CIG Mainline Open Season
ROFR Open Season for Capacity from an
Expiring Firm Contract on
Colorado Interstate Gas Company, L.L.C. (“Transporter”)
Bid Deadline – Thursday, February 11 at
2:00 PM Mountain Time
Portable Document Format (.pdf) file of Open Season: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=CIG&parent=1600
Due to the expiration of
an existing Firm Transportation Service Agreement (“FTSA”), Transporter is
conducting a binding Open Season for capacity as outlined below. The capacity
offered under this posting is subject to a Right-of-First-Refusal (“ROFR”) by
an existing customer who is the current holder of this firm capacity.
800212 (DOV) DOVER METER STATION -
800284 (GRZ) GRIZZLY METER STATION -
892265 (ANA) ANABUTTES - 500 Dth/day
800282 (GRN) GREEN RIVER NPC -
800335 (KAN) KANDA SWEETWATER -
In this ROFR 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 Capacity
of the existing FTSA. Parties that are interested in capacity at and from
other primary receipt points or at and to other primary delivery points
should contact their service representatives or any of the individuals listed
Maximum Reservation and Commodity
April 1, 2021
Open Season Start:
1/12/2021 at 10:00
AM Mountain Time
Open Season End:
2:00 PM Mountain Time
3/1/2021 at 2:00
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.
Matching Rights of Existing Customer
If Transporter accepts the highest or best bid(s), the existing customer who currently holds this capacity will have ten (10) business days to match any bid(s) accepted by Transporter. The existing customer may retain all or a portion of the capacity included in one or more of the acceptable bids by matching the term and rate of that bid(s) up to the maximum applicable recourse rate reflected in the existing contract pursuant to General Terms and Conditions (“GT&C”) Section 4 of Transporter's FERC Gas Tariff. If there are no bids or no acceptable bids submitted, the existing customer may retain the capacity by extension of the expiring agreement provided the existing customer is willing to pay the maximum applicable recourse rate, unless Transporter and existing customer enter into a new FTSA providing otherwise.
Bids must include the bidding party's name, Open
Season Name (“CIG Mainline”), quantity, term, and rate.
By submitting a bid, the bidding party certifies
All information contained in the bid is complete and accurate.
It satisfies, or will be able to satisfy, all the requirements of Transporter's
FERC Gas Tariff.
The person submitting the bid has full authority to bind the bidding
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.
There will be no contractual right of first refusal
(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 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 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
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.
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 or the current customer if
it chooses to match as described above (collectively referred to as “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 Successful 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 or match as
awarded by Transporter.
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
R = the monthly reservation bid
Q = the monthly bid quantity
i = the monthly discount rate of 0.2708% (which is the annual discount rate of 3.25% 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).
Questions concerning this Open Season should be
Cory Chalack (719) 520-3769
Damon McEnaney (719) 520-4472
Evelyn Spencer (719) 520-4753
John Driscoll (719) 520-4471
Randy Barton (719) 520-4667
Robin Janes (719) 667-7555
Thania Delgado (719) 520-4482
Season Bid Sheet
Open Season Binding Bid Sheet
Email Bid To: KMWestBids@KinderMorgan.com
Legal Name of
Name of Requesting
Title of Requesting
Rate Schedule: TF-1
Requested Term End
Will you accept an
allocation of capacity if necessary
Receipt Point Quantity (Dth/day)
Delivery Point Quantity (Dth/day)
*The sum of the delivery point quantities at the primary delivery location(s)
must equal the MDQ.
Rate (select one):
Maximum Recourse Rate
Discounted Recourse Rate: $ _____ per Dth per month or
$ _____ per Dth per day
Negotiated Rate: $ _____ per Dth per month or
$ _____ per Dth per day
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.
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.