CIG King to Mid-Con Open Season
Open Season Notice of Firm Capacity
on Colorado Interstate Gas Company, L.L.C. (Transporter)
Bid Deadline – 2:00 PM Mountain Time (MT), October 7, 2020
Portable Document Format (.pdf) file of Open Season:
CIG: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=CIG&parent=1600
Transporter is conducting a binding Open Season as explained below.
TF-1
Nov. 1, 2020 – Oct. 31, 2021
27,755 Dth/day from the Primary Receipt Point 291665 King to the Primary Delivery Point 800361 Lakin PEPL
OR
13,226 Dth/day from the Primary Point 291665 King to the Primary Delivery Points 800078 Beaver or 800089 Big Blue
Beginning Nov. 1, 2021
59,174 Dth/day from the Primary Receipt Point 291665 King to the Primary Delivery Points 800361 Lakin PEPL, 800078 Beaver or 800089 Big Blue
Award of capacity to a bidder may result in the execution of multiple agreements.
In this Open Season, Transporter will consider alternative primary receipt and/or delivery points (subject to available capacity) in conjunction with some or all of the Primary Receipt-to-Delivery Flow Path for the Primary Receipt and Delivery Points specified earlier. 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.
Transporter will also consider bids to and from expansion facilities that are not currently in-service. For bids associated with proposed expansion facilities, Transporter will use the Requested Term Start Date from the Open Season Binding Bid Sheet for purposes of calculating the PV (as defined herein) for awards of capacity and any resulting firm transportation agreement. An alternative existing Primary Receipt or Delivery Point currently in-service with sufficient capacity must be designated for use in the firm transportation agreement in the event that the in-service date of the expansion facilities occurs later than the awarded start date.
September 10, 2020 at 2:00 PM Mountain Time
October 7, 2020 at 2:00 PM Mountain Time
October 9, 2020 at 4:00 PM Mountain Time
To bid, complete the attached bid sheet and email it to KMWestBids@KinderMorgan.com. Transporter reserves the right to reject any bid which fails to comport with the provisions of this open season
NOTE: Transporter will rely upon the time an emailed bid is received to determine whether a bid is timely. Bids that are received after the end date and time listed above (as determined by the time stamp on Transporter's email inbox) 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.
Bids must include the bidding party's name, Open Season Name (“CIG King to Mid-Con”), 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.
(c) The person submitting the bid has full authority to bind the bidding party.
Bids submitted in this Open Season will constitute a binding irrevocable offer by the bidding party to contract for capacity. The award of the capacity in this open season will be an acceptance of the offer and the parties shall be contractually bound at that time.
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 monthly rate by multiplying the daily rate times 365 and dividing the result by 12, rounded to the fourth decimal place), or (c) the maximum tariff rate.
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 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 or this Open Season. Transporter also reserves the right to reject bids that do not reflect the same quantity for the duration of the term. Transporter will consider, but not necessarily accept, negotiated reservation rate bids.
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 seek any and all permitted remedies as a result of the successful bidder's failure to execute the FTSA. 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 0.2858% (which is the annual discount rate of 3.43% 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
Evelyn Spencer (719) 520-4753
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
Tony Sanabria (719) 667-7582
Greg Ruben (719) 520-4870
Open Season Bid Sheet
(See next page)
Open Season Binding Bid Sheet
**CIG King to Mid-Con **
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of Bidder:
Name of Requesting Party:
Title of Requesting Party:
DUNS Number:
Phone:
B. Capacity Bid:
Form of Service: TF-1
Requested Term Start Date:
Requested Term End Date:
Maximum Delivery Quantity: Dth/day
Will you accept a pro rata allocation of capacity if necessary Yes No
For bids with expansion facilities as either a Primary Receipt or Delivery Point, the designated alternative existing Primary Receipt or Delivery point currently in-service is: __________________________________
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 Rate: $ _____ per Dth per month or $ _____ per Dth per day
Negotiated Rate: $ _____ per Dth per month or $ _____ per Dth per day
Reservation rates bid as a daily rate (i.e., a rate per Dth per day) will be converted to a monthly rate by multiplying the daily rate times 365 and dividing the result by 12, rounded to the fourth decimal place.
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.