Gas Tariff.  Transporter and any successful bidder may mutually agree to enter into and execute more than one FTSA that together reflect all the terms of the successful bid as awarded by Transporter.

 

Evaluation Criteria:

 

If Transporter receives acceptable bids for capacity in excess of the actual amount of available capacity, then Transporter will award and/or allocate the capacity in a manner that yields the highest total PV as calculated below. In determining which bid(s) yield the highest total PV, Transporter reserves the right to combine multiple bids, in whole or in part, in a manner that results in a total PV of the combined bids that exceeds the highest PV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept an allocation of capacity).

 

PV will be calculated as the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term.

 

The PV for each month will be calculated as follows:

 

PV = (R X Q)/((1+i) to the power of n)

Where:

R = the monthly reservation bid rate

Q = the monthly bid quantity

i = the monthly discount rate of 0.4517% (which is the annual discount rate of 5.42% divided by 12).

n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on).

 

Contact Information:

 

Questions concerning this Open Season should be directed to:

 

Cory Chalack              (719) 520-3769

Damon McEnaney     (719) 520-4472

John Driscoll               (719) 520-4471

Mark Iverson             (719) 520-4587

Randy Barton            (719) 520-4667

Robin Janes              (719) 667-7555

Thania Delgado         (719) 520-4482

Evelyn Spencer          (719) 520-4753

 

 

Open Season Bid Sheet

(See next page)

 


Open Season Binding Bid Sheet

TW Blanco and EPNG Blanco to North End Delivery Points

Email Bid To: KMWestBids@KinderMorgan.com

  1. Shipper Information:

                        Legal Name of Bidder:__________________________

                        Name of Requesting Party:_______________________

                        Title of Requesting Party:________________________

                        DUNS Number:________________________________­

                        Phone:_______________________________________

 

B.                   Capacity:

 

Form of Service (e.g. FT): ________________

 

Requested Term Start Date:                              

 

Requested Term End Date:                               

 

         Will you accept an allocation of capacity if necessary              Yes               No

 

Receipt Point(s)

Receipt Point Quantity (Dth/day)

Delivery Point(s)

Delivery Point Quantity (Dth/day)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*The sum of the delivery point quantities at the primary delivery location(s) must equal the MDQ.

C. Reservation Rate (select one):

  Maximum Recourse Rate

 

  Discounted Recourse Rate:  $ ________ per Dth per _____ (select Month or Day)

 

  Negotiated Rate:  $ ________ per Dth per _____ (select Month or Day)

 

 

In addition to the bid rate, successful bidders will be subject to the applicable maximum commodity rate and  maximum commodity surcharges, all other maximum rates, charges and surcharges, including ACA, Fuel and L&U, and any other authorized surcharges assessed under the applicable Rate Schedule of Transporter's FERC Gas Tariff as may change from time to time. This includes incremental lateral charges and any third party charges resulting from the use of capacity that Transporter may hold on other pipelines.

 

*By submitting this binding bid to Transporter, the bidding party certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.

 

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