OPEN SEASON NOTICE FOR

TOTEM ENHANCED STORAGE DELIVERABILITY SERVICE

on Colorado Interstate Gas Company, L.L.C. (TRANSPORTER)

Bid Deadline: October 5, 2023, at 2:00 p.m., Mountain Time (“MT”)

Portable Document Format (.pdf) File of Open Season:

CIG: https://pipeline2.kindermorgan.com/PortalWeb/PortalDocs.aspx?code=CIG&parent=1600

Colorado Interstate Gas Company, L.L.C. (“Transporter”) is pleased to announce the commencement of an Open Season for enhanced early-season storage withdrawal deliverability from Totem Storage.

Description of the Project and Service:

Subject to the conditions described in this Open Season, including receipt of all necessary governmental approvals and sufficient shipper commitments to economically justify the project, Transporter plans to modify its Totem Storage facilities to create up to 53,700 Dth per day of additional early-season storage withdrawal deliverability (at the current ATC Factor^[1] of 1,074 Btu) for deliveries of the quantities of gas to the Primary Points of Delivery within the pressures set forth in the table below (the “Totem Enhanced Storage Deliverability Service”). The project will require, among other things, that Transporter drill six new storage wells and inject 1 Bcf of additional base gas into the Totem Storage formation (over two injection periods). The proposed new Totem Enhanced Storage Deliverability Service will be provided pursuant to a new rate schedule that will become a part of Transporter's FERC Gas Tariff, Second Revised Volume No. 1, as amended from time to time (the “Tariff”).

Eligible Bidder:

No new storage capacity is available in this Open Season, and no reductions in a current shipper's Totem Maximum Available Capacity, Maximum Daily Withdrawal Quantity, Maximum Delivery Quantity, or Maximum Daily Injection Quantity will be granted in connection with this Open Season. Consequently, participation in this Open Season is limited to existing Rate Schedule FS-T or Rate Schedule TSB-T contract holders.

Rate:

Transporter is offering the Totem Enhanced Storage Deliverability Service at the maximum recourse rate and anticipates that the initial maximum recourse rate for the new service will be $32.3186 per Dth per month.^[3] This rate will be updated for all actual costs in connection with Transporter's next Section 4 rate case with FERC.

In addition to the maximum recourse rate, the successful bidder shall pay any applicable commodity charges contained (or to be contained) in the Tariff, which may include but not be limited to ACA surcharges, fuel and lost and unaccounted-for gas charges, and any other surcharges which are (a) approved by the FERC from time to time, including in or pursuant to any subsequent filing, and/or (b) authorized by the Tariff from time to time.

If the In-Service Date (defined below) occurs on any date other than the first day of a month, then the successful bidder shall pay Transporter a prorated share of the monthly reservation rate based on the number of days in the month on and after the date that follows the In-Service Date divided by the total number of days in the month.

Term:

The Totem Enhanced Storage Deliverability Service, other than base Gas injection, is expected to commence as early as February 1, 2026. The actual date the project facilities are completed and ready for service and Transporter is authorized to begin providing the Totem Enhanced Storage Deliverability Service is referred to herein as the “In-Service Date.” Qualifying bids must include a minimum term of at least 14 years and 3 months.

General Open Season Requirements:

To bid, complete the attached bid sheet and e-mail it to KMWestBids@KinderMorgan.com on or before the Open Season End Date.

Open Season Start Date:         September 21, 2023, at 2:00 p.m. MT

Open Season End Date:          October 5, 2023, at 2:00 p.m. MT

Award Notification Deadline: October 6, 2023, at 4:00 p.m. MT

Transporter will rely upon the time an e-mailed bid is received to determine whether a bid is timely. Bids that are received after the Open Season End Date (as determined by the time stamp on Transporter's e-mail inbox) will be considered invalid bids and will not be eligible for an award in this Open Season. Transporter recommends that bids be submitted well in advance of the Open Season End Date to minimize the risk that any e-mail delay could cause a bid to be excluded from consideration.

Bid sheets must include the bidder's name, the name of this Open Season (i.e., “Totem Enhanced Storage Deliverability Service Open Season”), the quantity for each Primary Point of Delivery, the term, and the rate.

By submitting a bid sheet, a bidder certifies that: (a) all information contained in its bid sheet is complete, true, and accurate in all respects; (b) it satisfies, or will be able to satisfy, all the requirements of the Tariff and the requirements of this Open Season; and (c) the person submitting the bid sheet has full authority to bind the bidder.

A bidder may have only one bid sheet pending for evaluation at a time in this Open Season. A submitted bid sheet for this Open Season, however, may be withdrawn by providing written notice of withdrawal to Transporter prior to the Open Season End Date and using the same process as submitting bid sheets as described above. Transporter will use the time and date stamp on Transporter's e-mail box to determine a timely withdrawal. Once a submitted bid sheet is withdrawn, another subsequent bid sheet may be submitted by the same bidder if and only if the subsequent bid is at a higher present value (“PV”). Any subsequent bid with a PV equal to or lower than the withdrawn bid will be considered invalid.

Bids submitted in this Open Season on or before the Open Season End Date that have not been properly withdrawn or considered invalid will constitute a binding irrevocable offer by the bidder to contract for early-season storage withdrawal deliverability. The award of the early-season storage withdrawal deliverability in this Open Season will be an acceptance of the offer and the parties shall be contractually bound at that time.

Transporter reserves the right to reject bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms, or are inconsistent with the provisions of the Tariff or this Open Season. Transporter will not consider bids that reflect varying quantities and, accordingly, Transporter also reserves the right to reject bids that do not reflect the same quantity for the duration of the term.

Transporter reserves the right to seek clarification of any bid (including, without limitation, the rate, quantity, term, or delivery point(s)) but shall not be required to do so. To be considered, any responding 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 and, in the case of conflict with the earlier submitted binding bid, the timely submitted written clarification shall control.

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. The restrictions imposed by FERC Order No. 894 may be applicable in this Open Season and Transporter recommends that potential bidders review and adhere to the requirements of that FERC Order.

Creditworthiness Requirements:

Successful bidder(s) must demonstrate, and maintain throughout the term of the applicable Firm Service Agreement (the “Agreement”), satisfaction of creditworthiness in the manner set forth below:

(a)        If a successful bidder is rated by Standard & Poor's Corporation (“S&P”) and/or Moody's Investor Service (“Moody's”), then such bidder shall be deemed creditworthy by Transporter if: (i) the bidder's senior unsecured debt securities are rated at least BBB- by S&P or Baa3 by Moody's (in the event the bidder is rated differently by multiple agencies, the lowest rating shall be used in making such determination); and (ii) the bidder is not under review for possible downgrade by S&P and/or Moody's to a level below that set forth in subpart (i) of this paragraph (a).

(b)        If at any time prior to or during the term of any Agreement executed in connection with this Open Season, a successful bidder's S&P or Moody's rating falls below the levels described above, or such bidder becomes unrated or otherwise fails to satisfy the requirements of this paragraph (a), then for the time period that the bidder's ratings are below that level or a successful bidder is unrated or is otherwise unable to satisfy the requirements of this paragraph (a), such bidder shall satisfy its creditworthiness obligation by providing one of the forms of credit support described in paragraph (b) below. If a successful bidder subsequently becomes able to satisfy the S&P or and Moody's rating levels described above, the bidder may immediately satisfy its creditworthiness obligations in the manner provided in this paragraph (a).

(c)        If at any time and from time to time a successful bidder is unable to satisfy its creditworthiness obligations in the manner set forth in paragraph (a) above, then bidder shall satisfy its creditworthiness obligations by providing and maintaining, at its option: (i) an irrevocable, unconditional guarantee of its obligations in connection with this Open Season, and any related Agreement executed in connection with this Open Season, reasonably acceptable to Transporter, and issued by another person or entity which satisfies the creditworthiness standards set forth in paragraph (a); or (ii) an irrevocable letter of credit from a bank reasonably acceptable to Transporter, and equal to the lesser of 18 months and the period of time remaining in the term, of the anticipated charges under the Agreement executed in connection with this Open Season; or (iii) such other credit arrangements which are mutually agreed to by Transporter and such bidder, and which are accepted by Transporter on a nondiscriminatory basis.

To the extent evidence of a successful bidder's creditworthiness is not publicly available, upon reasonable request by Transporter, such bidder shall promptly provide evidence to Transporter of such shipper's creditworthiness, which Transporter may share with its lenders or creditors or any nationally recognized rating agency that is then maintaining a rating of Transporter's debt securities.

If any change in ratings or conditions requires a successful bidder to change the manner in which it demonstrates its satisfaction of its creditworthiness requirements, such bidder shall make that demonstration (including, if necessary, the provision of any irrevocable unconditional guarantee or irrevocable letter of credit) within 15 Business Days of the change in ratings or conditions requiring the new demonstration of creditworthiness.

Successful bidders that fail to satisfy the creditworthiness requirements of this section within a reasonable time will have their early-season storage withdrawal deliverability award withdrawn. Transporter reserves the right to seek any and all permitted remedies as a result of the breach of the bid. Transporter will treat any financial statements provided by bidders as confidential.

Execution of Totem Enhanced Storage Deliverability Service Agreement:

Each successful bidder and Transporter shall enter into and execute an Agreement reflecting the terms of its bid as awarded by Transporter. All successful bidders shall execute and return an Agreement within the earlier of the day before the first day of the term of firm service in the bid as awarded by Transporter or 20 Business Days following the day Transporter tenders the Agreement to the bidder (“Execution Date”). If a successful bidder fails to fully execute and return the Agreement 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 successful bidder's failure to execute the Agreement. The Agreement will be in the form contained (or to be contained) in the Tariff, with certain additional non-conforming provisions consistent with the requirements and conditions set forth in this Open Season.

Evaluation Criteria:

If Transporter receives acceptable bids in excess of the actual amount of available early-season storage withdrawal deliverability, then Transporter will award and/or allocate the early-season storage withdrawal deliverability 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 early-season storage withdrawal deliverability than requested.

The PV of a bid will be calculated as the sum of the present values for all of the months beginning with the first month service is available through the end date of the applicable 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 volume

i = the monthly discount rate of 0.6958% (which is the annual discount rate of 8.35% divided by 12)

n = the number of months from February 1, 2026 (such date being the earliest date the service is expected to be available in this Open Season) to the last month the revenue will be received according to bid term (the first month early-season storage withdrawal deliverability is available n = 1, the second month n = 2, and so on); provided, that, only the first 360 months of the bid term will be included in the calculation of the PV

Additional Reservations and Conditions:

Transporter reserves the right to reject all bids received in connection with this Open Season and cancel the proposed project if it does not receive adequate bids for quantities and terms that are necessary to economically justify capital investment in the project.

The project is subject to Transporter's timely receipt of all necessary regulatory approvals, permits, and other authorizations required therefore, in each case, in form and substance satisfactory to Transporter in its sole discretion.

Although this is a binding Open Season, Transporter reserves the right, in its sole discretion, to consider requests received after the Open Season End Date, including requests to modify a bidder's validly submitted bid, but will be under no obligation to do so. Requests for early-season storage withdrawal deliverability received after the Open Season End Date will be subject to the terms and conditions set forth in this Open Season.

Transporter reserves the right to, upon notice at any time and in its sole discretion, terminate this Open Season, extend any date or time specified in this Open Season, amend or supplement the terms of this Open Season, or otherwise modify this Open Season. In addition, Transporter reserves the right to reject any bid which fails to comport with the provisions of this Open Season in any respect.

Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Tariff.

Contact Information:

Questions concerning this Open Season should be directed to:

Anthony Sanabria         (719) 667-7582

Ken Ulrich                   (719) 520-3712

Open Season Bid Sheet Follows

OPEN SEASON BINDING BID SHEET

** TOTEM ENHANCED STORAGE DELIVERABILITY SERVICE**

E-Mail Bid To: KMWestBids@KinderMorgan.com

A.         Shipper Information:

Legal Name of Shipper:                                                                     

            Name of Requesting Party:                                                                

            Title of Requesting Party:                                                                  

            DUNS Number:                                                                                  

Shipper Address:                                                                               

            Shipper Telephone:                                                                            

B.         Term of service:          Commencing On:        □  The In-Service Date of the Project Facilities, excluding the base gas injection, anticipated to be February 1, 2026.

                                    or

                                    □                                                                     

Terminating On:                                                                                

For purposes of this Bid Sheet, the “In-Service Date of the Project Facilities” will be the date (i) the project facilities necessary to perform the services described in the Totem Enhanced Storage Deliverability Service open season notice (the “Open Season Notice”) have been completed and are ready for service and (ii) Transporter is authorized to place such project facilities into service.

C.         Maximum Delivery Quantity (“MDQ”):                  Dth per day at current ATC Factor of 1,074 Btu ¹ 

D.        Reservation Rate:       Shipper bids the maximum recourse rate for the new Totem Enhanced Storage                                     Deliverability Service, as detailed in the Open Season Notice.²

Additionally, Shipper shall pay any applicable commodity charges contained (or to be contained) in Transporter's Tariff, ACA surcharges, fuel and lost and unaccounted-for gas, and any other surcharges which are (i) approved by FERC from time to time, including in or pursuant to any subsequent filing, and/or (ii) authorized by Transporter's Tariff from time to time.

E.         Primary Delivery Points and Minimum/Maximum Pressures:

¹ For clarity, a MDQ of 53,700 Dth per day (ATC Factor of 1,074 Btu) entered in this section of the bid sheet would be represented as 50,000 Dth per day (ATC Factor of 1,000 Btu) on Shipper's Agreement.

² Rate(s) for the new Totem Enhanced Storage Deliverability Service will be adjusted effective the first of the month of the month following the date when a new currently effective Totem ATC is posted on Transporter's electronic bulletin board and on Transporter's website under Informational Postings, as provided in Section 1 of the General Terms and Conditions of Transporter's Tariff. Such adjustments shall be made by multiplying the fraction [1,000 over (new effective ATC in Btu, which is currently 1,074)] times Shipper's Base Rate(s). For purposes of this note, Shipper's “Base Rate(s)” shall be Shipper's rate(s) as calculated based on an ATC of 1,000 Btu per cubic foot.

³ At an ATC Factor of 1,074 Btu.

⁴ As a clarifying example, a Primary Point of Delivery Quantity of 13,425 Dth per day (ATC Factor of 1,074 Btu) entered in this section of this Bid Sheet would be represented as 12,500 Dth per day (ATC Factor of 1,000 Btu) on Shipper's Agreement.